The Irish Congress of Trade Unions has welcomed the signing of the commencement order for the Employment (Contractual Retirement Ages) Act 2025 by Minister Peter Burke, which comes into effect from Monday 29 June, and the publication of an updated Code of Practice on Longer Working.
The new law strengthens workers’ right to keep their job for employees with a mandatory retirement age below 66 in their employment contract. While the Act only applies to an extension up to age 66, it does not offset a worker's existing right to claim that forced retirement beyond 66 is discriminatory on grounds of age under the Employment Equality Acts.
Congress general secretary Owen Reidy said:
There is a big and growing appetite among workers to continue working beyond the traditional retirement age of 65. The latest data from the CSO shows PAYE workers aged 65 years and over had the largest year-on-year increase in employment of all age-groups (+7.5%). The number of over-65s in work has risen by almost a third since 2022 to around one in six of everyone aged 65 years and over (16%).
“This Act gives workers the choice to remain in their job until they reach the qualifying age for the State Pension where the retirement age stipulated in their employment contract is lower. For workers who have no desire to work longer this new law does not impact them or change their contractual retirement age. The decision to continue in employment longer is optional.
“Restricting the use of mandatory retirement ages is good for workers, business and the economy. It is essential in a tight labour market, an ageing population and for the future sustainability of the public finances. It recognises differences between workers and the jobs they do, compared to the blunt instrument of pushing up the pension age for everyone.”
Mr Reidy added: “I want to acknowledge the work of the Pensions Commission, officials in the Department of Enterprise and Employment and WRC for bringing us to this point today.
