Pay and Benefits

A landmark Supreme Court age discrimination case has the potential to dramatically change how employers deal with retiring employees.

 

Seldon v Clarkson Wright and Jakes Ltd considers whether it is fair to force  an individual to leave the workplace at a certain age.

 

The case began before the abolition of the default retirement age was introduced. It may have a profound impact on whether employers can maintain a compulsory retirement age, even if they have legitimate aims.

 

Seldon was automatically relieved of his duties as a Partner at Clarkson Wright and Jakes at 65. He took his case to the employment tribunal where it was agreed that the action was discriminatory. However, it ruled that it was a proportionate means of achieving a legitimate aim. This was because it ensures succession, workforce planning and limited the need for performance management, thereby adding to the supportive culture of the firm.

 

Lou Marshall, Solicitor at Fladgate LLP, said: “The bottom line is employers are going to have to think very carefully about whether they can justify the decision to retire somebody at a particular age and that their means of achieving that are legitimate.”