Retirement Age Reform: What Irish Employers Need to Do Now
From 29 June, the employment landscape in Ireland has changed significantly with the introduction of the Employment (Contractual Retirement Ages) Act 2025 and the WRC code of Practice on Longer Working.
For many employers, this is not just a policy update, it’s a fundamental shift in how retirement is managed in practice.
What’s changing?
The new legislation introduces a statutory 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 can now formally notify their employer that they do not consent to retire, triggering a structured process that employers must follow.
A higher bar for employers
This change raises the legal threshold significantly:
- Employers must consider every request to remain in employment.
- If seeking to enforce retirement, the employer must:
o Provide a reasoned written response within one month.
o Demonstrate objective and reasonable justification, supported by a legitimate aim.
In practice, this means retirement decisions must now be evidence-based, individualised and defensible.
A structured process is now required
Employees must submit written notice at least 3 months, but no more than 12 months, before their contractual retirement date, confirming their intention not to retire. If the employee’s contract requires a longer notice period than 3 months, they must provide either this amount or 6 months’ notice, whichever is shorter. Employers must then engage with the request and cannot simply rely on contractual terms regarding retirement age.
What this means for employers
Many organisations are not yet prepared for this shift. Key risk areas include:
- Outdated retirement clauses
- Lack of a formal, structured, decision-making process in this area
- Inconsistent handling of requests
- Insufficient documentation and justification
The reality is simple: “We’ve always done it this way” will not be sufficient.
Practical steps to take now
Before the legislation comes into force, employers should:
- Review employment contracts and retirement clauses
- Implement a clear retirement request process
- Train managers on handling conversations and decisions
- Prepare template correspondence (employee and employer)
- Document objective justification criteria
Final thought
This is not about removing retirement, it’s about how employers justify and manage it.
Handled well, it creates an opportunity to:
• Retain experience
• Improve workforce planning
• Strengthen employer brand
Handled poorly, it creates real legal and reputational risk.
We are supporting clients with policy reviews, template documentation, and manager training to ensure full compliance. Contact the Orbitus team at [email protected] or 066 71 69033.
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