Who is affected?
The new legislation affects employers who operate a contractual retirement age below 66.

Employers with a contractual retirement age of 66 or above are not subject to the new notification process in respect of that retirement age, although employees aged 66 and over may seek longer working arrangements under the existing framework reflected in the Code of Practice. This article deals with requests from employees in companies where the contractual retirement age is below the State pension age.

The 2025 Act does not apply where a maximum retirement age is required by statute, such as for members of the Defence Forces and An Garda Síochána. 

Can employees simply choose not to retire?
No. The legislation does not give employees an automatic right to remain in employment after reaching their contractual retirement age.

Instead, where employers operate a contractual retirement age below 66, it gives employees the right to formally notify the employer that they do not consent to retiring at that age. The employer must then consider whether it can objectively justify enforcing the contractual retirement age.

How does the notification process work?
An employee wishing to rely on the 2025 Act must:
•    notify their employer in writing;
•    clearly state that they do not consent to being retired at the contractual retirement age;
•    identify that the notification is being made under section 5(1) of the 2025 Act; and
•    submit the notification at least three months before the intended retirement date (though employers may specify a longer notification period of up to six months) but no more than one year before the intended retirement date.

What should an employer do when a notification is received?
Once a notification is received, employers should:
1.    consider the specific role and circumstances of the employee; 
2.    assess whether the contractual retirement age can be objectively justified;
3.    determine whether enforcing the retirement age remains appropriate and necessary in this case; and
4.    provide a reasoned written response within the required timeframe.

How quickly must an employer respond?
The employer must provide a reasoned written response within one month of receiving the notification.
The response should explain:
•    whether the employer intends to enforce the retirement age; and
•    if so, the legitimate aim relied upon and why the retirement age is considered an appropriate and necessary means of achieving that aim.

What happens if the employer agrees to the request?
If the employer accepts an employee’s notification request or agrees a new date for retirement, the arrangement should be documented. The updated Code of Practice recommends that the employee's contract of employment be amended to reflect the agreed retirement arrangements.

Are there penalties for non-compliance?
The 2025 Act introduces a penalty for employers for a failure to meet their obligations under the legislation. An employee may bring a complaint to the WRC within six months of an alleged breach (which can be extended by a further six months where there is reasonable cause).

Where a complaint is upheld, the WRC may:
•    order the employer to comply with its obligations; and/or
•    award compensation of up to 104 weeks' remuneration or €40,000, whichever is greater.

The 2025 Act also creates separate criminal liability for certain breaches. For example, an employer who, without reasonable cause, fails to provide the required reasoned written response to an employee's notification may commit a criminal offence. On conviction, sanctions may include: a fine of up to €5,000; imprisonment for up to 12 months; or both.

Where the employer is a company, liability may also extend to directors, managers, secretaries or other officers in certain circumstances.