There are more cases of age discrimination in the workplace than of any other type of discrimination. But, to date, there is very little a victim has been able to do about it. From next month this is set to change.

The Age Discrimination Act is coming into effect on October 1. This government legislation intends to give victims of age discrimination - whether they are old or young - legal rights against an employer for the first time.

So what is age discrimination?

It is any decision taken against an employee based purely on their age. The most common examples are not employing or promoting someone because they are too old or young, having mandatory retirement ages below 65 or failing to offer training opportunities for individuals of a certain age.

How serious a problem is it?

According to Age Concern, very serious. It is hard to put an exact figure on the number of people who are affected as employers tend to cite reasons such as lack of experience or over-qualification when really they just mean too young or too old. But the charity estimates that 1.8m people aged over 55 have suffered ageism in employment.

Those affected range from people on low incomes who may struggle to find work after they hit 60 to high earners in the City or board directors who may face mandatory retirement ages. One recent example is Lord Browne, group chief executive of BP, who is being forced to retire at 62.

The DTI makes the point that ageism is not exclusive to the older generation. Younger people can also be affected, for example they could be rejected for a job because of their age rather than ability.

What are the current rights for victims of age discrimination?

Under current legislation, anyone who experiences age discrimination has absolutely no legal grounds for redress.

So what will actually change?

From October 1 it will be illegal for employers not to recruit, promote or train individuals because of their age.

So for the first time, employees will have the right to take legal action if they are discriminated against at work because of their age.

Age Concern says it should also become easier for individuals to challenge job advertisements. For example, if an individual felt an employer was hiding ageism by saying they wanted someone “dynamic” they could have a case for prosecution .

The new regulations will also ban mandatory retirement ages of below 65, unless companies can prove these are legitimate. People who are made redundant or unfairly dismissed when aged over 65 will now have greater rights. Employees will gain the right to request working beyond retirement age - 65 or higher - and employers will be obliged to consider their request.

The DTI has pledged to review all retirement ages in five years time to see whether they should be abolished altogether.

Employers will also have to give at least six months notice to employees about their intended retirement date.

Will there be any areas that are not covered?

One important exemption is that employers can still refuse to consider job applications from individuals over the age of 65. Unfortunately this means that people over 65 will remain relatively unprotected under the new law. Consumer groups are currently lobbying to get this exemption lifted, however.

Also, the government has delayed the application of the new law to some pensions schemes. The new rules were set to stop favourable final salary pension arrangements for directors and senior executives, as these supposedly discriminated against younger employees. Nearly 10m active members of company and public sector pension schemes will have to be reviewed over the next two months to see whether they fall foul of the new regulations.

Employers will still be able to provide extra benefits for employees based on length of service, for example. So policies to give, say extra holiday to workers after two years, can remain in place.

The new rules are also designed to operate within certain parameters. For example, if a theatre company is casting for the part of a child, an adult who is ruled out on the basis of age cannot take action against the company.

Why is the law changing now?

The new rules have been inspired by a European Union directive, which was launched in 2000 to put an end to age discrimination.

So what action will an age discrimination victim be able to take against their employer?

They can take their case to the Employment Tribunal. Serious claims will be heard in court and there is no cap on the amount of financial compensation the victim could be granted.

The courts can also force employers to continue to employ individuals until they are 65 and consider them for different jobs and training opportunities.

But the point is not to increase the number of legal challenges against employers but to encourage employers to take a fairer stance on age.

How do I find out more?

Age Concern is planning to produce a mini-guide over the next week that will outline employees’ rights with regards to age discrimination and give advice on how to take action. This will be available on their website, www.ageconcern.org.uk.