A common question among workers approaching retirement age is whether their employer can force them to retire simply for having reached a certain age, even if the worker would prefer to keep working. The answer is nuanced: it isn't automatic, but it isn't banned in every case either.
The general rule: you can't be dismissed for age alone
As a general rule, age by itself is not a valid reason to end an employment contract. A dismissal based solely on having reached a certain age, with no other justifying factor, could be considered discriminatory.
The exception: mandatory retirement clauses in collective agreements
The law allows collective bargaining agreements to include clauses that permit ending an employment contract once the worker reaches the standard Social Security retirement age, provided certain additional requirements set by regulation are met, including employment policy objectives (for example, linking the measure to hiring new workers, improving employment stability, or other legally recognized objectives) and the affected worker meeting the requirements to be entitled to 100% of their contributory retirement pension.
Why it's not enough for the agreement to simply mention it
Courts have been strict when assessing the validity of these clauses, requiring real proof of the connection between the measure and the employment policy objectives that legally justify it — a generic mention in the agreement with no genuine justification behind it is not enough.
What happens if your agreement doesn't have this clause
If your collective agreement doesn't expressly include a valid mandatory retirement clause meeting these requirements, your employer cannot force you to retire simply for reaching the standard age: you can keep working (even combining work and pension through active retirement, if you choose to retire voluntarily while continuing to work part-time).
What happens if your contract is terminated without meeting these requirements
If your employer ends your contract citing your age, without a valid agreement clause backing it under the required legal conditions, that termination could be challenged as unfair dismissal or even ruled void due to discrimination, with the corresponding consequences in terms of compensation or reinstatement.
What to do if you find yourself in this situation
If your employer notifies you of a contract termination based on a mandatory retirement clause in your agreement, it's worth checking with an employment law advisor whether that specific clause really meets all the legal requirements before simply accepting the situation.
Estimate your financial situation facing a termination like this
Our severance pay calculator and our retirement pension calculator help you estimate, respectively, the components of a possible settlement and the approximate amount of your future pension.