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ARTICLE · 24 DECEMBER 2014

Did you know - compulsory retirement at 65 is unlawful

The FW Ombudsman has successfully prosecuted an employer for terminating an employee upon attaining the age of 65 years.

AustraliaEmployment and HR

The Fair Work Ombudsman has successfully prosecuted a Thai restaurant business on the Gold Coast for terminating an employee upon attaining the age of 65 years of age.

The employee had been working for about 15 years and brought complaints about underpayment of wages which were disputed by the business.

As the issues were unresolved the employee sought a redundancy and severance payment. The employer refused and stated that it was company policy not to employ any staff that attain the retirement age of 65 years of age.

The Federal Circuit Court held that this was a breach of the General Protections provisions under Part 3.1 of the Fair Work Act 2009 (Cth) which prohibit adverse action based on age. The Federal Circuit Court ordered the company to pay the employee $10,000 for loss suffered plus $20,790 in fines. The company's joint directors were fined a further $4,180 each.

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