Workers could soon be able to claim compensation for being forced to retire at 65, it has been claimed.
Despite the fact that age discrimination rules introduced last year allow employees to stay on past 65, UK law also entitles employers to retire their workers at this age.
The European court of justice in Luxembourg is currently judging the legality of the current retirement in Britain, meaning a growing number of tribunals could be brought against employers, reports the Guardian.
According to Age Concern, almost a fifth of the UK population is made up of people who are of pensionable age, many of whom either need or want to keep on working.
The Employers Forum on Age said the mandatory retirement age issue is "potentially going to be very expensive and risky.
Spokesman Sam Mercer told the newspaper: "If any retirement they make between now and 2009 is potentially unlawful then we're looking at millions of pounds in compensation."