UK Government announces plans to axe fixed retirement age rule

The UK Government's announcement of its plans to axe the default retirement age rule from October 2011 has been welcomed by businesses and activists who have long campaigned against the rule.

The end of the fixed retirement age rule will allow people to stay in their jobs beyond the age of 65. At present, an employer can force a worker to retire at the age of 65 without paying any compensation.

The government has plans to announce on Thursday the beginning of a consultation process about the axing the rule. Given that an employer must issue 6-month notice before compelling a worker to retire at the age of 65.

The changes could take force from 6th of April 2011. After that date, no employer will be able to force a worker to retire on the grounds of age.

The charity Age UK, which has long campaigned against the default retirement age rule, has welcomed the announcement.

Speaking on the development, a spokesperson for the Age UK group said, "It is a massive win for hundreds of thousand of employees who are at risk of being forced out of their jobs."

As people live longer, healthier and more active lives, the government believes that the scrapping of the rule will encourage people to work for longer.