Under the proposal, employers would not be allowed to dismiss staff because they had reached the age of 65. Activists, who have long campaigned against the rule, welcomed the proposal as a "victory" against ageism.
Currently, an employer can force an employee to retire at the age of 65 without paying any financial compensation.
The only obligation on an employer is to hold a meeting with the member of staff to discuss plans at least six months before their 65th birthday. At the end of that meeting it is entirely at the discretion of the employer whether or not to terminate employment.
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