In a case that could lead to changes to UK retirement laws, Heyday is arguing before the European Court of Justice that the default retirement age in the Employment Equality (Age) Regulations 2006 is incompatible with EU laws. The default retirement age allows employers to retire individuals at 65 or over.

The setback came with the Advocate General's opinion that UK legislation permitting employers to dismiss employees aged 65 or over if the reason for dismissal is retirement can, in principle, be justified under EU legislation. In essence, he said that the default retirement age is lawful if it can be objectively and reasonably justified in the context of national law by a legitimate aim relating to employment policy and the labour market.

The opinion is not binding, but the European Court of Justice follows the Advocate General more often than not, so it's bad news for Heyday in advance of the final ruling, which is expected to be given in late 2008.

Read more about the opinion in XpertHR's case reports stop press service.