Can an employer terminate an employee's contract on the grounds of age?

Can an employer terminate an employee's contract on the grounds of age?

Are there rules regarding dismissal on grounds of advanced age?

Or can an employee remain in a position for as long as he or she wishes?

Age limit applicable to all

The Working Environment Act provides strong protection for employees. However, there is an upper age limit. When an employee reaches the age of 72, the employment relationship may be terminated. This is stated in Section 15-13a of the Working Environment Act. However, this does not mean that you must resign due to age at 72. If the employer and employee agree, an employment relationship may continue for as long as they wish.

Health and safety considerations

If necessary for health or safety reasons, a lower age limit may be set in accordance with Section 15-13a, paragraph 2. However, such a lower age limit must have an objective purpose and must not be disproportionately intrusive.

Special age limit of 70 years

Regardless of health and safety considerations, employers may also set an age limit lower than 72, but not below 70. For a limit below 72 to be valid, it must have been made known to employees, typically through staff regulations or in employment contracts. The Working Environment Act also stipulates that such an age limit must be applied consistently. If such a rule exists, it must apply to all employees in the company. However, if the employer has followed these guidelines, dismissal on the grounds of age is possible.

Duty to give notice

If an employer wishes to terminate an employment relationship on the grounds of age, a notice of termination is not required. A written notification that the employment relationship is being terminated is sufficient. This means that the strict formal requirements that apply to termination do not apply. However, such notification must be given at least six months before the employee is to leave. This means that if notice is given when the employee turns 72, it will not be possible to demand resignation until the employee reaches the age of 72½.

Do I need a lawyer?

If you are an employee and you wonder whether your employer has complied with the rules on dismissal due to age, a lawyer can help you ensure that your rights are protected. If you are an employer and want to handle your older employees correctly, it may be a good idea to develop a solid plan in collaboration with a lawyer. You can read more about labor law and our specialized labor law attorneys here. 

Audun Lillestølen

Lawyer (H)

The author of this article is a lawyer with the right to appear before the Supreme Court. He has worked on labor law cases for more than 20 years.