22nd June 2026
The Minister for Enterprise, Tourism and Employment, Peter Burke TD, has announced that the Employment (Contractual Retirement Ages) Act 2025 will come into effect on 29 June 2026, introducing a significant new employment right for workers in Ireland.
The legislation allows eligible employees to choose to remain in employment beyond their contractual retirement age, where that age is below the State Pension age of 66. Importantly, the Act gives employees choice, it does not require anyone to stay in work if they prefer to retire.
The new right will allow employees to formally notify their employer that they do not consent to retire at their contractual retirement age.
To do so, they must provide:
- at least 3 months’ notice, and
- no more than 12 months’ notice before the intended retirement date
Where a contract specifies a longer notice period, employees must give that notice or 6 months (whichever is shorter).
Due to the minimum notice requirement, the earliest contractual retirement date the Act can apply to is 29 September 2026.
Employers are required to carefully consider any notification made under the Act.
Where an employer intends to enforce a retirement age, they must:
- respond in writing within one month
- clearly set out the decision and ensure that it complies with the higher legal threshold set out in the Act
To support implementation, the Minister of State for Small Businesses, Retail and Employment, Alan Dillon TD, has signed into law an updated Code of Practice on Longer Working, developed by the Workplace Relations Commission (WRC). This will also take effect on 29 June 2026.
The Code provides:
- practical guidance for employers and employees
- clear procedures on how the new right operates
- templates for:
- employee notification letters
- employer responses and policies
While not legally binding, the Code is admissible in legal proceedings and serves as an important reference in disputes.
Minister Peter Burke TD said:
“I am very pleased to announce the commencement of the Employment (Contractual Retirement Ages) Act 2025 on 29 June, which represents an important step forward in strengthening the rights of older workers in Ireland. This legislation gives employees greater choice and flexibility by allowing them to remain in employment until the State Pension age, if they wish to do so.
“This new employment right delivers on the government’s commitment in response to the Pensions Commission Recommendations and Implementation Plan.”
Minister Alan Dillon TD added:
“This new employment right will give greater choice to employees to continue working where they choose to do so. The Code offers practical, accessible guidance to support both employers and employees in navigating these changes.
“I encourage all employees and employers to familiarise themselves with the Code and the new rights it supports.”
Director General of the Workplace Relations Commission, Audrey Cahill, said:
“The Workplace Relations Commission was pleased to develop this updated Code of Practice following consultation with our stakeholders which provides clear and practical guidance on the operation of the Employment (Contractual Retirement Ages) Act 2025 and on longer working more generally.
“The Code is intended to support both employers and employees in understanding and applying the new statutory right to seek to continue in employment beyond a contractual retirement age, where appropriate. It also sets out clear principles in respect of employees aged 66 and over who wish to continue working. The WRC will continue to play our role in providing information and securing compliance as this new legislation comes into effect.”
ENDS
Notes to editors
Employment (Contractual Retirement Ages) Act 2025
This Act was signed into law on 16 December 2025 and will commence on 29 June 2026. The purpose of this Act is to provide a new employment right to allows employees to notify their employer that they do not consent to retire at their contractual retirement age and to remain in their employment until they reach the State Pension age (currently 66).
Pensions Commission Report
The Commission on Pensions was established on foot of a 2020 Programme for Government commitment to “to examine sustainability and eligibility issues with State Pensions and the Social Insurance Fund”. In its Terms of Reference, the Commission was also asked to consider the issue of retirement ages in private employment contracts that are set below the State Pension age. In September 2022, in response to the Pensions Commission Recommendations and Implementation Plan, Government committed to introduce legislation which will allow, but not compel, an employee to stay in employment until the State Pension age.
Who is eligible
This new employment right applies to employees who have a contractual retirement age of 65 or under and have completed their probation. To avail of this new employment right, employees must first notify their employer in writing that they do not consent to be retired.
They must do this:
- at least 3 months but not more than one year before their contractual retirement date, or
- if their contract requires a longer notice period than 3 months, they must give either this amount or 6 months' notice, whichever is shorter
Considering the minimum notification period of 3 months, a contractual retirement date of 29 September 2026 is the earliest to which the Act applies. The 2025 Act does not apply to employees with a retirement age of 66 or higher, or if their retirement age is set by law (for example, An Garda Síochána, Defence Forces). Such employees continue to be protected under existing employment equality legislation.
What employers must do when an employee notifies under the 2025 Act
Employers must consider any notifications received under the 2025 Act. This new law creates a higher legal threshold if they propose to enforce the contractual retirement age. Employers cannot require an employee to retire unless they can justify this decision. If they decide an employee must retire, the employer must:
- reply in writing within 1 month
- explain the reasons for the decision to enforce the contractual retirement age
- objectively and reasonably justify the retirement of the employee concerned by a legitimate aim and that the means of achieving that aim is appropriate and necessary
Code of Practice on Longer Working
This Code of Practice was developed by the Workplace Relations Commission and sets out how the 2025 Act operates in practice for both employers and employees. It includes key information for employees approaching a contractual retirement age below the qualifying age for the State Pension who wish to continue in employment. It also contains information relating to workers who are aged 66 and older who wish to continue working. Practical templates for available in the Code of Practice include sample company policy documents and templates for notification letters. Codes of Practice published by the WRC aim to simplify matters but are not legally binding. However, Codes of Practice are admissible in evidence in proceedings before a court, the Labour Court or an adjudication officer.
Further information
Employment (Contractual Retirement Ages) Act 2025: What is changing
Employment (Contractual Retirement Ages) Act 2025
Code of Practice on Longer Working: Irish Statute Book - SI No 246 of 2026 (PDF)
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