Business chiefs welcome decision to keep mandatory retirement at 65

The High Court has ruled that businesses will still be allowed to enforce mandatory retirement for people 65 and over without giving a reason or redundancy pay.

Age Concern and Help the Aged, the parties that brought the case forward, argued that current rules are in breach EU employment law. However, Mr Justice Blake today ruled otherwise, and employers are expected to largely greet the outcome as it will ensure they avoid any compensation claims that may have stemmed from a change in ruling.

The British Chambers of Commerce (BCC) released a statement shortly after the decision was made. Adam Marshall, Director of Policy at the BCC, underlined the Confederation's belief that it would be unnecessary to change the current system, saying:

"This was the right decision. The vast majority of businesses value their older employees and the considerable experience that they can bring to a firm. We do not believe there is evidence of widespread use or abuse of the system; only 1 in 4 businesses we surveyed use the default retirement age."

"Employees already have the right to request to postpone their retirement, and we believe the existing rules allow for the fairest outcome on both sides. Businesses need a period of stability to allow all the recent changes to employment legislation to bed down. They don't want more tinkering with employment rules."

There are currently 1.4 million people that are working past the mandatory retirement age in the United Kingdom.

25/09/09