Retirement age increase

About an employee remaining in employment after the age of 69

If an employee continues to work after turning 69, they can be dismissed without the requirement of justified reasons being met, and the dismissal cannot be invalidated according to the Employment Protection Act. In principle, the employer only needs to notify the employee and their trade union about the dismissal. There is a possibility for the employee and the trade union to request negotiations with the employer regarding the dismissal. 

It is also important to note that a temporary substitute position or a fixed-term contract does not convert to a permanent employment if the employee continues to work after turning 69, and the employee also does not have priority for re-employment. Unless otherwise stated in the employee's contract of employment, they are entitled to a one-month notice period. 

It should also be noted that the provisions in the law are semi-mandatory, which means that a collective agreement at a workplace may contain provisions that deviate from or complement the aforementioned.   

An employment contract is formally concluded when two parties agree on employment. This agreement is of an individual nature as only the parties directly involved can decide on its conclusion. The general rule is that an employment contract is valid until further notice, unless otherwise agreed upon.

What should an employer consider?

It is important for employers to have an open and honest conversation with employees approaching this age and inform them about what it means to continue working after turning 69. It may also be a good idea for employers to implement a policy regarding employees reaching this age.

It is also important to note that an employer must not discriminate against employees based on their age, whether it be in terms of hiring, promotion, or termination. Employers should always act in accordance with the principles of equal treatment and avoid making decisions that could be perceived as age discrimination.

In summary

• Be familiar with the process: An employment contract establishes the employment relationship between the employer and the employee, and it is important to understand how and when this agreement is entered into.
• Note the increase in the retirement age to 69 according to the recent amendments to the Employment Protection Act.
• Note that employers no longer need to comply with all the provisions of the Employment Protection Act if the employee continues to work after this age.
• If an employee continues to work after the age of 69, they can be dismissed without any requirement for legitimate reasons, and the termination cannot be invalidated under the Employment Protection Act.
• In the case of continued work after the age of 69, temporary or fixed-term contracts are not converted into permanent contracts, and the employee does not have any preferential right to re-employment.
• Note that the provisions of the law are semi-mandatory, which means that collective agreements at the workplace may deviate from or supplement the law.
• For employers, it is important to have open discussions with employees approaching this age and inform them about the consequences of continuing to work after the age of 69.
• Consider implementing a policy on how the company handles the situation when an employee reaches the age of 69.
• Employers must avoid age discrimination and act in accordance with the principles of equal treatment in all decisions relating to employment, promotion, and termination.