Yogi Fell, one of three complainants, tends to her horses on Monday. (CBC)

The University of Prince Edward Island has been ordered by the P.E.I. Human Rights Commission to rehire three employees who were forced to retire in 2005.

The commission ruled in February that the university's mandatory retirement policy was discriminatory.

Last week, the group ordered the university to reinstate Thomy Nilsson, Richard Wills and Yogi Fell, and pay each complainant for loss of income and damages.

The commission also ordered UPEI to cease its policy of mandatory retirement, something the university had continued despite losing its case.

Gary Bradshaw, UPEI's vice-president of finance and facilities, said in a release that the university intends to comply with the order.

He added that doing so will cost the university more than $1 million.

"The UPEI Senior Management Group will be meeting early this week to consider the measures that will be necessary to address this financial challenge," Bradshaw said in the statement, which was posted on the university's website.

"Restrictions on hiring and on discretionary expenditures are anticipated."

After the provincial Human Rights Commission's ruling in February, UPEI appealed the decision to the courts. The case is ongoing.

Wayne Peters, past president of the UPEI Faculty Association, said the university could cut costs by abandoning its appeal.

"It's with a little bit of lack of credibility, I think, that the university argues some financial woes here, when on the side they're continuing to spend significant university resources to fight a legal battle," Peters said Monday.

Jobs reinstated

Fell, who worked in the shipping department at the Atlantic Veterinary College, said she's looking forward to getting back to work after years of forced retirement.

"I think what's exciting about it all is the fact that the system works for the little guy, or the little gal," she said.

Fell expects to receive nearly $85,000 from the university for loss of income.

She said that will go toward paying down her bank loan.

Nilsson, a psychology professor, and Wills, a professor in sociology and anthropology, also filed complaints when they were forced to retire at age 65 in 2005.