The change in policy will create new rights for employees looking to stay in their careers for longer, as well as bring in new legal and operational obligations for employers.
This past week (commencing 29 June), the Department of Enterprise, Tourism and Employment brought into effect the Employment (Contractual Retirement Ages) Act 2025, which introduces significant new rights for employees in Ireland and also places new legal restrictions and responsibilities on employers.
The new rules mean that eligible employees, who wish to do so, can now choose to remain employed at their place of work for a period of time beyond their contractual retirement age, where that age is below the State Pension age of 66.
The eligible employee can retire as scheduled if that is their choice and if they elect to stay on, they must formally notify their employer of their plans at least three to six months in advance.
The employer will be expected to consider any notification made under the new act and if they intend to compel retirement at a certain age, there are criteria to be met – namely, they have to respond to a notification within one month, clearly establish the basis for the decision and ensure that it is in line with the higher legal threshold set out in the act.
