Retirement-age change to take effect
Legislation that allows workers to remain in employment beyond their contractual retirement age will come into effect on 29 June.
The law is being supported by a Code of Practice on Longer Working, developed by the Workplace Relations Commission (WRC), which will also take effect on the same date.
The Employment (Contractual Retirement Ages) Act 2025 allows eligible employees to choose to remain in work beyond their contractual retirement age, where that age is below the State pension age of 66.
Choice
The Department of Enterprise, Trade and Employment says that the act gives employees choice and does not require anyone to stay in work if they prefer to retire.
Workers will be able to formally notify their employer that they do not consent to retire at their contractual retirement age.
To do so, they must provide:
- At least three months’ notice, and
- No more than 12 months’ notice before the intended retirement date.
Where a contract specifies a longer notice period, employees must give that notice or six months (whichever is shorter).
Due to the minimum notice requirement, the earliest contractual retirement date the act can apply to is 29 September.
‘Clear procedures’
The WRC code provides practical guidance for employers and employees, as well as clear procedures on how the new right operates.
It also includes templates for employee-notification letters, employer responses, and policies.
The department points out that, while not legally binding, the code is admissible in legal proceedings and serves as an important reference in disputes.
Minister Peter Burke said that the legislation represented “an important step forward in strengthening the rights of older workers”.
Minister of State Alan Dillon urged all employees and employers to familiarise themselves with the WRC code and the new rights it supports.
The act does not apply to employees with a retirement age of 66 or higher, or those whose retirement age is set by law, such as gardaí and members of the Defence Forces.