As of 29 June 2026, the Employment (Contractual Retirement Ages) Act 2025 is now in force, introducing important changes for employers across Ireland.

The legislation gives eligible employees whose contractual retirement age is below the State Pension age (currently 66) the right to notify their employer that they do not consent to retire at their contractual retirement age and wish to continue working. Employers are now required to formally consider these requests before making a decision.

While the legislation does not remove contractual retirement ages altogether, it does place greater responsibilities on employers when managing retirement decisions.

What Has Changed?

Under the new legislation:

• Eligible employees can request to remain in employment until they reach the State Pension age of 66.
• Employees must submit their request in writing between three and twelve months before their intended retirement date.
• Employers must carefully consider each request and provide a reasoned written response if they decide to enforce the contractual retirement age.
• Employers can no longer rely solely on a contractual retirement clause without demonstrating objective justification for their decision.

What Should Employers Do Now?

This is a good opportunity to review your employment policies and ensure they reflect the latest legislative requirements.

Consider:

• Reviewing employment contracts and retirement policies.
• Updating internal HR procedures.
• Training managers on how to handle retirement requests fairly and consistently.
• Keeping clear records of discussions and decisions.
• Seeking professional advice where requests involve complex legal or commercial considerations.

Taking a proactive approach will help reduce risk while ensuring your business remains compliant.

Looking Beyond Compliance

For many businesses, this change is also an opportunity to review workforce planning.

Longer working lives may influence succession planning, recruitment strategies, skills retention and leadership development. Employers that plan ahead are better positioned to retain valuable experience while balancing the future needs of the business.

How Gallagher Keane Can Help

Employment legislation continues to evolve, making proactive planning more important than ever.

At Gallagher Keane, we work closely with businesses across Ireland to help them navigate regulatory changes, assess their wider business impact and plan with confidence.

If you would like advice on how these new retirement rights may affect your business, contact Gallagher Keane today. Our experienced team is here to help you stay compliant while supporting your long-term business objectives.

Email: info@gallagherkeane.ie