Mandatory Retirement — Ontario Employment Law
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About Mandatory Retirement
Is mandatory retirement legal in Ontario? For the vast majority of workers, the answer is a clear no. The practice of forcing employees to retire at a specific age, typically 65, was once common but is now illegal in most provincially regulated workplaces. This is because the Ontario Human Rights Code (OHRC) prohibits discrimination in employment on the basis of age. Critically, the OHRC provides no upper age limit for this protection, meaning you are protected from age discrimination whether you are 18 or 80.
When an employer imposes a mandatory retirement age, they are committing a form of age discrimination. This action is legally viewed as a termination of employment without cause. Consequently, an employee forced to retire is generally entitled to the same rights as any other terminated employee, including reasonable notice of termination or pay in lieu of notice under both the Employment Standards Act, 2000 (ESA) and the common law. In addition to a wrongful dismissal claim, the employee may also have a human rights claim for damages resulting from the discriminatory act.
The primary exception to this rule is if the employer can prove that the retirement age is a 'bona fide occupational requirement' (BFOR). This is an extremely difficult standard to meet. The employer must demonstrate that the age limit is rationally connected to the performance of the job, was adopted in good faith, and is reasonably necessary to accomplish a legitimate work-related purpose. Furthermore, they must prove that it's impossible to accommodate individual employees without incurring undue hardship. This exception is typically reserved for occupations where public safety is a primary concern, such as for certain firefighters or pilots, and is assessed on a case-by-case basis. Because the law in this area involves a complex interplay of human rights, employment standards, and common law, understanding your specific entitlements after being told to retire requires a careful analysis of your circumstances.
Frequently Asked Questions
Can my employer in Ontario force me to retire when I turn 65?
No, in almost all cases. Forcing an employee to retire at age 65 is a form of age discrimination, which is prohibited by the Ontario Human Rights Code. This action is treated as a termination without cause.
What is a 'bona fide occupational requirement' (BFOR) for retirement?
A BFOR is a rare exception where an employer can justify an age-based rule, like mandatory retirement. They must prove the age limit is essential for performing the job safely and effectively and that they cannot accommodate older workers without undue hardship. This is a very high legal standard to meet.
My company has a retirement policy. Is this allowed?
It depends. A policy that forces employees to retire at a certain age is generally illegal. However, a policy that outlines voluntary retirement options, pension benefits, and transition support is perfectly legal and common.
What are the deadlines if I was illegally forced to retire?
You must act quickly. You have one year from the date of the discriminatory act to file an application with the Human Rights Tribunal of Ontario. For a wrongful dismissal lawsuit to claim severance, you have a two-year limitation period from the date of your termination.
Do different rules apply to unionized employees or federally regulated jobs?
Yes, the rules can be different. Collective agreements may contain specific retirement provisions, and federally regulated industries (like banking and aviation) are governed by the Canadian Human Rights Act. These situations can be complex and may require a different legal approach.
What should I do if my manager keeps asking when I'm going to retire?
If you feel you are being pressured to retire, you should document these conversations and politely but firmly state that you are not planning to retire. If the pressure creates a hostile work environment, it may be time to consult with an employment lawyer to understand your options.
Common Scenarios
- A senior accountant is told by management that her last day will be the end of the month she turns 65, as this has always been 'company tradition'.
- A 68-year-old retail manager is excluded from strategic planning meetings and told that younger leadership is needed for the company's future, effectively pressuring her to resign.
- A university is challenged by a tenured professor after being informed they must retire at the end of the academic year, based on the university's pre-existing governing statutes.
- An airline pilot is notified that, in accordance with their collective agreement and federal aviation regulations, they must retire from flying commercial aircraft at age 60.
What You Should Know
- Do not sign any retirement or resignation documents if you are being forced out. Signing could be interpreted as you voluntarily leaving, which may forfeit your right to termination pay and human rights damages.
- Keep a detailed written record of any conversation or action related to your age or retirement, including dates, times, and specific comments made.
- If you are forced to retire, understand that this is legally a termination. You have rights to notice or pay in lieu under the ESA and common law, separate from any human rights claim.
- Be mindful of strict legal deadlines. You have one year to file a human rights claim and two years to file a wrongful dismissal lawsuit in Ontario.
- The justification for mandatory retirement is highly technical, especially in safety-sensitive roles. Seeking advice from an employment lawyer is crucial to confirm if the policy applied to you is lawful.
