In March 2024 Government approved the drafting of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024, which will implement a key commitment included in the Government’s response to the Pensions Commission Recommendations and Implementation Plan.
The purpose of the Bill is to align mandatory retirement ages in employment contracts with the State Pension age, age 66, where an employee does not consent to the mandatory retirement age. This element of consent reflects the fact that many employees may want to retire at the contractual retirement age.
Since Government gave approval to draft this Bill in March and the General Scheme was referred to the Joint Oireachtas Committee for pre-legislative scrutiny. The Committee published its report on 24 May.
The General Scheme was also referred to the Office of the Parliamentary Counsel for drafting, which is underway. Officials are working closely with drafters to ensure that this will be a robust and well-balanced legislative provision which facilitates any worker who wants to continue in employment until they can first access the State Pension. It also makes necessary provision for the limited cases where a lower retirement age may be required.
It is important that the Bill brought forward will be acceptable and workable for stakeholders and that it is carefully drafted to ensure any unintended consequences are avoided.
Once drafted, it is anticipated that the Bill will commence its passage through the Houses of the Oireachtas during the Autumn session.