THE BIGGEST change in employment law for a generation was announced last week by the government, when it unveiled proposals to tackle age discrimination head on.

Discrimination on the grounds of race, gender and disability is currently banned in the UK, but sadly discrimination on the grounds of age is not.

A recent survey by the MORI Social Research Institute revealed that age, rather than sex or race, is the most common form of discrimination in the workplace - with 38 per cent of those who had experienced some form of discrimination citing ageism as the cause.

But not for much longer, as the government is at last getting tough.

The proposals, published in a consultation paper by the Department of Trade and Industry, are designed to outlaw ageist advertising and workplace practice.

Under the new rules, employers would not be allowed to stipulate required ages for a job or prevent older employees from attending training schemes.

Employees would also be able to work until 70, if they so wished.

Whether the proposals have been introduced to help winch the government out of a pension hole or not, they are, in general, to be welcomed.

They offer much-needed protection to older employees who currently cannot claim unfair dismissal and do not have a legal entitlement to redundancy pay if they work beyond the official retirement age.

Furthermore, older employees have much to offer the labour market and should not be viewed as fodder for the scrapheap.

They have a depth of experience and an extensive skill set that can help to drive businesses forward.

At present, for example, it is estimated that age discrimination costs the economy up to £16 billion a year as people are prevented from realising their true potential.

But hand in hand with every benefit comes a series of risks.

We could see an explosion in tribunals where employees who have been dismissed for underperforming in work play the age card, when age really isn't the issue.

Firms in America are already paying out huge sums in compensation since the introduction of anti -age discrimination laws.

Estimates by employers' groups put the cost to UK businesses as high as £200 million in the first year alone.

We must also avoid a situation where employees feel they have no choice but to work until they are 70 so that they can obtain full pension benefits.

It is an issue which is not entirely clear-cut.

But the proposals are definitely a step in the right direction.