The Federal Labour Court has confirmed in the present judgment that work contractually agreed retirement age limits are generally to be understood as based on the entry of the standard pension.  

BAG, Judgment v 09.12.2015 -. 7 AZR 68/14 

The parties to the dispute argued over whether the proposed in the employment provision requiring the employment relationship "with the 65th year of life" ends, is quite effective. The plaintiff in that regard, that the attachment of the contractual agreement on the completion of 65 years had no legal effect because of the now occurring legislation concerning a later start of the regular retirement and beyond also lack of sufficient financial backing him - The applicant moved into a significantly above the income threshold related pay - unreasonably disadvantage and control furthermore constitutes age discrimination. 

The action was not successful by all three instances.  

In support of the BAG argues first that the contractual provision is to be interpreted as term of employment contracts on the time of reaching the standard retirement age for drawing old-age pension. This follows the opinion of the BAG directly from the wording of the limitation clause, within the meaning of a description of the time, in which the plaintiff for his age to purchase one standard retirement pension should be allowed. 

Also, in the opinion of the BAG such a clause is not surprising since it is widely used in working life as a design tool. Within a study conducted by the BAG balancing of interests, the court was no other decision, which is to be considered on the part of the employee that he is protected by the terms of a statutory retirement pension well and there's interest on the part of the employer, an appropriate and predictable personnel - be able to perform and succession planning.  

Here, the BAG pointed out, however, that the effectiveness of the agreed time limit requires that with the entry limit enters the place of work remuneration of permanent receipt of benefits from a pension. However, it is not necessary in the opinion of the BAG, the extent to draw the concrete economic security of the employee into consideration. Rather, the level of in individual cases arising from the statutory pension insurance claims for the effectiveness of an age limit control basically irrelevant. In particular, in the opinion of the BAG fails the objective justification of the agreed age limit does not mind that the applicant is neither a severance another additional social protection was still promised. 

Furthermore, the age limit control 5 AGG is also by § 10 sentence 3 no. Justified, after which a permitted difference in treatment on grounds of age may also include an agreement that provides for the termination of the employment relationship without notice of termination at a date on which to apply the employee a pension can. The scheme was judged by the European Court to be compatible with European Union law. 

With this decision, the BAG confirmed the validity of older contractual arrangements which provide for termination of the labor relationship upon reaching the age of 65 and is, moreover, also the statutory provisions of § 41 clause 2 SGB VI. Thus, the BAG provides legal clarity to such contractual arrangements.