The Employment (Contractual Retirement Ages) Act 2025 was enacted on 16 December 2025 but commencement was delayed pending a review of the existing Code of Practice on Longer Working by the Workplace Relations Commission.

The updated Code of Practice on Longer Working (S.I. No. 246 of 2026) has now been published and will come into operation on 29 June 2026. The 2025 Act will also be commenced on that date.

The most significant change under the updated Code of Practice is the introduction of a two-track framework, distinguishing between two categories of workers:

(i) Employees approaching a contractual retirement age below 66: These employees are now covered by the 2025 Act’s consent-based regime. They have a statutory right to notify their employer that they do not consent to retire, and the employer must respond with objective justification or allow them to continue working.

(ii) Employees aged 66 and older: These workers are covered under the previous request procedure which is now set out in sections 8, 9 and 10 of the updated Code of Practice. The 2025 Act does not apply to this cohort, but they may still request to continue working past their retirement age. Any claims from these employees will be dealt with under the age discrimination framework of the Employment Equality Acts 1998 to 2021.

This distinction is critical as it affects the rights, procedures and remedies available as well as the considerations that should be undertaken by the employer. The 2025 Act provides that employees cannot pursue parallel claims under both the 2025 Act and the Employment Equality Acts.

Notification For Employees Covered by the 2025 Act

Employees must serve written notice on their employer at least 3 months (can be increased to 6 months by the employer) but no earlier than 1 year prior to the contractual retirement age.

The notice must expressly cite section 5(1) of the 2025 Act and state that the employee does not consent to retiring at the contractual retirement age. A template notification letter is included in the updated Code of Practice.

Based on the default notice period of three months, the earliest effective date for a notice will be 29 September 2026.

Employees may withdraw a notification in accordance with their contractual or statutory notice period (whichever is shorter) and may not serve more than two notifications in any six-month period. This short timeframe may present challenges for workforce management and succession planning, particularly where notice for withdrawal could be as little as one week (being the shortest statutory notice period for persons with up to 2 years service).

For Employees Aged 66 and Older Who Wish to Continue Working

Employees should make their requests no later than 3 months prior to the intended retirement date.
A follow up meeting should then be scheduled to allow the employee to advance their case, with the employer’s decision communicated as early as practicable.

For Employers Who Receive a Notice to Work Longer from an Employee Covered by the 2025 Act

An employer receiving a notification under the 2025 Act may not enforce the contractual retirement age unless it can be objectively and reasonably justified by a legitimate aim with means that are appropriate and necessary.

The key change is that the objective justification must relate to the individual employee concerned with reference to their specific role, capabilities and circumstances.

This departs from the Supreme Court’s decision in Mallon v The Minister for Justice and others (2024) that held justifying a mandatory retirement rule “does not entail an individual assessment of those subject to that rule.”

For Employers Who Receive a Notice to Work Longer from an Employee Aged 66 or Older

The Mallon principles continue to apply to persons aged 66 and over under section 34(4) of the Employment Equality Acts.
Employers may consider objective justifications based on the organisation as a whole rather than carry out an individual assessment.

What Constitutes an Objective Justification?

Examples of legitimate aims remain broadly the same between the two categories. Examples may include:

• Intergenerational fairness (allowing younger workers to progress);
• Motivation and dynamism through the increased prospect of promotion;
• Health and safety (generally in more safety critical occupations);
• Creation of a balanced age structure in the workforce;
• Personal and professional dignity (avoiding capability issues with older employees); or
• Succession planning.

The key difference is that, for employees covered by the 2025 Act, these aims must be referable to the specific employee. Health and safety, for example, cannot justify retiring an employee under 66 if their specific role is not safety critical.

Where an Employer Accepts a request to Work Longer from Employees Covered by the 2025 Act

Where a notification is accepted (or there is no appropriate objective justification), the existing contract continues in force up to the State pension age or intended retirement age.

Employers should ensure that terms and conditions of employment (particularly pension contributions, health insurance, life assurance and death in service benefits) can continue beyond the contractual retirement age.

Where an Employer Accepts a request to Work Longer from Employees Aged 66 or Older

Where a request from an employee aged 66 and over is accepted, continued employment will typically be on a post-retirement fixed-term contract with potentially different terms.

The fixed-term contract itself must be objectively justified (i.e. not based solely on the age of the employee).

Where an Employer Rejects a request to Work Longer from Employees Covered by the 2025 Act

The employer must provide a reasoned written reply within one month, setting out the objective justification applicable to the individual employee.

Failure to respond within this time or an inadequate response may render the contractual retirement age unenforceable.

Where an Employer Rejects a request to Work Longer from Employees Aged 66 or Older

The employer should communicate the grounds for the refusal in a meeting with the employee. An appeals process should also be made available.

Protections from Penalisation for Employees

The 2025 Act includes anti-penalisation provisions for employees who exercise or wish to exercise their rights. Penalisation is broadly defined and includes:

• Dismissal
• Demotion
• Suspension
• Harassment or discrimination
• Any other detriment to the employee’s terms or conditions of employment

Employers should be aware that adverse treatment connected to a notification could give rise to a separate penalisation complaint.

For employees aged 66 or older, no specific anti-penalisation provisions apply, but the Employment Equality Acts continue to protect against victimisation (i.e. adverse treatment following a discrimination claim).

Remedies for Employees Covered by the 2025 Act

Complaints may be referred to the Workplace Relations Commission within six months of the alleged contravention (extendable to twelve months for reasonable cause).

Redress under the 2025 Act includes:

• A declaration that the complaint is or is not well founded;
• An order requiring the employer to take a specified course of action, including re-instatement or re-engagement; or
• Compensation of up to 104 weeks’ remuneration or €40,000 (whichever is greater).

Remedies for Employees Aged 66 or Older

Complaints may be referred to the Workplace Relations Commission within six months from the date of the alleged contravention (extendable to twelve months for reasonable cause).

Redress under the Employment Equality Acts includes:

• An order for equal treatment
• Compensation of up to 2 years’ pay or €40,000 (whichever is greater) for discrimination
• Compensation of up to 2 years’ pay or €40,000 (whichever is greater) for victimisation
• An order for a specified person to take a specified action
• An order for re-instatement or re-engagement

Sanctions

The 2025 Act introduces criminal sanctions for failure to provide a reasoned written reply within the required period which can be a fine not exceeding €5,000, up to 12 months’ imprisonment, or both.

There are no criminal sanctions under the Employment Equality Acts.

If you’d like support reviewing your retirement policies, employment contracts or HR procedures, contact us at info@voltedge.ie or call at 01 525 2914