The impact of an aging workforce

18/12/2017 09:43:47

In the November 2017 Gazette, Liz Ryan, Stephen Gillick and Sarah Browne call for significant legal reform to account for Ireland’s aging workforce.

Assembly recommendations

Among other burning issues facing Ireland today, the Citizens’ Assembly considered the challenges presented by Ireland’s aging population. A large majority of its members recommended major legal changes to address this issue, including:

  • 86% believed that mandatory retirement ages should be abolished.
  • 87% recommended that the Government should introduce some form of mandatory pension scheme to supplement the State pension.
  • 96% supported the removal of an anomaly that arises when an individual must retire at 65, but is not entitled to the State pension until 66.

Mandatory retirement

While discrimination on the grounds of age is prohibited by the Employment Equality Act 1998, the legislation provided for an exception to this rule in the context of fixing retirement ages. However, ECJ decisions make it clear that the setting of mandatory retirement ages could be discriminatory on the grounds of age – unless the decision could be objectively justified.

This discrepancy was addressed by Section 10 of the Equality (Miscellaneous Provisions) Act 2015, which brought Ireland into line with the ECJ jurisprudence. European and Irish case law have provided practical examples of instances where legitimate aims were cited that led to the existence of mandatory retirement ages being objectively justified.

Older workers

Meanwhile, the age of entitlement for the State pension is increasing. It is currently 66 and will rise to 68 in 2028. This means that a person might be obliged to retire at age 65 in 2028, before applying for a means-tested Jobseekers’ Benefit for the subsequent three years.

Liz Ryan and Stephen Gillick are partners, and Sarah Browne is an associate, in the employment law and benefits team at Mason Hayes & Curran. In a joint article for the Gazette, they argue that law reform is necessary to address this, and other issues, in an Ireland where many people want – or need – to work for longer.

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