A challenge brought by the charities Age Concern and Help the Aged in the case of Heyday had been overruled in the High Court by Mr Justice Blake, who found that the Default Retirement Age introduced by the government in 2006 did comply with an EC Directive against age discrimination.
This means that in the UK, a worker can see their employment end at the age of 65 without any redundancy payment - even if they do not want to retire.
Employees have the right to request to continue working beyond the date of retirement, but the employer can refuse the request and the law does not require them to give any reason for that decision.
An employer can also refuse to recruit anyone over the age of 65.
Neil Andrews, Employment Specialist at local law firm Coles Miller Solicitors says, "This comes as a major relief to employers because had the ruling gone the other way they would no longer be able to insist people retired at 65".
However, Mr Justice Blake did say that there was a "compelling case" for a change in the law, and the government has announced it is bringing forward a review of the compulsory retirement age to 2010. Charities and campaigners believe that this will eventually lead to a change in the rules.
Source: BBC News website
As always please feel free to contact Neil Andrews for further information or with any employment queries on 01202 673011.