“whether on the basis of the EAT, Court of Appeal and Supreme Court judgments, the retirement provisions in the Respondent’s partnership deed was (sic) justified in all the circumstances.”
“ensuring that associates are given the opportunity of partnership after a reasonable period as an associate, thereby ensuring that associates do not leave the firm;” workforce planning: “facilitating the planning of the partnership and workforce across individual departments by having a realistic long term expectation as to when vacancies will arise;” and congeniality: “limiting the need to expel partners by way of performance management, thus contributing to the congenial and supportive culture in the firm.”
“’Necessary’ is to be qualified by the adjective ‘reasonably’ but the presence of the word ‘reasonably’ reflects the applicability of the principle of proportionality and does not permit the margin of discretion or the range of reasonable responses ( Hardy & Hansons plc v Lax(2005) IRLR 726 ). The employer does not have to show that no other proposal is possible but that the means is justified objectively notwithstanding its discriminatory effect. The Tribunal has to take account of the reasonable needs of the business and to make its own judgment whether the proposal is reasonably necessary based upon a fair and detailed analysis of the working practices and the business considerations.”
“The Tribunal considered whether the selection of the age of 65 as the mandatory retirement age was appropriate and reasonably necessary to achieve each of the two aims. The age had been in the partnership deed for as long as could be remembered and the clause was retained in the most recent partnership deed without discussion. It was an age that the Claimant described as a reasonable target. It was not an age with which any of the partners had expressed any disagreement. The partners, including the Claimant, were in an equal bargaining position when they consented to the inclusion of the rule.”
“80. The partners might have selected another age whether below or above the age of 65. The fact that a higher or lower retirement age could have been agreed does not mean that the age selected was not appropriate and reasonably necessary (see the judgment of the Court of Appeal). The aims were to assist the retention of associates and facilitate planning. It is not, in the view of the Tribunal, correct to argue that any retirement age would achieve the two aims. The retirement age has to be not so high as to discourage associates who may otherwise leave and join a firm where the opportunities for partnership are more immediate. Nor must it be so low that the associates become concerned (a) about partners being required to retire before the end of their careers and continuing to practise elsewhere with the consequential loss to the partnership of their goodwill and connection and/or (b) that the duration of partnership would not meet their expectation or (c) that there might be insufficient time as partners to make proper provision for retirement. Planning will be facilitated by reference to the dates upon which partners are bound to retire and the matters referred to above in relation to the retention of associates apply. Planning the future cannot be achieved by any retirement age. The age must be such that the aims of the partnership are fulfilled not only in the provision of legal services but also in the progression of younger solicitors to provide and extend such legal services. 81. There has to be a balance between the needs of the firm and of the partners and of the associates. Partners are to be encourage to spend their professional lives with the firm with a view to establishing a successful and continuing legal practice but not to an age where succession cannot be assured and associates will lose interest and leave. It does not follow that there is but one age that fulfils such aims. There is a narrow range of ages that will do so. So, for example, the partners might have selected the age of 64 or 66 as reasonably necessary to achieve the two aims. In such circumstances the Tribunal had also to consider other factors that contribute to the selection of the mandatory retirement age in order to determine whether the age was also appropriate.”
