A recent Employment Appeal Tribunal (EAT) decision has provided guidance on the inclusion of clauses in partnership agreements which require partners to retire at a fixed age, says UK law firm Morgan Cole Solicitors.
Partnership lawyers had been waiting for some months for the decision of the EAT to be handed down in the case of Seldon v Clarkson Wright & Jakes. The decision was reached at the end of last year.
The decision as to an appropriate retirement age will not be the same for every partnership, but in summary the position is:
The advice to partnerships with fixed retirement ages is that the chosen age will need to be carefully considered to ensure that the partnership has clear reasons for having a fixed retirement age.
If one of the reasons is to preserve collegiality and avoid the introduction of a performance regime, then the partnership will have to carefully analyse the age at which performance will fall away when fixing the retirement age.
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