Legislation Update – Retirement Age Changes to Commence on June 29th

The commencement order for the Employment (Contractual Retirement Ages) Act 2025 (the Act) has been published and confirms that 29^th June 2026 is the date the legislation comes into operation.

The purpose of the Act is to provide that an Employee whose contract of employment specifies a retirement age that is below the State pension age (currently 66) may notify their Employer that they do not consent to retire at the contractual retirement age.

Consent-Based Retirement Age

Under this legislation, an Employee whose contract of employment specifies a retirement age that is below the State pension age (currently 66) may notify their Employer that they do not consent to retire at the contractual retirement age.

Objective Justification

An Employer who receives a written notification may not enforce the contractual retirement age unless they can objectively and reasonably justify, as a legitimate aim, the retirement of the Employee concerned.

The means of achieving that legitimate aim must be appropriate and necessary.

Where the Employer proposes to enforce the contractual retirement age for an Employee, notwithstanding the Employee’s written notification, the Employer must give the Employee a written reasoned reply within one month.

Next Steps

As the Act impacts the Workplace Relations Commission’s Code of Practice on Longer Working, it is anticipated that a revised Code of Practice will be published before the legislation comes into operation on 29^th June.

Should you require specific advice and guidance, the experienced Consultants in Adare Trusted People Partners would be happy to discuss and support you.

For further information, please contact Neil McCormack at nmccormack@adarehrm.ie today.