Pictured above:  Stephen Woolley, head of the commercial litigation and dispute resolution department at Robinson Solicitors in St James Court, Derby

Employers should prepare for more changes in the law governing discrimination in the workplace, with age issues looking set to dominate the agenda for the rest of the year.

Stephen Woolley, Head of the Commercial Litigation and Dispute Resolution Department at Robinsons Solicitors in James Court, Derby, said age discrimination is becoming an increasingly hot topic in employment law following a number of recent landmark cases.

Now, the focus has switched to the mandatory age of retirement, which is being reviewed as part of the Equality Act, currently making its way through Parliament.

Last month, the Equality and Human Rights Commission lent its weight to moves to totally scrap the prescribed retirement age, allowing all pensioners to work past 65 instead of being forced to give up work if their employer so required.

It claims valuable skills are being lost from the country's workforce, but Mr Woolley said the move would make things difficult for employers and employees.

He added: "The idea of scrapping the retirement age completely is something of a double-edged sword. 

"Currently, an employer can agree to retain staff aged 65 and over, where their experience and knowledge can still be used and it is quite right this should be the case as older employees often bring different but equally valuable skills to the workplace. 

"However, we must recognise that employers may wish to consider retirement for those employees who may not be able to carry on their role in the same way, provided of course, this is done fairly and correct legal procedures are followed. There is therefore a balance to be drawn." 

Baroness Margaret Prosser, Deputy Chair of the EHRC, said the current age limit is outdated because not only do most people want to carry on working past 65 but mandatory retirement is forcing able workers, with experience and skills vital for Britain's recovery, out of the jobs market. 

Mr Woolley said: "We must remember that age discrimination does not only impact upon older workers but also upon younger workers. 

"As more and more people wish to work past retirement age, there may be more cases of dissatisfaction involving younger workers who for example, could be made redundant or lose opportunities for promotion or engagement whilst older colleagues are retained.

"This is seen as a real issue to the younger generation in the current economic climate."

One recent age discrimination cases involved Derby aero engine manufacturers Rolls-Royce last year, which lost its High Court appeal after claiming that considering length of service when making people redundant - as agreed with unions - was in fact discriminatory.

And this year a 29-year-old applicant fire-fighter took the fire service to tribunal after it turned him down, saying he was too old. The service argued that physical strength, an occupational requirement for the role, declined with age and his claim was rejected.

Currently, both men and women can be forced to retire at 65, although women can claim their state pension at 60. This will rise to 65, the same age as for men, by 2020.

Last year pensioners' charities Help the Aged and Age Concern lost their court battle to end the default retirement age.

However, the judge, Mr Justice Blake, told them that he had only found in favour of the Government because it had promised to review the retirement age this year - and that it was highly likely that the mandatory retirement age would be increased some time in the future.