The Employment (Contractual Retirement Ages) Act 2025 will now commence on 29^th June 2026 and provides that where an employee is subject to a contractual retirement age (‘CRA’) that is below the state pension age (66 years), they may request to continue working up to state pension age.

The employee must notify their employer in writing that they do not consent to retire below the age of 66 years:

• 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.

If an employer intends to enforce the contractual retirement age, they must provide a reasoned written reply to the employee within one month of receipt of notification and demonstrate that the retirement age is necessary.

An employer who without reasonable cause, fails to provide an employee with a reasoned written reply shall be guilty of an offence under the Act, 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.

Employers are also prohibited from penalising employees who exercise their right to remain in employment and penalisation may include suspension, demotion, intimidation, loss of opportunity for promotion and a change of location of place of work.

In addition, the Code of Practice on Longer Working has now been updated and provides guidance in respect of both requests to continue working up to state pension age, as well as requests to work beyond the age of 66 years.

Employers must now consider if their current retirement age is fit for purpose if it is below 66 years and whether it can (or should ) withstand requests to work to pension age as well as beyond, and ensure that contract of employment and retirement policies are reviewed and aligned.