Featured Cases
Abramson v. Windsor-Essex County Health Unit
2006 CanLII 29277 (ON SC) · 2006-08-25Wrongful Dismissal: Employee Awarded 18 Months Notice After Mandatory Retirement Claim
A wrongful dismissal case where the plaintiff was required to retire at age 65 despite no mandatory retirement policy. The court found the defendant failed to establish such a policy and awarded the plaintiff 18 months’ salary in lieu of notice, applying common law principles of reasonable notice. The case also included a breach of employment contract claim regarding unpaid salary, which was found to be barred by the six-year limitation period. The court also addressed whether the plaintiff mitigated damages by seeking alternative employment in Ontario and British Columbia, concluding that the plaintiff took reasonable steps.
Large v. Stratford (City)
1992 CanLII 7612 (ON SC) · 1992-06-08Human Rights: Mandatory Retirement at 60 Challenged Under Ontario Code
A human rights case challenging a mandatory retirement policy at age 60 under the Ontario Human Rights Code. The court examined whether the policy constituted age-based discrimination and whether it could be justified as a bona fide occupational requirement (BFOR), considering factors such as job performance, safety, and reasonable accommodation.
Re Ontario English Catholic Teachers Association et al. and Essex County Roman Catholic School Board
1987 CanLII 4043 (ON SC) · 1987-02-03Age Discrimination: Mandatory Retirement Policy Under Charter Review
A case examining whether a school board's mandatory retirement policy at age 65 infringes on the equality rights of employees under section 15(1) of the Canadian Charter of Rights and Freedoms. The court considers whether the policy constitutes 'law' under the Charter and whether it is a reasonable limit on equality rights under section 1.
Re McKinney and Board of Governors of the University of Guelph et al. and seven other applications
1986 CanLII 2832 (ON SC) · 1986-10-15Mandatory Retirement and Age Discrimination in Universities
A constitutional challenge to mandatory retirement at age 65 under university collective agreements and pension plans, examining whether such policies violate the Charter of Rights and Freedoms and the Human Rights Code due to age discrimination.
Re Bregzis and Governing Council of the University of Toronto et al.
1985 CanLII 2198 (ON SC) · 1985-11-26Age Discrimination Case: University Mandatory Retirement Policy Challenged Under Charter
A case involving a university employee challenging a mandatory retirement policy at age 65 under section 15 of the Charter of Rights and Freedoms. The applicant sought an interlocutory injunction to prevent enforcement of the policy, but the application was dismissed. The court considered whether the policy violated equality rights and whether damages could adequately compensate the applicant for the harm caused by the policy.
Stevenson v. Air Canada et al.
1982 CanLII 1867 (ON SC) · 1982-01-19Age Discrimination: Challenge to Mandatory Retirement for Airline Pilots
A case challenging the mandatory retirement at age 60 for airline pilots under a collective agreement, alleging age discrimination under the Canadian Human Rights Act. The court considered whether the provision constitutes a bona fide occupational requirement and the balance between collective bargaining rights and anti-discrimination protections.
Stevenson v. Air Canada
1981 CanLII 4354 (ON SC) · 1981-08-31Age Discrimination: Injunction Prevents Air Canada Mandatory Retirement
A merits decision involving a challenge to a mandatory retirement policy at Air Canada, alleging age discrimination under the Canadian Human Rights Act. The court considered whether the collective agreement provision violates human rights and whether an interim injunction should be granted to prevent enforcement of the policy pending resolution by the Canadian Human Rights Commission.
Stevenson v. Air Canada
1981 CanLII 2883 (ON SC) · 1981-08-17Mandatory Retirement Discrimination: Pilot Challenges Air Canada Policy
A pilot sought an interim injunction to prevent Air Canada from enforcing a mandatory retirement at age 60, pending a determination under the Canadian Human Rights Act. The case examines whether the collective agreement provision violates human rights protections, particularly regarding age discrimination, and balances individual rights with collective agreement terms.
Re Borough of Etobicoke and Ontario Human Rights Commission et al.
1979 CanLII 1675 (ON SC) · 1979-09-20Mandatory Retirement for Firefighters and Human Rights Code Compliance
A human rights employment case involving firefighters challenging a mandatory retirement age of 60 under a collective agreement. The court examined whether this policy constitutes age discrimination under the Ontario Human Rights Code and whether it qualifies as a bona fide occupational qualification.