Mitigating Pension Costs – The Heyday Case

On 23 September, we issued an e-update ( Advocate General Rules Against Heyday Case) reporting that the Advocate General to the European Court of Justice had issued an opinion against Heyday's challenge to the UK allowing a compulsory retirement age of 65. The opinion gives an indication of how the ECJ is likely to decide the case: its decision is expected in December.

The Employment Equality (Age) Regulations 2006 contain a procedure allowing employers to fairly dismiss employees, who are aged 65 or over, by reason of retirement and it is this that Heyday is challenging.

Some employers 'retire' employees as a means of avoiding the cost of ongoing pension and life assurance provision, which can become significantly more expensive once an individual attains age 65.