New Law Allows Workers to Stay Employed Until State Pension Age 66 From June 29

The Employment (Contractual Retirement Ages) Act 2025, announced by Minister for Employment Peter Burke, will take effect on June 29. This new law allows eligible employees to work beyond their contractual retirement age if it is below the State Pension age of 66.

Employees with a contractual retirement age of 65 or under, who have completed probation, can formally notify their employer of their wish to remain employed until age 66. They must provide 3 to 12 months' notice before their intended retirement date. The earliest contractual retirement date the Act can apply to is September 29, due to the minimum notice requirement.

Employers intending to enforce a retirement age must respond in writing within one month, justifying their decision according to the Act's higher legal threshold. An updated Code of Practice on Longer Working, developed by the Workplace Relations Commission (WRC), also effective June 29, provides procedures and templates for implementing the new right. This legislation strengthens older workers' rights in Ireland, offering greater choice and flexibility.

The Act does not apply to employees whose retirement age is 66 or higher, or those whose retirement age is legally set, such as members of An Garda Síochána or the Defence Forces.