The Employment (Contractual Retirement Ages) Act 2025 Will Change – The Employment (Contractual Retirement Ages) Act 2025 was enacted in December 2025. At the time of writing, no commencement date has been set, but one is expected following publication of a Code of Practice anticipated later this year.
Once commenced, the Act will introduce a more structured framework for employees whose contractual retirement age is below the State Pension age of 66. In such cases, employees will be entitled to formally notify their employer that they do not consent to retire, typically between 3 and 12 months in advance of their contractual retirement date.
Employers will then be required to provide a written, reasoned response within one month. Importantly, retirement can only be enforced where it is objectively and reasonably justified in respect of the individual employee, marking a shift away from reliance on general or blanket retirement policies.
The Act also introduces enhanced protections, including anti-penalisation provisions and access to the Workplace Relations Commission, with potential remedies of up to 104 weeks’ pay or €40,000.
Overall, the legislation adds a new statutory layer to existing equality law and will require employers to adopt more robust and well-documented approaches to managing retirement.
If you require further support or advice relating to HR, please do not hesitate to contact us at hrsolutions@nfpireland.ie / (066)7102887.
~ Caroline Reidy, Head of NFP HR Solutions Ireland Limited, HR and Employment Law Specialist