Employers will be required to give at least six months’ notice and inform workers of their rights to appeal if they want to force staff to retire at the age of 65, the government is expected to propose this week.
Age discrimination laws are due to come into force in autumn 2006.
Organisations that fail to follow proper procedures would leave themselves open to compensation claims at employment tribunals, reports the Financial Times.
But Alan Johnson, the trade and industry secretary, is expected to retain rules allowing employers to force workers to retire at 65.
Under the government’s proposals, to be published in a consultation paper, employers would have a duty to reconsider retirement decisions if requested by workers aged 65 and over.
But if they decide to stick with their decisions, they would not have to reveal their reasons.
Age Concern, director general, Gordon Lischman called on government to ensure employers give at least one year’s notice before they are out of a job. “This would make a difference to older workers, giving them a chance to take stock, plan ahead and look for other work if they need to.”