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From June 29 a change in employment law will allow thousands of Irish workers to ask to stay in their jobs until they reach the State pension age of 66, rather than leave at a contractual retirement date. The measure is intended to stop people being obliged to retire before they can access State pension payments.
Who is affected and what can they do?
The new rules apply mainly to employees whose contracts currently require retirement before the State pension age of 66. Workers whose retirement age is already 66 or older are not affected. Nor does the change alter retirement terms for roles where the retirement age is set by other laws.
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Under the legislation, an employee approaching their contractual retirement date can notify their employer that they wish to remain in employment until they become eligible for the State pension. Employers must consider such requests rather than automatically enforcing the contractual retirement date.
How employers must respond
If an employer decides not to approve a request to continue working, they are required to issue a written response. Any refusal must be backed by documentation and clear, objective reasons explaining the decision.
Enforcement, remedies and penalties
The Workplace Relations Commission has published an updated Code of Practice on Longer Working to guide employers and staff through the change. The code itself is not legally binding, but it can be referenced in disputes brought to the WRC.
Employees who believe their rights under the new rules have been breached can make a claim to the WRC. If the commission upholds the complaint, it can order remedies or award compensation.
- Compensation up to 104 weeks’ remuneration or €40,000, whichever is greater.
- Employers found to have breached the law could face a fine of up to €5,000, imprisonment for up to 12 months, or both.
Official reaction
Minister for Enterprise, Tourism and Employment Peter Burke said the change will give workers more choice and flexibility to remain in paid work until they reach pension age. Trade unions have welcomed the reform, describing it as a positive development for employees and the broader economy.
Employers must prepare for a new process of requests and record-keeping from June 29. For affected workers, the change creates a legal route to remain in employment until they can access State pension benefits.
