The statement that law firms will not be able to specify a retirement age for partners from October 2006 may have dismayed and misled readers (see (2006) Gazette, 7 September, 10).
The Employment Equality (Age) Regulations 2006 will make it unlawful to discriminate against a partner on grounds of age, unless it can be objectively justified. Imposing a retirement age will have to be shown to be a proportionate means of achieving a legitimate aim, such as maintaining the growth and profitability of the partnership. Whether it is proportionate will in part depend on the other means adopted to the same end.
The retention of retirement provisions in partnership agreements will probably be warranted for the vast majority of partnerships. As David Furst rightly points out, good succession planning is essential to the success of a partnership. No firm can expect to attract and retain talent where career progression is either blocked or limited by a body of ageing and, perhaps, aged partners.
Performance management is to be recommended for a variety of reasons, not least of which is aiding partners in giving of their best, and recognising when they could no longer do so and should prepare for retirement.
The imposition of an arbitrary retirement age, which is unsupported by strategic planning and appropriate management practices, will undoubtedly leave partnerships vulnerable to challenge.
The new regulations may be unwelcome to some, but the development of sound business practices is to be encouraged. Those who have considered and prepared for the impact of the regulations may have little to fear.
Rachel Dineley, Beachcroft, London
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