Retirement Age Reform, What Irish Employers Need to Know About the Employment (Contractual Retirement Ages) Bill 2025

June 12, 2025

The Irish government has taken a significant step forward in reshaping retirement policy in the workplace with the publication of the Employment (Contractual Retirement Ages) Bill 2025. Once enacted, this legislation will introduce a new employment right, allowing, but not obliging, employees to remain in work until they reach the State Pension age.


So, what does this mean for employers, whose employment contracts include a mandatory retirement age?


Currently in Ireland, while retirement ages in employment contracts are common, they are subject to equality legislation, meaning employers can only set them if it's objectively justified by a legitimate aim and the means are appropriate and necessary. This objective justification requirement ensures that retirement ages are not used to discriminate based on age.


Key Changes Under the 2025 Bill


The headline change is this: employers will no longer be able to enforce a contractual retirement age below the State Pension age, unless the employee agrees to retire.


This represents a clear shift in the balance of decision-making around retirement. The Bill applies to any employee with a specified retirement age in their contract, whether explicitly written or implied by company practice. However, it does not apply to:


  • Employees still in probation ,
  • Roles governed by a statutory retirement age (e.g. certain public sector roles or positions with service limits).


It is of note that those on Probation, although not covered by this Bill, are still be governed by protections under the Equality Acts.


A New Right to Request to Stay


The Bill sets out a structured process for employees who wish to continue working past their contractual retirement age. They must:


  • Submit a written notification to their employer,
  • Do so at least three months and no more than one year before the contractual retirement date.


Employees will then have three options:


  1. Retire at the age specified in their contract;
  2. Work until the State Pension age;
  3. Retire at any point in between.


Once notified, employers can only enforce retirement if they can objectively justify it, using a legitimate aim and demonstrating that their approach is proportionate and necessary.


Obligations for Employers


If an employer plans to enforce retirement despite receiving a valid notification from an employee, they must:


  • Respond in writing within one month,
  • Clearly outline the objective justification for doing so.


Failure to meet these obligations could result in serious consequences. Under the Bill, non-compliance may amount to a criminal offence, with penalties including:


  • A Class A fine of up to €5,000,
  • Up to 12 months’ imprisonment,
  • Or both / for both the organisation and any managers involved.


Employees can submit such requests on up to two occasions within a six-month period, offering flexibility for those planning their future.


Protection from Penalisation


Section 8 of the Bill also provides strong protections against penalisation. This includes any negative treatment; dismissal, demotion, threats, or disciplinary action, linked to an employee’s decision to remain in work beyond the contractual retirement age.


Employees can bring a claim to the Workplace Relations Commission (WRC) where:


  • They did not receive a justified written response,
  • The justification provided was not proportionate,
  • Or they believe they were penalised for asserting their rights.


If the WRC upholds the complaint, it can award remedies including reinstatement, re-engagement, or compensation up to €40,000 or two years’ pay—whichever is higher.


What Should Employers Do Now?


Although the Bill is still making its way through the legislative process and may be amended, Irish employers—particularly those with established retirement practices below State Pension age—should begin preparing by:


  • Reviewing existing employment contracts and retirement policies;
  • Ensuring retirement processes are fair, documented, and justifiable;
  • Training managers on how to handle requests to stay on past retirement age;
  • Seeking advice if uncertain about how the changes may apply.


At MSS The HR People, we’re already working with clients to get ahead of this shift. If you need help reviewing your contracts and policies, or understanding how this legislation could impact your business, get in touch. We are here to support you through every stage of employment compliance.



PH: 01 8870690 / info@mssthehrpeople.ie

 

New paragraph

   

By Tara Daly June 13, 2025
When “Better Than Statutory” Really Matters
: A Practical Guide for Employers
By Tara Daly June 12, 2025
A Practical Guide for Employers. In today's dynamic workforce, fixed-term and specified purpose contracts have become a common feature across various sectors in Ireland. Whether it's covering maternity leave, managing seasonal workloads, or executing specific projects, these contracts offer flexibility to employers and opportunities to employees. However, it's crucial to understand the legal framework governing these contracts to ensure compliance and protect the rights of all parties involved.
First WRC Award in Right to Request Remote Working claim
By Tara Daly June 12, 2025
The Workplace Relations Commission (WRC) has issued its first award under the Work Life Balance and Miscellaneous Provisions Act 2023, and it's a timely reminder for employers across Ireland. Although multiple claims had previously been submitted to the WRC under this legislation, all were unsuccessful prior to this case.
How to Calculate Statutory Annual Leave in Ireland
By Tara Daly June 12, 2025
Annual leave entitlements are a fundamental part of every employee’s contract. But when it comes to calculating statutory annual leave, particularly for employees with variable hours, many employers are unsure of the rules
By Tara Daly May 13, 2025
What does this mean for Irish and UK Employers
By Tara Daly May 13, 2025
What Employers Need to Know
By Tara Daly May 13, 2025
A Temporary Relief for SMEs or Just Delayed Pressure?
Auto-Enrolment Delayed
By Tara Daly May 13, 2025
Auto-Enrolment Delayed. Why is there delays? when?
By Tara Daly May 1, 2025
At MSS The HR People, we often get asked, “What exactly is HR advice?” It’s a great question — and one that cuts right to the heart of what we do every day for our clients. What Is HR Advice? HR advice is professional guidance provided to employers and managers on how to manage people in the workplace. Whether you run a small business with a handful of employees or are a scaling SME with growing staffing needs, the right HR support can help you stay compliant, avoid costly mistakes, and build a high-performing team.  In this blog, we’ll break down what HR employer advice actually is, how to know when you need it, and what your options are for getting the right professional HR support - without hiring a full-time HR manager. It spans everything from recruitment and onboarding to performance management, employee relations, and employment law compliance. Good HR advice helps businesses stay compliant, make informed decisions, and avoid costly pitfalls. But more than that — great HR advice is practical, proactive, and tailored to your business needs. Types of HR Advice We Offer At MSS The HR People, we support clients with a broad range of HR issues. These include: Employee Relations – Managing grievances, disciplinaries, investigations, or conflict resolution. Performance & Conduct – Supporting managers with underperformance, absenteeism, or behavioural issues. Contracts & Policies – Drafting or reviewing contracts, handbooks, and HR policies to ensure legal compliance. HR Compliance – Advising on employment law updates and how to implement them in your business. Probation & Onboarding – Helping clients manage probation periods effectively and set new hires up for success. Redundancy & Restructuring – Providing guidance through challenging workforce changes. Everyday Queries – Whether it’s questions on annual leave entitlements, sick pay, or flexible working, no query is too small. What Do Clients Typically Contact Us For? Clients contact us when they: Need a second opinion or a clear interpretation of employment legislation. Are unsure how to approach a difficult conversation or situation. Want to ensure their HR practices are fair, consistent, and legally compliant. Are looking to reduce HR risk while improving employee engagement and culture. Have already worked out an approach and just want quick validation or a sounding board before taking action. Simply want quick, professional HR advice on tap. Why Is HR Advice Important? Irish employment legislation is constantly evolving - with updates to minimum wage, statutory sick pay entitlements, and gender pay gap reporting introduced so far this year – and it’s only April! Business owners are expected to keep up with these changes, ensure compliance, and handle any workplace issues appropriately. Getting it wrong can be costly. A poorly handled disciplinary, a missing contract, or a misstep during a redundancy process can result in: WRC (Workplace Relations Commission) complaints Penalties or fines Damaged reputation Low staff morale or high turnover HR advice ensures you don’t fall into these traps. Instead, it gives you the confidence to act decisively and fairly - whether you’re growing your team or managing a tough issue. How Do I Know If I Need HR Advice? Here are some of the most common signs that your business needs HR support: 1. You're Hiring or Growing Your Team Bringing on employees is a big step for any business. It’s important to have compliant employment contracts, solid onboarding processes, and clear expectations. If you're unsure where to start or want to do things right from the get-go, expert HR advice can set you up for success. 