The change in policy will create new rights for workers who want to stay in their jobs for longer, as well as bring legal and operational obligations to employers.
This past week (starting 29 June), the Department of Business, Tourism and Employment launched the Employment (Contractual Retirement Age) Act 2025, which introduces important new rights for workers in Ireland and places new legal restrictions and obligations on employers.
The new rules mean that eligible workers, who wish to do so, can now choose to remain employed at their place of employment beyond their contractual retirement age, where that age is less than the State Pension age of 66.
A qualified employee can retire as planned if that is their choice and if they choose to stay, they must officially notify their employer of their plans at least three to six months in advance.
The employer is expected to consider any notification made under the new law and if it intends to force him to retire at a certain age, there are conditions that must be met – that is, he must respond to the notification within one month, clearly state the basis of the decision and ensure that it is in line with the maximum legal limit set by law.
To support this new action, Minister of State for Small Business, Retail and Employment Alan Dillon, TD signed into law the Revised Code of Practice for Long-Term Work, which was established by the Workplace Relations Commission and is now fully operational.
Successful complaints about the new law brought by an employee through the Workplace Relations Commission can be awarded two years’ wages or €40,000, whichever is higher.
On the part of the employer, failure to provide a reasonable response to retirement notices may constitute a criminal offense and is punishable by a Class A fine of up to €5,000 or imprisonment for up to 12 months.
The golden age
Commenting on the recent policy change, Ruaddri McGarrythe associate director of IT Search and DevOps, a specialist in cloud and cybersecurity, explained that the right to ask for a later retirement date will give older workers more guarantees.
McGarry told SiliconRepublic.com, “It takes away two some worries. Financially, they can work at full salary for another year and continue with pension contributions accordingly, and professionally, not everyone wants to retire – and many people in the STEM community really love their work. “
It’s an opportunity he believes many people working in the STEM space will take advantage of, especially since he’s seen an increase in retirement-age professionals who are extending their working hours while still being able to produce exceptional work. In many cases they may turn to consulting work to supplement their income, but often, in his opinion, it is about personal happiness and not feeling that they need to retire based on the calendar.
He said, “We all need a sense of purpose and if any professional can put in their decades of experience and drive, there’s no real reason for them to stop.”
Turning a challenge into an opportunity
After these new laws, there may be an opportunity for organizations to continue to use the expertise of workers reaching retirement age.
McGarry said, “From a big-picture perspective, that’s an additional year, or more, to add to the body of industrial knowledge.”
He added: “I fully expect employers to implement this law and increase the transfer of knowledge from generation to generation, using senior staff to bring a new focus on teaching, project leadership and knowledge retention.
“Any legislative change that gives employees more choice is always welcome, and those who choose to expand their careers for whatever reason will no doubt add a small but important part of the experience to the entire industry.”
Addressing concerns that extending the tenure of older workers could limit opportunities for new hires or younger workers, McGarry believes that organizations will be smarter about how they use the time remaining with terminated workers.
“I expect that when this change in law takes effect, firms will use that year to focus on the transfer of knowledge to technical workers as this new retirement date approaches, which will give a new focus to their last year,” he said.
“The reduction in opportunities for those starting careers would be minimal and more than offset by more learning time for those at the end of their professional journey.”
Don’t miss out on the information you need to succeed. Sign up for Daily BriefSilicon Republic’s digest of must-know sci-tech news.
