News

Illegal to force airline pilots to retire at 60, European court rules

Employment Law & HR update 14/09/2011

The European Court of Justice (ECJ) has just ruled that forcing airline pilots to retire at 60 is unlawful age discrimination. The ruling is bad news for employers who seek to impose a fixed retirement age on staff, because their ability to do so will now be much more limited than previously thought.

What was the case about?

The case concerned pilots working for Lufthansa, who were required under a collective agreement between their trade union and the airline to retire at age 60. This is different from what international air safety law says. Although international air safety law does not permit pilots to work beyond the age of 65, pilots may work between age 60 and 65 subject to certain conditions.

The union argued that the retirement age of 60 was justified on safety grounds. The ECJ disagreed. It ruled that if international law says pilots are safe to work until the age of 65, then that took precedence over the agreement with the union.

More importantly, the ECJ also ruled that an attempt to justify a retirement age must be on the grounds of “employment policy, the labour market or vocational training”, so attempting to justify a retirement age on “air traffic safety” grounds was not legitimate under European law.

What reasons did the court give?

The union argued that the retirement age of 60 was justified under three possible exceptions allowed by EU law. The ECJ rejected them all.

The first was that it was necessary to protect public security and health. The ECJ rejected this because international air safety law permits pilots to fly up to the age of 65.

The second argument was that being under a certain age was a “genuine and determining requirement” for doing the job. However, no evidence was put before the court to support this, so again the ECJ felt that it should be guided by international air safety law.

The third and final argument was that the retirement age was “objectively justified” on the grounds of air traffic safety, but the ECJ noted that this was not one of the types of “objective justification” permissible under the directive, which are social policy objectives.

What impact will the case have?

The European directive which makes age discrimination unlawful is implemented in Great Britain by the Equality Act. Because the Equality Act is based on a European directive, tribunals and courts in Great Britain must apply the law in accordance with rulings made by the European Court of Justice. So this ruling, although made in a German case, will affect how the law is applied in Great Britain.

The default retirement age of 65 is being scrapped altogether from 1st October and it is already unlawful for an employer to force an employee to retire at 65 unless proceedings are already underway.

The Equality Act does allow for exceptions – these include national security; compliance with other laws; if age is a genuine occupational requirement; and justification as “a proportionate means of achieving a legitimate aim”. The problem with the Lufthansa ruling is that it is clear that each of these grounds must now be interpreted strictly.

Comment

Commenting on the ruling, Nick Soret, Head of Consultancy support at Mentor said:

“This case shows how difficult it will be for employers to prove that operating a fixed retirement age does not constitute unlawful age discrimination. Now that the default retirement age is being abolished, employers will have to learn to deal with an older workforce differently, making full use of performance management procedures and keeping in touch with their employees’ plans.

 

If you would like further information, and already subscribe to RBS Mentor, please call the Advice Service. If you would like more information on how Mentor could help your business in situations like this and many others, contact us today for information.

 

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