The Trades Union Congress (TUC) has insisted that advice issued by an advocate general from the European court of justice on the issue of forced retirement is "disappointing" for employees.
Campaigners from an arm of the charity Age Concern had launched a legal battle to scrap compulsory retirement at the age of 65, insisting it breaches EU equality requirements.
But the advocate general rejected the claim, saying that discrimination on the grounds of age can be justified in certain circumstances.
Commenting on the ruling, TUC general secretary Brendan Barber said it is "hugely disappointing" for those employees who want or need to carry on working post-65.
"It makes no sense that we have laws in the UK that aim to remove age discrimination, but include a get-out clause for employers who want to kick people out when they reach 65, regardless of whether or not they are doing their job well," he remarked.
According to Business Link, compulsory retirement below the age of 65 is unlawful unless employers can objectively justify their decision.