Government Publishes New Bill on Contractual Retirement Ages

The Government has published the new Employment (Contractual Retirement Ages) Bill 2025 (hereinafter referred to as the “Bill”). This Bill is still making its way through Dail Eireann and is yet to be enacted, however it is prudent for employers to familiarise themselves with the proposed changes.

The new Bill provides that employees whose contract of employment specifies a retirement age below the state pension age (currently age 66) may notify their employer that they do not consent to retire at that age. This notification must be provided not less than 3 months and not more than one year prior to the contractual retirement date. The new Bill does not apply to employees who have not completed their probation period.

On receipt of this notification, the employer must not enforce the contractual retirement age before providing the employee with a “reasoned written reply” setting out their justification for enforcing the contractual retirement age. In line with existing law on mandatory retirement ages, the retirement of the employee at the contractual retirement age must be objectively and reasonably justified by a legitimate aim, and the means of achieving that aim must be appropriate and necessary. The Bill also provides protection for employees from penalisation for exercising their rights under this new Bill.

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