Brussels, 12/10/2010 (Agence Europe) - In its judgment in Case C-499/08 handed down on 12 October, the Court of Justice decided that the Danish provision which deprives workers who, although eligible for an old-age pension from their employer, nonetheless intend to waive their right to such a pension temporarily in order to continue to work to be disproportionate.
Danish law grants a severance allowance to workers who have been employed in the same undertaking for at least 12 years. However, that allowance is not paid to workers who, on termination of the employment relationship, may draw an old-age pension under an occupational pension scheme even if the person concerned intends to continue working. The Western Regional Court (Denmark) asked the Court if this restriction complies with Directive 2000/78/EC on equal treatment in employment and occupation or if it constitutes discrimination on grounds of age.
Examining the objectives sought by the Danish regulations, the Court noted that the severance allowance seeks to facilitate the move to new employment for workers who have many years of service with the same employer while avoiding claims for both severance allowance and an old-age pension. In principle, that measure must therefore be regarded as justified “objectively and reasonably”, “within the context of national law”, as provided for in Directive 2000/78.
However, the Court considered that that restriction goes beyond what is necessary to achieve those objectives. It excludes from the severance allowance not only all workers who will actually receive an old-age pension from their employer, but also all those who are eligible for such a pension but who intend to continue to work. By precluding payment of the severance allowance to workers who, although eligible for an old-age pension from their employer, nonetheless intend to waive their right to such a pension temporarily in order to continue to work, the legislation goes beyond what is necessary to achieve the social policy objectives pursued by that provision, and is not justified. (F.G./transl.rt)