Labor & Employment Law

EU Top Court OKs Mandatory Retirement

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Highlighting the difference between U.S. and European employment law, the the European Union’s top court ruled today that it is legal for employers to set a mandatory retirement age.

Although the EU has laws against discrimination, including age discrimination, it is legal for an employer to have a mandatory retirement policy based on age under some circumstances, the European Court of Justice decided. Mandatory retirement supports the public policy of providing jobs to younger workers, the court explained in its opinion, so long as retiring older workers are provided with full pensions, according to the Dow Jones news service and Jurist.

As discussed in an ABA Journal feature earlier this year, employment law in the U.S. often differs considerably from employment law in the EU (and other parts of the world).

Mandatory retirement has been a hot issue lately concerning law firm partners—particularly following a recent $27.5 million settlement in an Equal Employment Opportunity Commission case, as discussed in a recent ABAJournal.com post. Although partners presumably are not protected by anti-discrimination laws if they have a role in running the firm, since the laws apply only to employees, the ABA House of Delegates has recommended against mandatory retirement policies at law firms.

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