Mrs. Kleist, who was employed as chief physician for the pension insurance institution, was terminated pursuant to a policy requiring termination of all employees, whether male or female, upon reaching the age at which they could draw a public retirement pension. Mrs. Kleist argued that the termination policy was discriminatory because, under the pension statute, women were able to draw a pension at an age five years younger than men; thus requiring their termination five years earlier. After proceedings in the lower courts, the Austrian Supreme Court referred to the European Court of Justice the question of whether the policy constituted prohibited discrimination on the grounds of sex. The Court answered the question in the affirmative, holding that since the criterion used by such a policy is inseparable from the worker’s sex, there is a difference in treatment that is directly based on sex. Having found direct discrimination, the Court also held that the difference in treatment could not be justified by the objective of promoting employment of younger persons.