Ireland Lets Eligible Workers Stay Past Retirement Age From June 29

Q: With jail time a risk, what is the one mistake Irish employers must avoid when an employee refuses to retire?

Irish employers must not ignore or mishandle an employee’s formal refusal to retire. The key legal risk is failing, without reasonable cause, to give a reasoned written reply within one month after the employee notifies the employer that they do not consent to retire at their contractual retirement age. Under the Employment (Contractual Retirement Ages) Act 2025, which takes effect on June 29, this reply is not a formality. If an employer wants to insist on retirement, it must explain in writing why retiring that specific employee is objectively and reasonably justified by a legitimate aim, and why doing so is appropriate and necessary. A bare refusal or no response at all is the danger point. That failure can trigger criminal sanctions: a fine of up to €5,000, up to 12 months in prison, or both. Company officers such as directors or managers may also face liability where the offence happened with their consent or connivance. Separate workplace claims may also follow, with potential compensation of up to 104 weeks’ pay or €40,000. The new law applies only where the contractual retirement age is below 66 and is not set by law. Employees must also use the formal notice process, generally giving the contractual notice period or six months, whichever is shorter, within the statutory time window. Employers are being urged to follow the new WRC Code of Practice on Longer Working, which sets out the procedures and templates likely to be scrutinised in any dispute.

3 articles · Updated · Law Society of Ireland Gazette · Jun 22

June 29 marks the start of Ireland’s new right for eligible employees to stay in work beyond a contractual retirement age set below the state pension age of 66.
The Employment (Contractual Retirement Ages) Act 2025 lets workers refuse retirement by formally notifying employers, though the earliest retirement date it can affect is September 29 because of minimum notice rules.
The Workplace Relations Commission’s Code of Practice takes effect the same day, setting out procedures, templates and guidance for both sides; while not binding, it can be used in legal proceedings.
The measure does not force anyone to keep working and excludes employees whose retirement age is 66 or higher, as well as jobs with retirement ages fixed by law such as gardaí and Defence Forces members.