Compulsory retirement age of 65 in Spain held lawful by the ECJ. (Palacios v Cortefiel Servicios SA [2007])


Good news for the Government's defence to Heyday's challenge to the legality of the UK compulsory retirement age.


As reported in our newsflash of 16 August 2007, "Heyday" (an organisation backed by the charity Age Concern) is fighting a case against the Government in an attempt to overturn parts of the Employment Equality (Age) Regulations 2006 including allowing employers to set a compulsory retirement age of 65. If Heyday was successful employers would not be able to lawfully retire employees at age 65 or over and it would be more difficult to justify direct discrimination.

The Heyday case has been referred to the ECJ for its judgment on the above issues. The judgment is not expected for another year or two.

However, as the ECJ has held the Spanish compulsory retirement age of 65 to be lawful, this is a helpful indication that it could make a similar decision in relation to the UK.