The Minister for Enterprise, Tourism and Employment, Peter Burke, has confirmed that the Employment (Contractual Retirement Ages) Act 2025 is now in force.

The Act creates a new statutory right for eligible employees in Ireland to stay in their jobs beyond any contractual retirement age that is below the State Pension age of 66, should they choose to do so. The measure provides choice for workers and does not compel anyone to remain in employment.

Under the legislation, employees can formally notify their employer that they do not consent to retire at their contractual retirement age. To exercise the right, they must give at least three months’ notice and no more than 12 months’ notice before the intended contractual retirement date. Where a contract requires a longer notice period, the employee must give that contractual period or six months’ notice, whichever is shorter.

Because of the minimum notice requirement, the earliest contractual retirement date to which the Act can apply is 29 September 2026.

Employers are obliged to carefully consider any such notification. If an employer intends to enforce a contractual retirement age, they must reply in writing within one month, clearly set out their decision and meet the higher legal threshold introduced by the Act. In practice, this means the employer must objectively and reasonably justify the retirement by reference to a legitimate aim, and show that the means of achieving that aim are appropriate and necessary. To support implementation, the Minister of State for Small Businesses, Retail and Employment, Alan Dillon, has signed into law an updated Workplace Relations Commission (WRC) Code of Practice on Longer Working, which also takes effect on 29 June 2026. The Code provides practical guidance and clear procedures on how the new right operates, along with templates for employee notification letters and employer responses and policies. While not legally binding, the Code is admissible in legal proceedings and is an important reference in resolving disputes.

Minister Peter Burke said: "I am very pleased to announce the commencement of the Employment (Contractual Retirement Ages) Act 2025 on 29 June, which represents an important step forward in strengthening the rights of older workers in Ireland. This legislation gives employees greater choice and flexibility by allowing them to remain in employment until the State Pension age, if they wish to do so.

"This new employment right delivers on the government’s commitment in response to the Pensions Commission Recommendations and Implementation Plan."

Minister Alan Dillon added: "This new employment right will give greater choice to employees to continue working where they choose to do so. The Code offers practical, accessible guidance to support both employers and employees in navigating these changes.

"I encourage all employees and employers to familiarise themselves with the Code and the new rights it supports."

Director General of the Workplace Relations Commission, Audrey Cahill, said: "The Workplace Relations Commission was pleased to develop this updated Code of Practice following consultation with our stakeholders which provides clear and practical guidance on the operation of the Employment (Contractual Retirement Ages) Act 2025 and on longer working more generally.

"The Code is intended to support both employers and employees in understanding and applying the new statutory right to seek to continue in employment beyond a contractual retirement age, where appropriate. It also sets out clear principles in respect of employees aged 66 and over who wish to continue working. The WRC will continue to play our role in providing information and securing compliance as this new legislation comes into effect."