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ARTICLE · 05 APRIL 2016

Compulsory Retirement Age In The Workplace

On 1 January 2016 the Equality (Miscellaneous Provisions) Act 2015 (2015 Act) was enacted. This Act has helped bring a degree of clarity to the use of compulsory retirement ages in the workplace.

IrelandEmployment and HR

On 1 January 2016 the Equality (Miscellaneous Provisions) Act 2015 (2015 Act) was enacted. This Act has helped bring a degree of clarity to the use of compulsory retirement ages in the workplace.

Prior to the enactment of the 2015 Act the Employment Equality Acts were at odds with a growing line of case law on the legality of compulsory retirement ages. On its face it appeared that:

  • it was not discriminatory under statute on the grounds of age to fix different retirement ages; and
  • employers had an absolute right to set retirement ages without the risk of a claim for age discrimination.

However, the Irish legislation differed to Article 6 of the European Council Directive 2000/78 EC, which required the use of a retirement age in the workplace to be "objectively justified by a legitimate aim". Despite the fact that the Irish legislation did not refer to this requirement, we have seen the Irish courts in recent years follow the approach taken by the Courts

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