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The Employment (Contractual Retirement Ages) Bill 2025 has been passed by both Houses of the Oireachtas and will now go to the President to be signed into law. Once law, a commencement order will be required before the changes introduced by the Bill become effective.
The Bill adopts a consent based approach to the issue of contractual retirement ages. It provides that where an employee is subject to a contractual retirement age ('CRA') that is less than the pensionable age and does not consent to retire at the CRA, they must notify their employer in writing:
- at least 3 months but not more than 1 year before the date on which they would reach the CRA; or
- where the employer notification period is greater than 3 months, not less than the employer notification period or the period of 6 months, whichever is shorter.
Significantly, the Bill introduces a new offence in respect of which both bodies corporate and individuals can be prosecuted. The Bill provides that an employer who, without reasonable cause, fails to provide an employee with a reasoned written reply will be guilty of an offence and liable on summary conviction to a class A fine (i.e. a fine not exceeding €5,000) or imprisonment for up to 12 months or both. The offences apply to both the body corporate itself and, where proven to have been committed with the consent or connivance of any person, to directors, managers, secretaries or other officers of the body corporate and anyone purporting to act in any such capacity.
For a detailed consideration of the Bill, see our Insights Blog post here: Changes to retirement ages on the way: The Employment (Contractual Retirement Ages) Bill 2025 is published | Arthur Cox LLP
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
