Important Legal Update: New Retirement Age Rules for Employers Take Effect on 29 June 2026
Updated: Jul 10
From 29 June 2026, employers in Ireland will face significant new obligations when managing contractual retirement ages. The Employment (Contractual Retirement Ages) Act 2025 introduces a new statutory right for eligible employees to remain in employment until the State Pension age of 66, unless an employer can objectively justify enforcing a lower contractual retirement age.
For many employers, particularly those with a mandatory retirement age of 65, now is the time to review employment contracts, retirement policies and internal procedures to ensure compliance.
What is changing?
Until now, employers could generally rely on a contractual retirement age provided it could be objectively justified under equality legislation.
The new Act strengthens employees' rights by introducing a formal statutory process. Employees whose contractual retirement age is below the State Pension age can notify their employer that they do not consent to retiring at that age.
This does not abolish mandatory retirement ages. However, it means employers will need to carefully assess whether enforcing a contractual retirement age is objectively justified in each case.
Which employees are covered?
The legislation applies where:
The employee has a contractual retirement age below 66.
The employee has completed any applicable probationary period.
The employee is not excluded under specific statutory provisions (for example, where a maximum retirement age is set by law).
How does the process work?
If an employee wishes to continue working, they must notify their employer in writing that they do not consent to retiring.
The notification must generally be submitted:
At least three months before their contractual retirement date.
No more than one year before that date.
Where the employment contract requires a longer notice period, that contractual period applies up to a maximum of six months.
What must employers do?
Once a valid notification is received, employers must respond in writing within one month.
The response should either:
Confirm that the employee may remain in employment; or
Explain why the employer intends to enforce the contractual retirement age, setting out the legitimate business reasons relied upon and why retirement is objectively and reasonably justified.
Failure to respond appropriately can expose an employer to Workplace Relations Commission (WRC) claims and, in certain circumstances, criminal penalties for failing to provide a reasoned written reply.
What does "objective justification" mean?
The Act does not prevent employers from having mandatory retirement ages.
However, employers must be able to demonstrate that requiring retirement serves a legitimate aim and that the retirement age is an appropriate and necessary way of achieving that aim.
Examples may include:
Health and safety requirements
Workforce planning and succession management
Maintaining operational effectiveness
Intergenerational fairness
Each case should be assessed individually, with evidence supporting the employer's decision.
What should employers do now?
With the legislation now in force, employers should:
✔ Review contracts of employment and retirement clauses.
✔ Update retirement and longer working policies.
✔ Familiarise managers and HR teams with the new notification process.
✔ Ensure requests are handled consistently and within the statutory time frames.
✔ Review the updated WRC Code of Practice on Longer Working and align internal procedures accordingly.
How can we help?
The new legislation represents one of the most significant changes to retirement practices in recent years. Employers who fail to update their procedures may face legal risk, employee relations issues and costly WRC claims.
At Emerald HR, we can help you:
Review employment contracts
Update retirement and longer working policies
Train managers on handling requests
Ensure your organisation is compliant with the new legislation
If you'd like support preparing your business for these changes, get in touch with our HR team today.
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