A New Era for Retirement: The Employment Bill 2025
Transforming Ireland’s Retirement Landscape
Ireland’s retirement framework is set to change significantly with the introduction of the Employment (Contractual Retirement Ages) Bill 2025. This legislation will provide employees with the right to remain in work until the State Pension Age (currently 66) even where their employment contract specifies an earlier retirement age, such as 65 or below.
As part of the Government’s broader pension reform strategy, the Bill seeks to address a key financial challenge: the potential gap between finishing work and becoming eligible for the State Pension. By enabling continued employment until pension age, it aims to strengthen financial stability and support greater flexibility for older workers.
How the New Right Works: A Clear Process
Employees who wish to work beyond their contractual retirement age will follow a formal notification process under the new legislation:
They must inform their employer of their intention to continue working.
This notice must be provided no less than three months and no more than one year before the contractual retirement date.
If an employment contract requires a longer notice period—up to a maximum of six months—this will take precedence.
The legislation also recognises that circumstances may change. Employees who initially choose to continue working can still decide to retire at their original contractual date or any later point. In such cases, they must give notice in line with either their contract or the statutory minimum notice period, whichever is shorter.
Protected Rights: Limitations on Employer Enforcement
A key safeguard within the Bill is the restriction on employers enforcing contractual retirement ages of 65 or below. This is only permitted in limited, clearly justified situations.
Where an employer intends to apply an early contractual retirement age, they must:
Provide the employee with a formal written response
Clearly outline a reasonable and objective justification for applying the retirement age in that case
This requirement ensures that retirement decisions are based on genuine organisational needs, not assumptions about age, helping to prevent discriminatory practices.
Ensuring Compliance: Employee Recourse
To give effect to these protections, the Bill establishes formal enforcement procedures. Employees who believe their rights have not been respected will have access to a structured complaints process through the Workplace Relations Commission (WRC).
This provides a clear route to resolution, helping ensure the legislation is upheld in practice.
Preparing for a New Retirement Paradigm
The Employment (Contractual Retirement Ages) Bill 2025 signals a shift in how retirement is approached in Ireland. By aligning employment rights with the State Pension Age, it recognises:
The financial realities many workers face as they near retirement
The continued contribution of experienced employees to the workplace
As the legislation progresses toward implementation, both employers and employees should become familiar with its implications. Employers may need to review and update retirement-related policies, while employees should understand their rights and the processes involved in exercising them.
This reform represents a move towards a more flexible, inclusive, and employee-focused retirement model that reflects Ireland’s evolving workforce.
If you would like guidance on how the Employment (Contractual Retirement Ages) Bill 2025 may impact your employment policies or retirement planning, the NKC team is here to help. Contact Phil at plawlor@nkc.ie.