Business groups accused ministers of "ignoring" industry concerns over removing the right to retire someone at 65 in just three months' time, claiming businesses were not prepared for such a dramatic law change.
The CBI and manufacturers' organisation EEF had called for the Government to delay ditching the retirement age, claiming a number of unresolved practical issues would lead to a rise in age discrimination claims.
Experts now fear that businesses will scramble to retire any employees approaching 65 before April 6 to avoid the threat of litigation when asking workers about retirement after that date. Lawyers have already reported an increase in companies retiring older workers after the Government's consultation on the matter, published last autumn.
But the Department for Business (BIS) defied industry pleas to put back scrapping the retirement age to allow people the "freedom to work for longer". About a third of Britons would work past 65 if they could, BIS said. Employment minister Edward Davey also played down the changes by stating companies could still justify having a retirement age provided they had sound business reasons. Air traffic controllers and police officers are commonly cited as examples of when it could be legitimate to retire someone at a fixed age.
But businesses hit back, claiming so-called "objective justification" was limited and complex. Neil Carberry, head of employment at the CBI, said: "Objective justification creates a legal minefield which makes employers wary of using it."
He said Acas guidance published on Thursday to help employers operate without the retirement age was "too little, too late", adding: "We're disappointed that the Government has decided to press ahead with what is a very short timescale. Companies need to be able to confidently manage people as they reach the end of their career. But the Government has not moved to protect [from litigation] retirement conversations between employers and individuals."
The EEF claimed the changes had been "rushed through" and would make it harder for companies to create jobs, plan staffing needs and would provoke costly claims. Steve Radley, director of policy, said: "This is bound to create considerable legal problems and uncertainty for companies."
The Institute of Directors agreed, branding the decision a "mistake".
However, companies will not have to pay pension benefits or private medical insurance once a worker reaches the state pension age, now set to rise to 66 for men and women by 2020, the Government said. About 850,000 people aged 65-plus work in the UK.
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