Businesses have been warned to prepare to axe older employees before they gain the right to stay on indefinitely.

The Default Retirement Age (DRA) of 65 is being scrapped and they have until March 31 to compulsorily retire employees aged 65 or over.

Changes to the law are likely to allow employees over the DFA to work as long as they wish from April 1.

Laura Claridge, solicitor Gullands, a Maidstone-based law firm, said: "Under this new regime, employees will be able to work indefinitely, unless the employer intervenes.

Employers will have three options available - not setting a contractual retirement age, setting a retirement age for the whole workforce or applying a retirement age to specific roles."

She said that employers without a contractual retirement age but later wanted to "retire" an employee, would have to go through a lengthy procedure.

Workforce and individual retirement ages would need justification.

She added: "This is something that businesses really should address early in the New Year in anticipation of the new rules and to prepare their staff - particularly older workers for a smooth handover.

"When the time comes as it would be a shame to lose all the knowledge and goodwill that has been built up over many years."