The answer: maybe.
As of the 1st of January 2014, the State pension age has increased from 65 to 66, with further increases due in the coming years to 67 and then 68. Despite this, there is no statutory mandatory retirement age in Ireland, except for certain Public Sector jobs.
It is not unlawful under the Employment Equality Acts 1998-2011, for an employer or an organisation to impose a compulsory retirement age. However, case law provides that compulsory retirement must be objectively justified by reference to legitimate purpose and aims.
In Saunders v CHC Ireland Limited DEC-E/2011/142, the Equality Officer found that the mandatory retirement age of 55, was an appropriate and necessary aim, given that the role of winchman required a certain physicality. It was found that the retirement age was necessary to protect the health and safety of employees and customers and that the complainant was not discriminated against on the grounds of age.
In Elizabeth Sweeney v Aer Lingus Teo DEC-E2013-135, the Equality Officer concluded that management had failed to establish that the complainant’s compulsory retirement at 65 years “served a legitimate aim, or purpose”. The Equality Officer noted that a pension entitlement does not necessitate retirement and that in the absence of justification for the age discrimination, the claimant was entitled to succeed in her action. Thus, it is an important reminder to employers to review their retirement policy to include a reference as to why the employer retires workers at a particular age.
In the case of Hospira v Roper & Others LC 29/4/2013; the Labour Court held that differences in redundancy payments paid to complainants, as compared to their younger colleagues, fell within section 34 (3) (d) of the Employment Equality Act, thus permitting an exception to age discrimination. This is a significant break in the recent line of authorities on the requirement for objective justification in age discrimination cases and will have implications for employers in the context of compulsory retirement.
So is there change on the horizon? A new private members bill was recently tabled to prohibit employers from imposing compulsory retirement ages on their employees. The bill, which is based on similar progressive legislation elsewhere, including the UK and US, will introduce a voluntary system of retirement. The employer will however be entitled to provide financial incentives for voluntary retirement at a specified age.
If you are experiencing difficulties in this area or would like to discuss any employment matters further, please contact Catriona Sharkey – Catriona[at]brophysolicitors.ie
As of the 1st of January 2014, the State pension age has increased from 65 to 66, with further increases due in the coming years to 67 and then 68. Despite this, there is no statutory mandatory retirement age in Ireland, except for certain Public Sector jobs.
It is not unlawful under the Employment Equality Acts 1998-2011, for an employer or an organisation to impose a compulsory retirement age. However, case law provides that compulsory retirement must be objectively justified by reference to legitimate purpose and aims.
In Saunders v CHC Ireland Limited DEC-E/2011/142, the Equality Officer found that the mandatory retirement age of 55, was an appropriate and necessary aim, given that the role of winchman required a certain physicality. It was found that the retirement age was necessary to protect the health and safety of employees and customers and that the complainant was not discriminated against on the grounds of age.
In Elizabeth Sweeney v Aer Lingus Teo DEC-E2013-135, the Equality Officer concluded that management had failed to establish that the complainant’s compulsory retirement at 65 years “served a legitimate aim, or purpose”. The Equality Officer noted that a pension entitlement does not necessitate retirement and that in the absence of justification for the age discrimination, the claimant was entitled to succeed in her action. Thus, it is an important reminder to employers to review their retirement policy to include a reference as to why the employer retires workers at a particular age.
In the case of Hospira v Roper & Others LC 29/4/2013; the Labour Court held that differences in redundancy payments paid to complainants, as compared to their younger colleagues, fell within section 34 (3) (d) of the Employment Equality Act, thus permitting an exception to age discrimination. This is a significant break in the recent line of authorities on the requirement for objective justification in age discrimination cases and will have implications for employers in the context of compulsory retirement.
So is there change on the horizon? A new private members bill was recently tabled to prohibit employers from imposing compulsory retirement ages on their employees. The bill, which is based on similar progressive legislation elsewhere, including the UK and US, will introduce a voluntary system of retirement. The employer will however be entitled to provide financial incentives for voluntary retirement at a specified age.
If you are experiencing difficulties in this area or would like to discuss any employment matters further, please contact Catriona Sharkey – Catriona[at]brophysolicitors.ie
Catriona Sharkey
