Absence of Written Policy Undermines Mandatory Retirement Defence

In this Case, the Complainant was compulsorily retired at the contractual retirement age of 65, after having requested to continue working beyond that age. While the Respondent had considered the request and maintained that extensions were assessed on a case-by-case basis having regard to business needs, the WRC found that it had failed to establish an objectively justified mandatory retirement age.

Although the Respondent relied on succession planning and business needs, these justifications were not reflected in any written retirement policy or procedure, nor were they clearly communicated to Employees. This lack of documented objective justification, together with the absence of a transparent process for considering longer working requests, resulted in a finding of age discrimination.

With the recent introduction of an Employee’s statutory right to notify their Employer that they do not consent to compulsory retirement before reaching the State Pension Age, it is more important than ever for Organisations to review and update their retirement policies. Organisations should ensure that any mandatory retirement age is supported by a clearly documented legitimate aim and that there is a fair, transparent and consistently applied procedure for considering requests to work beyond retirement.

To learn more about partnering with Adare Trusted People Partners’ Leading HR & Employment Law Experts, please contact Neil McCormack nmccormack@adarehrm.ie today.