Another European Retirement Decision:

The CJEU upheld a recent decision that a retirement age of 67 in Sweden, did not breach the Equal Treatment Directive, and thus was a lawful age for retirement.

The case involved a question of Swedish National Law, which stated that citizens could work up until their 67th Birthday, after which their employment would be terminated. Notice of one month should be given by the employer should they wish to implement this policy.

The employee in question argued that as pensions were based upon the average earnings he had earned over his working career, he would have obtained a higher pension had he been able to continue working. As such the policy had caused him a severe detriment by preventing him from obtaining a lower pension rate. He claimed the policy to be in breach of the Equal Treatment Directive and Age Discrimination

The Court held that there was a difference in treatment, however the question put to them was 'would such action be objective and reasonably justified as a legitimate means to achieving a policy aim?' This is currently the question running through the UK system as to what will be deemed to be an acceptable measure in such cases. It is therefore good to hear that the court held the policy to be lawful, as it served as a legitimate means to achieving their labour market policy.

Published: 23 Jul 2012

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