Court adviser backs UK in retirement challenge

A EU court adviser backed British rules yesterday allowing employers to dismiss workers without redundancy payments once they reach mandatory retirement age.

The case is being closely watched in Britain, where lawyers estimate that up to 25,000 people are forced to retire against their will each year.

"In line with previous case law, rules such as the UK rules on mandatory retirement at issue do fall within the scope of the directive," the Luxembourg-based European Court of Justice said in a statement setting out the opinion of its advocate general. The opinion is not binding on the court.

The case was referred to the European court in 2006 by the British High Court after the National Council on Ageing argued the regulation contravened a European directive outlawing age discrimination.

Under legislation that came into force earlier that year, British workers have the right to work until age 65 and cannot be made to retire before then. However, employers can force workers over 65 to retire.

The advocate general advised that such discrimination can be justified "in the context of national law by a legitimate aim relating to employment policy and the labour market".

Under British pension reforms, the state pension age for both men and women is to increase from 65 to 68, phased in gradually between 2024 and 2046.