Catherine Connolly has signed the Employment (Contractual Retirement Ages) Act 2025 into law, introducing significant changes for employers who operate contractual retirement ages below the State pension age.
Once commenced, this legislation will require organisations to comply with a new consent-based framework before relying on a contractual retirement age that is below the current State pension age of 66.
Importantly, the Act is not yet in force and will require a commencement order. However, organisations should begin preparing now.
What does this mean for organisations?
Under the new framework, employers who wish to rely on a contractual retirement age below 66 will be required to:
- Formally notify the employee in advance
- Consider the employee’s response
- Provide a reasoned reply within one month
This represents a shift away from automatic reliance on contractual retirement clauses and places a greater emphasis on transparency, engagement, and documentation.
What should employers do now?
- Review employment contracts to identify mandatory retirement age clauses.
- Update retirement-related policies and procedures.
- Ensure internal processes are in place to manage notifications, responses, and timelines in line with the new consent-based requirements.
Preparing early will help employers minimise risk and ensure compliance once the legislation comes into force.
If you would like support reviewing contracts, policies, or preparing compliant procedures, our team is happy to assist.
Contact orlamcm@canavanbyrne.ie
Contact orlamcm@canavanbyrne.ie
Share this article