“90. A mandatory retirement age to achieve the two aims has to be a balance between the interests of the practice, the partners and of associates who aspire to partnership. Any determination has to weigh up the needs of the partnership against the harm caused by the discriminatory treatment. In addition to the matters referred to in paragraph 80 above, the Tribunal took account of the fact that the lower the retirement age the more harm to the partners who are required to retire and the higher the retirement age the more harm to the associates who may leave. The age has also to reflect that the Respondent needs to be able to plan for its future and that such plan has to ensure that there are partners in place with relevant experience to ensure the future of the practice and its various practice areas. In short the age has to reflect the expectations of the partners and associates, ensure succession and fulfil the needs of the partnership. 91. The Tribunal has found that there is a narrow range of ages any one of which would achieve the two aims. In concluding that the age of 65 was proportionate the Tribunal has taken into account the factors (which I have just mentioned) […] and in particular that the partners had consented to the mandatory retirement age and that the default retirement age at the relevant time was 65. The Tribunal was supported by the judgment of the Court of Appeal and its conclusion that (a) the age of 65 was a fair and proportionate cut off date in relation to the two aims and (b) the selection of one of a number of possible ages was not of itself unlawful. 92. While the position might be different if the relevant date had been after the abolition of the default retirement age and after the planned changes in the state pension age, the Tribunal is satisfied that the mandatory retirement age is appropriate and reasonably necessary for the achievement of each of the two aims and finds that on the basis of the judgments of the EAT, the Court of Appeal and Supreme Court, the retirement provision of the Respondent’s partnership deed was justified in all the circumstances.”
“38. There is a distinction between a cut-off date in relation to the ‘dead men’s shoes’ aims, and the ‘collegiality aim’. Under-performance as a result of age is not relevant to 65 being chosen as a cut-off to encourage recruitment or long-term planning. That being so it seems to me that the mere fact that the firm might have chosen some other age in relation to those aims cannot automatically lead to the conclusion that the rule which provides for retirement at 65 is not justified. A rule which adopts 66 is less discriminatory to partners aged 65, but is now more discriminatory to partners aged 66. The selection of any age is going to be more discriminatory to that age. If that makes the rule unlawful, it would simply be impossible to justify a retirement age introduced with those aims. Directive 2000/78 (recital 14) seems to contemplate the legitimacy of a retirement age and it cannot thus have envisaged that it would be impossible to justify one age because a different age would be less discriminatory to persons of the age chosen. 39. The question is whether the clause introduced with the legitimate aims is a proportionate means of achieving those aims. If it is proportionate to choose 65, the fact it would be less discriminatory to some to have chosen 66 cannot in my view render the clause unlawful. It is true there was no evidence as to whether it would have made any difference to associates or others whether the age chosen had been 68, 65 or 63. But in my view the fact the firm might have justified any one of those ages does not mean that it is unable to choose one at all. The choice of 65 when regulation 30 actually renders lawful 65 in the employer/employee context must support the choice of 65 as a fair and proportionate cut-off point.”
“[…] That qualification (that is the use of the word reasonably) does not, however, permit the margin of discretion or range of reasonable responses for which the appellants contend. The presence of the word ‘reasonably’ reflects the presence and applicability of the principle of proportionality. The employer does not have to demonstrate that no other proposal is possible. The employer has to show that the proposal […] is justified objectively notwithstanding its discriminatory effect. The principle of proportionality requires the tribunal to take into account the reasonable needs of the business. But it has to make its own judgment, upon a fair and detailed analysis of the working practices and business considerations involved, as to whether the proposal is reasonably necessary. I reject the employers’ submission (apparently accepted by the appeal tribunal) that, when reaching its conclusion, the employment tribunal needs to consider only whether or not it is satisfied that the employer’s views are within the range of views reasonable in the particular circumstances.”
“As to whether the means chosen were proportionate, in the article 6(1) sense of being both appropriate and (reasonably) necessary to achieving those aims, the case is already to go back to the ET on the basis that it had not been shown that the choice of 65 was an appropriate means of achieving the third aim. The question, therefore, was whether the ET would have regarded the first of two aims as sufficient by themselves. In answering that question, I would not rule out their considering whether the choice of a mandatory age of 65 was a proportionate means of achieving the first two aims. There is a difference between justifying a retirement age and justifying this retirement age. Taken to extremes, their first two aims might be thought to justify almost any retirement age. The ET did not unpick the question of the age chosen and discuss it in relation to each of the objectives. It would be unduly constraining to deny them the opportunity of doing so now. I would emphasise, however, that they are considering the circumstances as they were in 2006, when there was a designated retirement age of 65 for employees, and not as they are now.”