The Employment (Contractual Retirement Ages) Act 2025 (the 'Act') is a piece of Irish employment legislation that was enacted in December 2025 and came into force on 29 June 2026. 

Mandatory retirement ages continue to be topical in Ireland. Under the Act, employees, with some exceptions, who have a contractual retirement age below 66 (the current State 'pensionable age'), are provided with the right to notify their employer of their intention to work until the pensionable age, subject to the objective and reasonably justified legitimate aims of the employer.

This article provides an overview of the Act's key provisions and sets out the practical steps employers should take to ensure compliance with its requirements.

Overview 

1. Notification to the employer

An employee who does not consent to the contractual retirement age must provide written notice prior to the contractual retirement age:

• no later than three months in advance; 
• no greater than one year, in advance; and
• notice may not be given more than twice in six months.

2. Employer justification

The employer must provide a "reasoned written reply" within one month of notice. Critically, the Act requires the employer to carry out an individualised assessment of the notice given by the ‘employee concerned’. If the employer intends to enforce the contractual retirement age, the reply must be "objectively and reasonably justified by a legitimate aim" achieved through "appropriate and necessary means".

The justification of the legitimate aim should be prepared in advance and kept on file.

3. Protection from penalisation

Employees are protected from penalisation, including suspension, dismissal, demotion, and discrimination for both exercising their right to notify their employer of non-consent and enforcing their rights under the Act.

4. Claims

Employees may bring a claim to the Workplace Relations Commission (WRC) if an employer fails to comply with its obligations under the Act. The WRC may direct reinstatement, reengagement, and/or award compensation of up to 104 weeks' remuneration or €40,000, whichever is greater.

5. Offences

Failure of an employer to reply within one month, or failure to meet the justification requirements, renders an employer potentially liable to a Class A fine of €5,000, up to twelve months' imprisonment, or both. Directors, Managers and other officers who consent to the offence may be personally liable, subject to defences of due diligence and reasonable precautions.

What should employers do now

1. Comprehensive review of employment contracts

Identify contracts with retirement ages below the pensionable age to assess  the number of employees in the workforce affected by the Act. 

2. Engage in informal discussions with affected employees

This will open a dialogue to manage expectations and reduce the likelihood of disputes.

3.  Update internal policies and procedures

Align current policies and procedures to the legislative changes. This will be especially relevant to retirement and benefit policies.

4. Facilitate training and development

Employers should develop internal procedures and train managers on them to ensure the employer’s obligations under the Act are met, avoiding costs and business disruptions arising from disputes. 

The Industrial Relations Act 1990 (Code of Practice on Longer Working) (Declaration) Order 2026, also came into effect on 29 June 2026, to incorporate the Act into the Code of Practice on Longer Working (the 'Code'). The Code now contains a template for a retirement policy reflecting the current legal position under the Act which may be of assistance to employers. Employer’s ought to have regard to the Code of Practice on Longer Working when implementing a retirement in Ireland. While the Code is not legally binding, an employer’s failure to adhere to the Code is admissible as evidence before the WRC. For further information please contact our employment team who will be glad to assist.