After passing through the final stages of debate in the Seanad, the Employment (Contractual Retirement Ages) Act 2025 was signed into law by the President of Ireland on 16 December 2025.
The Act will not come into effect until a commencement order has been issued, which is expected to happen later in the year.
What is the Employment (Contractual Retirement Ages) Act 2025?
The Employment (Contractual Retirement Ages) Act 2025 will facilitate employees who wish to remain in employment until the State Pension Age (66), even if the retirement age set out in their employment contract is below this threshold.
The Act is not intended to compel employees to remain in the workforce for longer. Instead, it is aimed at facilitating those employees who do wish to work until the State Pension Age. For employees who are happy to retire at their company’s contractual retirement age, this legislation will not impact them.
How will the Employment (Contractual Retirement Ages) Act 2025 impact employees?
If an employee does wish to work until they are 66, beyond their company’s contractual retirement age, they will be able to notify their employer in writing that they do not consent to retiring at that age.
This must be done at least three months, and less than one year, before the employee’s contractual retirement age.
Under the Act, the employee will also be protected from penalisation arising from their decision to work past the contractual retirement age. For example, employers will be prohibited from suspending, dismissing, or demoting the employee because of their decision to exercise this employment right.
How will the Employment (Contractual Retirement Ages) Act 2025 impact employees?
Once an employee has notified their employer that they wish to work beyond the contractual retirement age, the employer must review and consider the request. They can choose to decline, but they must respond in writing within one month and provide a reasonable justification for their decision.
It is expected that the Workplace Relations Commission (WRC) will produce a Code of Conduct with further guidance for employees and employers on what constitutes a reasonable justification.
Before the Act comes into effect, businesses will need to adjust their HR policies and documentation to comply with the new legislation. Employment contracts and retirement policies will need to be reviewed and adapted, and any changes made will need to be communicated clearly to staff.
Secondly, businesses should conduct a payroll risk assessment to determine whether this legislation is likely to affect their staffing costs, either now or in the future. Changes may need to be made to the business’s budget if staff costs are likely to rise.
