Preston Russell Law - Legal Services for Southern People

Retirement Discrimination

Monday, September 07, 2009 by Brian Richardson, HR Adviser category Work to Rule

Baby boomers - there is no compulsory retirement age in New Zealand.  If you are fit for work and want to keep going your employer can’t require you to retire simply because you hit a certain age.
 
If you are slow and doddery or otherwise not keeping up, your employer might look into performance issues, but otherwise there is no requirement that you retire by a certain age. 
 
The one exception is for jobs where being a particular age is a necessary qualification for the job. In this case before your employment is terminated the employer must show (1) age is a genuine qualification for the job and (2) they can’t reasonably adjust their activities to accommodate you to continue in the role.

In a recent case, Air NZ demoted one of its senior pilots when he turned 60. The reason was that the USA prohibits pilots from flying in its airspace if they are 60 years old or over (and most long-haul flights have to go through USA airspace). 

The Employment Court said it was discrimination in breach of the Act.
 
The Court of Appeal said it wasn’t because the reason for the demotion was the US rule (not the pilot’s age particularly).
 
The Supreme Court found there was discrimination but the case fitted within the exception in that the pilot’s age was a genuine qualification of the job. 
 
The matter has now been referred back to the Employment Court to determine the second question: whether Air NZ could reasonably have reshuffled its rosters to enable the employee to continue in his role?
 
Remember also there is a general exception for discrimination cases too. The employer can discriminate in terms of gender,  ethnicity etc where that discrimination is a genuine requirement of the position. The range of jobs where this ability to discriminate on genuine grounds seems to be getting smaller and smaller but still exists.
 
The most common examples used are in the theatre/films etc where people of a certain ethnicity or race are required by the casting of the show.
Another widely used example is the selling of intimate apparel for women and in particular the fitting of bras. Here there is a generally accepted right to discriminate in favour of women for privacy and initimacy. The requirement to have only women fitting intimate apparel is a genuine occupational requirement, much like the issue surrounding the pilot and age.