The Employment (Contractual Retirement Ages) Act 2025 creates a new employment right that allows eligible employees to notify their employer that they do not consent to retire at the contractual retirement age where this is lower than the State pension age of 66. Employees are not obliged to remain in employment beyond their contractual retirement age if they do not wish to do so.
Employers must consider any notifications received under the 2025 Act. This new law creates a higher legal threshold for employers if they propose to enforce the contractual retirement age.
The Act comes into force from 29 June 2026.
Who is eligible
Some employment contracts have set contractual retirement ages of 65 or under. If this applies to you (and you have completed your probation), then you are eligible for this new right.
If your retirement age is 66 or higher, or if it is set by law (for example, An Garda Síochána, Defence Forces), then you are not eligible for this new right.
The Workplace Relations Commission’s (WRC) updated Code of Practice on Longer Working will provide guidance to help employees and employers understand how this new employment right works in practice. It will contain key practical information including templates for employers and employees to use. This Code of Practice is available on Irish Statute Book - SI No 246 of 2026 (PDF) and takes effect from 29 June 2026.
How do employees avail of this right
If you want to avail of this new right, you must notify your employer in writing that you do not consent to be retired.
You must do this:
- at least 3 months but not more than one year before your contractual retirement date, or
- if your contract requires a longer notice period than 3 months, you must give either this amount or 6 months' notice, whichever is shorter
You must also include the legal basis for your notification, as set out in section 5(1) of the Employment (Contractual Retirement Ages) Act 2025.
You can avail of this new right on or after 29 June 2026. Considering the minimum notification period of 3 months, a contractual retirement date of 29 September 2026 is the earliest to which the Act applies.
Detailed guidance will be provided in the WRC Code of Practice, as well as templates for notifying your employer.
What protections are there if employees are not covered by the 2025 Act
You are protected by existing employment equality legislation, which prohibits discrimination on nine grounds including age. Therefore, the termination of employment because of age could be construed as discrimination under the legislation. Section 34(4) of the Employment Equality Act 1998 states as follows:
“(4) Without prejudice to subsection (3) it shall not constitute discrimination on the age ground to fix different ages for the retirement (whether voluntary or compulsorily) of employees or any class or description of employees if—
(i) it is objectively and reasonably justified by a legitimate aim, and
(ii) the means of achieving that aim are appropriate and necessary.”
The WRC Code of Practice on Longer Working will provide key guidance for you if you wish to work longer and are 66 or over or are otherwise not covered under the 2025 Act.
What employers must do when an employee notifies under the 2025 Act
You must consider any notifications received under the 2025 Act. This new law creates a higher legal threshold if you propose to enforce the contractual retirement age.
You cannot require an employee to retire unless you can justify this decision.
If you decide an employee must retire, you must:
- reply in writing within 1 month
- explain the reasons for the decision to enforce the contractual retirement age
- objectively and reasonably justify the retirement of the employee concerned by a legitimate aim and that the means of achieving that aim is appropriate and necessary
Guidance will be provided in the WRC Code of Practice, as well as a template policy guideline document for a business.
Where you accept an employee’s notification request, arrangements should be made to reflect the employee’s continuation in employment in their contract of employment.
How employers can prepare
You may wish to:
- ensure you are familiar with current contractual retirement ages within your organisation
- update procedures manuals / employee handbooks to reflect the new procedures around employee notifications and responses in line with the new legislation
- acquaint yourself with the requirement for objective justification and using means that are appropriate and necessary to achieve legitimate aims in enforcing retirement policy in an organisation
- consider providing training to HR or line managers on their new obligations
- maintain good records from engagements with employees on notifications as well as any consultations or advice sought