In setting down a retirement age in a contract of employment, should you include the objective grounds for the retirement age in order to try to manage expectations or are you just tying your hands for the future? What would you advise?

Posted in : First Tuesday Q&A NI on 5 January 2016
Arthur Cox
Arthur Cox
Issues covered:

Retirement clauses should only be used where the employer can objectively justify compulsory retirement of employees, and in fact are not even necessary in those situations, since termination on notice may be preferable to automatic termination.

Although clauses such as this were fairly common in the past, their current use is comparatively rare. Compulsory retirement is potentially unlawful age discrimination, and should only be used where the employer can objectively justify it as a "proportionate means of achieving a legitimate aim”. 

Because of the risk of age discrimination, automatic retirement clauses should not be used without considering their implications. Where the employer

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Back to Q&A's This article is correct at 05/01/2016

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Arthur Cox
Arthur Cox

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