The Employment (Contractual Retirement Ages) Act 2025 came into effect on 29 June 2026, introducing an important new employment right for workers in Ireland.
The legislation gives eligible employees greater choice by allowing them to request to remain in employment beyond their contractual retirement age where that age is below the State Pension age of 66. Importantly, the Act does not require employees to continue working if they wish to retire; rather, it provides them with the option to do so.
What Does the New Legislation Mean?
Under the new Act, eligible employees may formally notify their employer that they do not consent to retiring at their contractual retirement age. This notification must be submitted at least three months before the contractual retirement date, but no more than one year in advance.
While employers may still seek to enforce a contractual retirement age, they may only do so where they can objectively and reasonably justify the retirement by reference to a legitimate aim relating to the employee concerned. They must also demonstrate that the means of achieving that aim are both appropriate and necessary.
If an employer intends to refuse an employee’s request to continue working, they must provide their reasons in writing within one month of receiving the employee’s notification.
Although the legislation does not create an absolute right to work beyond a contractual retirement age, it represents a significant strengthening of employees’ rights in this area.
Importantly, it is expected that many employees whose requests are approved under the 2025 Act will continue in employment without any change to the status of their existing contracts of employment.
New WRC Code of Practice
Alongside the legislation, the Workplace Relations Commission (WRC) has published a new Code of Practice to support both employers and employees in implementing the Act.
The Code explains how the new legislation should operate in practice and also provides guidance for employees who wish to continue working beyond the age of 66 but who fall outside the scope of the 2025 Act.
For employees who are already 66 years of age or older and wish to remain in employment, employers and employees should continue to follow the existing procedures for longer working requests set out in Sections 8, 9 and 10 of the WRC Code of Practice.
DEA Advice to Members
The DEA encourages all members to familiarise themselves with both the Employment (Contractual Retirement Ages) Act 2025 and the accompanying WRC Code of Practice to ensure they understand their rights, the notification process and the obligations placed on employers.
The DEA is committed to supporting members who wish to continue working beyond their contractual retirement age. If you have any questions about the new legislation or would like advice on your individual circumstances, please contact us at contact@dairyexecutives.ie.
As always, the DEA will continue to keep members informed of developments in employment law that impact their rights and conditions of employment.
