Ireland's Employment (Contractual Retirement Ages) Act 2025 comes into force today, 29 June 2026, introducing a significant new employment right that allows workers to remain in employment beyond their contractual retirement age where that age falls below the State pension age of 66, with direct and immediate implications for employer HR and employment relations practice across the country.

As reported by RTÉ, the legislation allows eligible employees to formally notify their employer that they do not consent to retire at their contractual retirement age. Currently, thousands of employees are required to retire at 65 under the terms of their employment contracts, one year before the State pension commences, leaving them without income for that period. The new law removes that obligation, giving workers the option to bridge the gap, though it does not compel anyone to remain in work.

To exercise the right, an employee must provide at least three months' notice, and no more than 12 months' notice, before their intended retirement date. Where a contract specifies a longer notice period, the employee must give that notice or six months, whichever is shorter. The earliest contractual retirement date to which the Act applies is 29 September 2026.

Once notified, employers are required to carefully consider the notification and, if they intend to enforce the contractual retirement age, must respond in writing within one month. Employers cannot require retirement unless they can objectively and reasonably justify the decision by a legitimate aim, and demonstrate that the means of achieving that aim is appropriate and necessary.

Minister for Enterprise, Tourism and Employment Peter Burke TD said the legislation advances the rights of older workers. He said: "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. This new employment right delivers on the government's commitment in response to the Pensions Commission Recommendations and Implementation Plan."

Employees who believe their rights have been breached may bring a claim before the Workplace Relations Commission (WRC). Where a claim is upheld, the WRC can order the employer to address the breach or award compensation of up to 104 weeks' remuneration or €40,000, whichever is greater. Employers who breach the Act could face a fine of up to €5,000, imprisonment of up to 12 months, or both.

Follow the full details of the new Irish retirement age legislation.