1 July 2026
The Government has confirmed that the Employment (Contractual Retirement Ages) Act 2025 will commence on 29 June 2026. The main provisions coming into effect from this date are outlined below.
In December 2025, the Employment (Contractual Retirement Ages) Act 2025 (the ‘Act’) was signed into law, introducing significant reforms to the management of contractual retirement ages in Ireland. For background on this new legislation, see our earlier analysis: Employment (Contractual Retirement Ages) Act 2025 and Employment (Contractual Retirement Ages) Bill 2025.
The Act provides that employees may request to continue working up until the state pension age (66), where the contractual mandatory retirement age stipulated by the employer is below 66. Accordingly, where an employment contract specifies a mandatory retirement age below 66, an employee may now choose to retire at that age or request to continue working until any point up to age 66.
The Act applies to employees who have completed their probationary period and whose contract of employment prescribes a mandatory retirement age that is below the State pension age. Its purpose is to ensure employees are not left without an income in the period between the termination of their employment and the commencement of their State Pension.
Under the Act, an employee who wishes to work beyond their contractual retirement age must notify their employer no less than 3 months, but no more than one year, before the date they are due to reach the contractual retirement age. Where the employer requires a notification period of more than 3 months, the employee can either adhere to the period of notice provided by the employer or provide 6 months’ notice, whichever is less.
Due to this minimum three-month notice requirement, the earliest retirement date to which the Act applies is 29 September 2026.
Where an employer receives notice from an employee requesting to continue working beyond the contractual retirement age, the employer cannot enforce the contractual retirement age unless it is objectively and reasonably justified by a legitimate aim. Any means used by the employer to enforce the contractual retirement age must be appropriate and necessary.
Where an employer elects to enforce the contractual retirement age, they must provide a reasoned written reply to the employee within one month of receipt of notification. An employer who, without reasonable cause, fails to provide an employee with a reasoned written reply shall be guilty of an offence under the Act.
The Act prohibits employers from penalising employees for exercising their right to remain in employment. Penalisation includes suspension, demotion, intimidation, loss of opportunity for promotion or a change of location of place of work.
To support implementation, an updated Code of Practice on Longer Working has been developed by the Workplace Relations Commission (WRC), which will also take effect on 29 June 2026. The Code provides practical guidance for both employers and employees, setting out clear procedures on how the new statutory right operates, and includes helpful templates such as employee notification letters and employer responses and policies. While not legally binding, the Code is admissible in legal proceedings and serves as an important reference point in the resolution of disputes.
Employees can file a complaint with the Workplace Relations Commission, if they believe there has been a contravention of the Act, such as being forced to retire at a contractual age without objective justification. An adjudication officer can decide on the complaint and may:
The Act also provides a number of criminal offences. Failure to provide an employee with a reasoned written reply may attract a fine of up to €5,000 or a term of imprisonment of up to 12 months (or both).
To support implementation, an updated Code of Practice on Longer Working has been developed by the Workplace Relations Commission (WRC), which will also take effect on 29 June 2026. The Code provides practical guidance for both employers and employees, setting out clear procedures on how the new statutory right operates, and includes helpful templates such as employee notification letters and employer responses and policies. While not legally binding, the Code is admissible in legal proceedings and serves as an important reference point in the resolution of disputes.
With the Act commencing on 29 June 2026, supported by the updated Code of Practice on Longer Working, employers should ensure their policies are aligned with the new requirements. In particular, employers should review their mandatory retirement ages and, where the retirement age is below 66, be prepared to respond to written requests from employees to remain in employment beyond the contractual age. Refusal of an employee’s request to work beyond the contractual retirement age must be communicated to the employee within one month of receiving such a request.
Employers should review and, where necessary, update their current justifications for enforcing contractual retirement ages, ensuring that any such justifications are reasoned and objective, and that the aims pursued are legitimate, appropriate and necessary. HR personnel and relevant management may require training on the impact of these changes to ensure that all requests are responded to appropriately, within the required time frame, and in a consistent and objective manner when dealing with employees seeking to work beyond their contractual retirement age.
At KPMG Law LLP, our Employment Law team led by Aoife Newton, provides comprehensive advice on all matters relating to employment contracts and the most effective strategies for employers in light of recent changes to retirement practices in Ireland. Please contact a member of the team for more information.
