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The long running campaign by Age Concern and Help the Aged to have the UK's default retirement age (DRA) scrapped, known as the Heyday appeal, appears to have failed today.
Mr Justice Blake said the rule, introduced in October 2006 as part of age discrimination laws, did not breach EU regulations and that it was "legitimate and proportionate" for the government to bring it in.
However, he did say there was a ‘compelling case’ to increase the default age from 65 and that he may have ruled differently had the government not announced plans to move forward by one year to 2010 a reappraisal of the default retirement.
The rules permit employers in the private and public sector to set a mandatory retirement age, irrespective of a worker’s ability or willingness to continue. An employee may request to work beyond the age of 65 but the employee has the right to refuse that request without giving any explanation as to the reason.
It is thought about 25,000 workers are affected each year.
This is effectively the conclusion of a three year battle by the charities Age Concern and Help the Aged, who had argued that the laws breached the EU's Equal Treatment at Work Directive and gave employers the ability to direct discrimination on grounds of age.
Andrew Harrop, speaking on behalf of the charities, said: "Today's ruling does not spell the end of our campaign to win justice for older workers – in fact, we will be stepping up our fight to get this outdated legislation off the statute book.
"Despite the judgement today, ministers still have the opportunity this side of a crucial general election to give real help to people in their 60s by outlawing forced retirement. They should amend the equality bill which is currently making its way through parliament."
Harrop said there is a serious need to work past 65 due to the economic turmoil and the loss in the value of many pensions and savings. He went on to urge the government's own study into the law to be a fundamental review, as the current situation was unsustainable.
The Department for Business, Innovation and Skills welcomed the ruling and said it will form part of its review of the retirement age next year.
However, Susan Mayall, employment lawyer of Pearson Hinchliffe Commercial Law, said: “Many employers will be breathing a sigh of relief at the news of this ruling. Not all employers resort to the DRA as a matter of routine anyway, but with a mandatory age in place a considerable legal and administrative headache is removed.”
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