View more on these topics

Supreme Court rejects retirement age discrimination complaint

The Supreme Court has rejected an appeal by an employee who argued his employer’s decision to sack him at 65 was age discrimination.

The judgment relates to Leslie Seldon’s complaint against his former employer Clarkson Wright and Jakes.

Seldon joined the law firm in 1971 and was made an equity partner in 1972.

In 2005 Seldon and the other partners in the firm agreed and adopted a partnership deed which provided that partners who reach the age of 65 had to retire from the firm by the following December.

Seldon reached the age of 65 on January 15, 2006. He asked to continue working beyond this point but was refused because the firm’s other partners decided there was “no sufficient business need”.

Seldon’s initial complaint against the decision was rejected by the Employment Tribunal.

His subsequent appeal to the Supreme Court has today also been unanimously dismissed.

Business leaders and lawyers have played down the impact the ruling will have on legislation introduced by the Government in October last year to end compulsory retirement at age 65.

Confederation of British Industry head of employment and employee relations Guy Bailey says: “The absolute priority for the business community is to deal with particular issues about conversations around retirement planning.

“There is very little that most employers can draw from this ruling.”

CMS Cameron McKenna head of employment law Anthony Fincham says: “I do not think this judgment will allow mandatory retirement ages to return by the back door.”

The Government will produce a consultation paper in the summer on ‘protected conversations’ about retirement between employers and employees.

A Department for Business, Innovation and Skills spokesman says: “The decision today helps to clarify the use and justification of compulsory retirement ages by businesses, following the abolition of the default retirement age.

“It confirms that businesses can justify a compulsory retirement age based on legitimate aims such as workforce planning provided that this is proportionate.

“While we do not expect this decision to fundamentally change the retirement policies of most businesses, we believe that this decision will give greater certainty to those businesses that have chosen to apply a retirement age.

“Legislation has always allowed a business to impose a set retirement age so long as it could be objectively justified. This was the case while the DRA was in operation and remained the same following its abolition.

“This decision has given some guidance as to when this may be acceptable. We will now be considering the implications of the judgment, including whether any adjustments to official guidance are necessary.”



Andrew Sentance: Interest rates may be set to rise

Former MPC member Andrew Sentance believes inflationary pressures may force the Bank of England to look at raising interest rates in the near future. In a letter published by The Telegraph, the former rate-setter said the MPC may be set to do a U-turn over its attitude to inflation, a move which would prompt the […]

Society of Pension Consultants elects Roger Mattingly as president

The Society of Pension Consultants has elected JLT Benefit Solutions director Roger Mattingly as president. Mattingly will replace Buck Consultants head of technical services Kevin LeGrand in the role on June 1. Mattingly says: “The pensions industry in the UK is going through some of the biggest changes in its history. “As we continue to […]

Funds face 5% test on stocks and shares Isa

HM Revenue & Customs has warned some funds may become ineligible for inclusion in stocks and shares Isas following the implementation of the RDR. HMRC’s latest Isa guidance says each fund that meets the Isa requirements must pass a “5 per cent test” in order to qualify for the stocks and shares component. To pass […]

Schroders launches high income fund-of-funds

Schroders has announced the launch of a fund-of-funds vehicle investing in the Schroder maximiser and Schroder fixed income unit trusts. The managed monthly high income fund will be managed by both Thomas See, head of structured fund management, and Gareth Isaac, senior fixed income portfolio manager. The fund carries a potential yield of 5.5 per […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm