The Employment (Contractual Retirement Ages) Bill 2025 (the Bill) has been published. The Bill updates the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024, and significantly, the Bill introduces an offence under which individuals and corporate bodies may be prosecuted.
The Bill provides that employees who are subject to a contractual retirement age (CRA) that is below the pensionable age, which is currently 66, and do not consent to retire at the CRA, have an obligation to notify their employer in writing.
This notification must be at least three months but no more than one year before the date on which they would reach the CRA, or if the employer’s notification period is longer than three months, the employee must notify their employer either within that notification period or within six months, whichever is shorter.
The Bill applies to employees with clauses in their contracts, either express or implied, that oblige an employee to retire at an age which is below the pensionable age. Under the Bill, employees have the option to retire at the CRA specified in their contract, continue working to the pensionable age, or retire at any date between the CRA and pensionable age.
An employer who has received a notification must not enforce the CRA unless retirement at the CRA is reasonably justified by a legitimate aim, the means of achieving that aim are appropriate and necessary, and if they are enforcing the CRA, the employer must, within one month of the notification, provide a reasoned reply to the employee.
Section 8 of the Bill provides that an employer must not threaten penalisation or penalise any employee for exercising their entitlement to notify their employer that they do not consent to retire at the CRA. If an employer breaches obligations, the employee may bring a claim to the Workplace Relations Commission (WRC), where the WRC may require reinstatement or re-engagement or require the employer to pay compensation up to €40,000- or two-years remuneration, whichever is greater.
Section 10 provides that an employer who, without reasonable cause, fails to provide a reasoned written reply will be guilty of an offence, with penalties including fines up to €5,000, imprisonment for up to 12 months, or both.
The offences apply to the body corporate and, where proven, directors, managers, secretaries, officers, and anyone acting in such capacity. Summary proceedings may be brought by the Irish Human Rights and Equality Commission. Persons convicted under this offence will be liable for the costs and expenses unless the court is satisfied that there are substantial reasons for not ordering this.