2. You Don’t Have Written HR Policies All employers should have clear policies in place such as an employee handbook, disciplinary procedure, grievance policy, absence management, and remote working guidelines. If you don’t have these in writing (or haven’t updated them in years), it’s time to get professional help. 3. You're Dealing with a Staff Issue If you're facing challenges like persistent absenteeism, underperformance, or conflict between employees, it can be difficult to know how to handle it correctly. HR consultants can guide you through fair processes, help you document everything, and reduce your legal risk. 4. You Want to Avoid a WRC Complaint If you’ve had a close call - or just want to make sure you're doing everything by the book - getting HR advice is a proactive way to protect your business and reduce the chance of ending up in front of the WRC. Not all HR support is created equal however, so it’s important to work with a provider who delivers straightforward, practical advice tailored to your business size and sector. The best HR Advice providers take a proactive (not just reactive) approach, providing practical tools like compliant templates, letters, and policies, along with training or coaching for managers when needed. Depending on your needs and budget, there are several ways to access HR support. One-off HR advice is ideal if you're dealing with a specific issue, such as a staff dispute or restructure, and need expert guidance. An HR health check or audit is a smart starting point if you're unsure about compliance, offering a full review of your contracts, policies, and procedures with a clear action plan. For ongoing peace of mind, many businesses opt for outsourced HR support, giving them access to expert advice without the cost of hiring in-house. Retained HR consultancy offers regular, tailored support for businesses that are growing or managing complex employee relations on an ongoing basis. How to Get Started Start by assessing your current situation. Do you need help with a one-off issue, like a disciplinary meeting? Or are you looking for ongoing HR support for your business? Make a list of your concerns: lack of policies, recruitment headaches, managing performance, or dealing with absence or sick leave. The more clarity you have, the more focused your consultant’s advice can be. Ready to Take the Headache Out of HR? As we have identified, getting HR advice isn’t just about avoiding fines - it’s about creating a better place to work, retaining great talent, and freeing you up to focus on growing your business. At MSS – The HR People, we offer expert HR support for employers that’s clear, compliant, and commercial. From one-off consultations to fully outsourced solutions, we’re here to help you get HR right. Ready to get started or just want to have a quick chat about your HR challenges? Contact us today to arrange a free discovery call. Whether you’re an SME owner, a manager navigating a tricky staff issue, or an organisation looking to strengthen your HR framework, MSS The HR People is here to help.
By Tara Daly April 8, 2025
In 2024, Ireland implemented significant reforms to its employment permit and visa systems through the Employment Permits Act 2024. These changes aim to modernise the process, address labour market needs, and enhance flexibility for both employers and employees. If you currently employ, or plan to employ an employment permit or visa holder, it's crucial to understand these developments and their implications.​ Key Changes Introduced by the Employment Permits Act 2024: Revised Labour Market Needs Test (LMNT): Employers are no longer required to advertise job vacancies in print media. Instead, vacancies must be posted on online platforms accessible to Irish and EEA citizens. However, postings on Jobs Ireland and EURES remain mandatory. This simplifies the process for employers, potentially speeding up the recruitment process. Enhanced Mobility for Employment Permit Holders: General Employment Permit (GEP) and Critical Skills Employment Permit (CSEP) holders can now change employers after nine months, reduced from the previous 12-month requirement. GEP holders can move within the same occupation, while CSEP holders have broader flexibility across related roles. ​ Facilitated Internal Promotions and Transfers: Permit holders can be promoted or internally transferred within the same company without needing a new employment permit, streamlining career progression and avoiding unnecessary administrative burdens for employers. Introduction of the Seasonal Employment Permit (SEP): A new permit allows non-EEA workers to engage in seasonal employment for up to seven months annually, supporting sectors like horticulture and agriculture. A pilot scheme was launched in February 2025. ​ This is positive for employers who may otherwise struggle to recruit seasonal workers. Updated Salary Thresholds: Minimum salary requirements for various permits have been increased. For instance, the threshold for General Employment Permits rose from €30,000 to €34,000 in January 2024, with further increases planned later this year. ​ Whilst this is increase is positive in that it ensures Migrant workers are earning a living wage, the increased threshold may lead to difficulties in recruitment and may also deter some employers from considering Work Permits. Expanded Rights for Dependents: Dependents of CSEP holders and certain researchers can now work in Ireland without needing a separate employment permit, enhancing family integration. ​ Implications for Employers: Recruitment Flexibility: The revised LMNT and mobility provisions allow for a more streamlined hiring process and greater access to international talent.​ Compliance Obligations: Employers must ensure adherence to the new advertising requirements and updated salary thresholds to remain compliant.​ Strategic Workforce Planning: The introduction of the SEP provides opportunities to address seasonal labour demands effectively.​ Implications for Employees: Career Advancement: Enhanced mobility and promotion provisions offer greater opportunities for career development within Ireland.​ Family Integration: Expanded work rights for dependents facilitate better family support and integration into Irish society.​ These legislative changes reflect Ireland's commitment to creating a more flexible and responsive employment permit system, balancing economic needs with worker rights.​ Need Support Navigating the Changes? If you have questions about how the 2024 work permit and visa changes affect your business, or if you're unsure about compliance, recruitment strategies, or permit applications— we’re here to help . Our team of HR and employment law experts can guide you through every step of the Work Permit process, ensuring you remain compliant while supporting your workforce needs. Call or email us today 01 8870690, info@mssthehrpeople.ie
More Posts