A leading business group has insisted that employers must retain the right to sack workers when they reach the age of 65.
According to the Forum of Private Business (FPB), government proposals to remove the Default Retirement Age would be "highly damaging" for small businesses.
Under the current rules, employers have the right to dismiss an employee once they reach the age of 65. The employer need not provide any redundancy payment or other settlement. While employers are free to keep workers on over 65 if they wish, they can end their employment with no explanation.
Under government proposals employers will no longer have the right to dismiss employees in this way. Workers will only be able to be sacked if they are no longer fit to perform the role, or if they are found to breach their contract.
FPB chief executive Phil Orford said, "By scrapping the Default Retirement Age, all the government will do is take yet more control away from business owners."
The law has been criticised by age charities and those concerned with workplace equality. These parties say the Default Retirement Age discriminates against older workers, and devalues their contribution to the economy.
A decision on the law is expected later this year.
