I have signed the Commencement Order (S.I. No. 247/2026) for the Employment (Contractual Retirement Ages) Act 2025, which will come into effect on 29 June.
It will allow employees who do not consent to retire at their contractual retirement age to notify their employer that they intend to remain in their employment until they reach the State Pension age (66). This is a significant step in helping to protect employees as they approach retirement.
There is no statutory retirement age in the private sector. Retirement ages in the private sector are generally set out by means of an express or implied term in a contract of employment, an employer’s policy or staff handbook or by custom and practice.
Under the Employment Equality Act 1998 as amended, an employer may set a contractual retirement age, but only where it is objectively and reasonably justified by a legitimate aim, and where the means of achieving that aim are appropriate and necessary. Employees who fall outside the scope of the Employment (Contractual Retirement Ages) Act 2025, including those aged 66 and over, will continue to be protected by this existing legislation.
The existing Workplace Relations Commission (WRC) Code of Practice on Longer Working (S.I. No. 600/2017) provides guidance to employees in relation to longer working and is available on the WRC website. The Code of Practice provides practical guidance to employees and employers on requests to continue working beyond a contractual retirement age. An updated Code of Practice on Longer Working (S.I. No. 246/2026) will come into effect on 29 June 2026, revoking and replacing the existing Code. The updated Code will provide guidance on both the new Act and the position relating to employees who aren’t covered by the new Act who wish to continue working (including for example employees age 66 and over).
Where an employee believes their rights under the Employment Equality Act 1998 or under the Employment (Contractual Retirement Ages) Act 2025 (once it is in force) have been breached, they can make a complaint to the WRC. In general, complaints to the WRC must be made within 6 months of the alleged breach, extendable to 12 months if the complainant can demonstrate reasonable cause.