What is changing from 29 June 2026
The Employment (Contractual Retirement Ages) Act 2025 introduces a significant change to retirement practices in Ireland, creating a new legal right for certain employees to challenge compulsory retirement where the contractual retirement age is lower than the State pension age of 66.
The Act came into force on 29 June 2026 and will be particularly relevant for employers and employees throughout the public and private sectors with contractual retirement ages of 65 or below.
KEY CHANGE UNDER THE ACT
The Act establishes a new right allowing eligible employees to formally notify their employer that they do not consent to retire at the contractual retirement age.
Importantly, this does not mean employees must work beyond retirement age if they do not wish to. Rather, it creates a structured process where employers must actively consider requests to remain in employment.
Where an employee submits a valid notification, the employer must meet a higher legal threshold before enforcing retirement.
WHO IS ELIGIBLE?
This new right applies where:
- The employee’s contractual retirement age is 65 or lower
- The employee has completed probation
- The retirement age is not set by legislation (e.g. certain roles such as An Garda Síochána or the Defence Forces)
Employees are not covered if:
- Their contractual retirement age is 66 or higher, or
- Their retirement age is set directly by law rather than contract
HOW EMPLOYEES CAN USE THIS RIGHT
To avail of the protections under the Act, employees must submit a written notification to their employer stating that they do not consent to retirement.
The notification must be made:
- At least 3 months, and up to 1 year, before the contractual retirement date, or
- If the contract requires longer notice, the employee must give either that contractual notice or 6 months, whichever is shorter
The notification must also include the legal basis for the request, as required under section 5(1) of the Act.
Employees can only use this right on or after 29 June 2026. Due to the notice requirements, the earliest effective retirement date impacted by the Act is 29 September 2026.
EMPLOYER OBLIGATIONS WHEN A NOTIFICATION IS RECEIVED
Once a valid notification is submitted, employers must:
- Consider the request in full
- Not enforce retirement unless it can be objectively and reasonably justified
- Respond in writing within 1 month if refusing the request
Clearly set out:
- The reasons for enforcing retirement
- The legitimate aim being pursued
- Why the decision is appropriate and necessary
Where a request is accepted, the employee’s continued employment should be formally reflected in their contract and employment arrangements.
LEGAL PROTECTIONS WHERE THE ACT DOES NOT APPLY
Even where employees are not covered by the 2025 Act, protections still exist under existing equality law.
Under the Employment Equality Act 1998, discrimination on the grounds of age is prohibited. However, retirement ages may still be lawful if they are:
- Objectively and reasonably justified by a legitimate aim, and
- Achieved through appropriate and necessary means
This creates a balancing test between employer operational needs and employee rights.
ROLE OF THE WRC CODE OF PRACTICE
The Workplace Relations Commission (WRC) will publish an updated Code of Practice on Longer Working, which will provide practical guidance for both employers and employees.
This will include:
- Step-by-step procedures for notifications and responses
- Template documents for employers and employees
- Guidance on objective justification and legitimate aims
The Code takes effect alongside the Act on 29 June 2026 and will be a key reference point in practice.
HOW EMPLOYERS SHOULD PREPARE
Employers should begin preparing in advance of commencement by:
- Reviewing all contractual retirement ages within the organisation
- Updating employee handbooks and retirement policies
- Training HR teams and managers on new legal obligations
- Ensuring processes exist for handling written notifications
- Maintaining clear records of all retirement-related discussions and decisions
CONCLUSION
The Employment (Contractual Retirement Ages) Act 2025 marks a shift toward greater procedural protection for employees approaching retirement age, particularly where contractual retirement ages fall below the State pension age.
While it does not remove employers’ ability to enforce retirement, it introduces a more structured and legally demanding process, requiring clear justification and documented decision-making.
For employers and HR professionals, early preparation will be essential to ensure compliance with this important Employment (Contractual Retirement Ages) Act 2025.
