Employment (Contractual Retirement Ages) Act 2025 And Updated WRC Code Now Operative

The Employment (Contractual Retirement Ages) Act 2025 (Act) came into force on 29 June 2026. The Workplace Relations Commission (WRC) has published a code of practice (Code), also operative since 29 June 2026, which updates the Code of Practice on Longer Working by including guidance on the new employment rights available under the Act.

The Act establishes a mechanism for dealing with situations where an employee is subject to a contractual retirement age that is below the State pension age but does not consent to retire upon reaching that age.

Provisions of the Act

Where an employee does not consent to retire at the contractual retirement age, they must notify their employer in writing within the prescribed timeframe. Following a valid notification, the employer may only enforce the contractual retirement age where it is objectively and reasonably justified by a legitimate aim and the means of achieving that aim are appropriate and necessary. If the employer intends to enforce the retirement age, they must provide a reasoned written response within one month.

Failure to provide a reasoned written response without reasonable cause in accordance with the Act is an offence and may result in a fine of up to €5,000, imprisonment for up to 12 months, or both. Employees may refer non-compliance complaints to the WRC, which may order corrective action, including reinstatement or re-engagement, or award compensation of up to 104 weeks’ pay or €40,000, whichever is greater.

Further details on the provisions of the Act are set out in our earlier briefing,

WRC Code of Practice

One of the key purposes of the updated Code is to provide guidance to employers, employees and their representatives on best principles and practices for engagement in the run-up to retirement.

The Code includes:

• guidance for employees who intend to make a notification to their employer under the Act and in respect of any complaint to the WRC under the Act;

• guidance to employers on their obligations upon receiving a notification and on updating contractual retirement age clauses in company policies;

• guidance on what constitutes a legitimate aim capable of objectively justifying the imposition of a compulsory retirement age, for example intergenerational fairness, health and safety and succession planning; and

• templates, including policy guidelines and employee notifications.

Next Steps for Employers

Given that the Act is now operative, employers may need to undertake a full audit of existing retirement ages, identify legitimate aims underpinning contractual retirement ages and consider whether retirement ages can be objectively and reasonably justified by reference to such legitimate aims.

It may also be necessary for employers to update retirement policies and establish a process for handling employee notifications, with particular attention given to the prescribed timeframes under the Act.