New law to allow people to work beyond employer’s retirement cut-off until State Pension age of 66

A NEW LAW will allow people to keep working beyond their employer’s retirement cut-off, but only until the State Pension age of 66.

Minister for Employment Peter Burke has announced that the Employment (Contractual Retirement Ages) Act 2025 will come into effect on 29 June.

It will allow eligible employees to choose to remain in employment beyond their contractual retirement age, where that age is below the State Pension age of 66.

This new employment right applies to employees who have a contractual retirement age of 65 or under and have completed their probation.

A Department spokesperson noted that the new law gives employees choice and does not require anyone to stay in work if they prefer to retire.

Rather, it will allow people to formally notify their employer that they do not consent to retire at their contractual retirement age and that they wish to remain in employment until they reach the State Pension age.

To do so, they must provide at least three months’ notice, and no more than 12 months’ notice before the intended retirement date.

Due to the minimum notice requirement, the earliest contractual retirement date the Act can apply to is 29 September.

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Where an employer intends to enforce a retirement age, they must respond in writing within one month, and clearly set out the decision and ensure that it complies with the higher legal threshold set out in the Act.

Employers cannot require an employee to retire unless they can justify this decision.

An updated Code of Practice on Longer Working, developed by the Workplace Relations Commission, has been signed into law to support implementation of the new Act.

The Code, which will also take effect on 29 June, provides clear procedures on how the new right operates and also provides templates for employee notification letters, as well as employer responses and policies.

Burke said the new law “represents an important step forward in strengthening the rights of older workers in Ireland”.

“This legislation gives employees greater choice and flexibility by allowing them to remain in employment until the State Pension age, if they wish to do so,” he added.

Meanwhile, Minister of State for Small Businesses, Retail and Employment Alan Dillon remarked that the updated Code “offers practical, accessible guidance to support both employers and employees in navigating these changes”.

The director general of the WRC, Audrey Cahill, added that the Code will “support both employers and employees in understanding and applying the new statutory right to seek to continue in employment beyond a contractual retirement age, where appropriate”.

The Act does not apply to employees with a retirement age of 66 or higher, or if their retirement age is set by law, such as for members of An Garda Síochána or the Defence Forces.

Such employees continue to be protected under existing employment equality legislation.

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