New employment rights allowing eligible workers to remain in their jobs beyond their contractual retirement age have officially come into effect, giving thousands of employees the option to continue working until they qualify for the State pension.
Under the new legislation, employees whose contracts require them to retire before the State pension age of 66 can choose to remain in employment beyond their contractual retirement date. The measure is intended to address the gap faced by many workers who have been required to retire at 65, leaving them without access to the State pension for up to a year.
The changes provide employees with greater flexibility but do not require anyone to continue working if they wish to retire at their existing contractual age.
The new rights apply only to workers whose contractual retirement age is below 66. They do not cover employees whose retirement age is already set at 66 or higher, nor do they apply where retirement ages are established by law, including members of An Garda Síochána and the Defence Forces.
Most public and civil servants are also unaffected by the changes, as the compulsory retirement age for those workers was increased to 70 in 2018.
To remain in employment beyond their contractual retirement age, eligible employees must formally notify their employer that they do not agree to retire. The notice must be submitted no earlier than 12 months and no later than three months before the planned retirement date.
Employers are required to consider each request carefully. If they intend to enforce the contractual retirement age, they must respond in writing within one month of receiving the notification.
The legislation also places a higher legal obligation on employers seeking to require an employee to retire. Any decision must clearly explain the reasons for refusing the request and satisfy stricter legal standards.
Under the new rules, employers can only insist on retirement if they can objectively and reasonably justify the decision. They must demonstrate that it serves a legitimate aim and that requiring the employee to retire is both appropriate and necessary to achieve that objective.
The legislation is expected to benefit thousands of workers who previously faced compulsory retirement before becoming eligible for the State pension. Supporters say the measure offers greater financial security and flexibility, while also recognising the growing number of people who wish to remain active in the workforce beyond traditional retirement ages.
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