While certain provisions contained in the Employment (Contractual Retirement Ages) Bill 2025 have changed from the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 published last year, it still adopts a consent based approach to this issue. Significantly, the Bill introduces a new offence in respect of which both bodies corporate and individuals can be prosecuted.

Consent-based approach

Section 5 states that where an employee is subject to a contractual retirement age (‘CRA’) that is less than the pensionable age and does not consent to retire at the CRA, they must notify their employer in writing:

• at least 3 months but not more than 1 year before the date on which they would reach the CRA; or
• where the employer notification period is greater than 3 months, not less than the employer notification period or the period of 6 months, whichever is shorter.

The Bill applies to employees with clauses in their contracts of employment, whether express or implied, which oblige an employees to retire at an age which is below the age at which employees can first access the State Pension (referred to as ‘the pensionable age’). The pensionable age is currently 66 years.

The provisions in the Bill will not apply to an employee during a probationary period or whose employment is subject to a maximum retirement age, or a maximum service limit, required by law.

Notification to employer

Where an employee has so notified their employer, the employer must not:

• enforce the CRA before providing a reasoned written reply; or
• retire the employee before a date on which the employee consents, or the date on which that employee attains the pensionable age, whichever is first.

Therefore, the Bill gives the option to the employee:

• to retire at the CRA contained in his/her contract of employment, whatever age that may be;
• to continue working to the pensionable age; or
• where applicable, to retire at any date between the CRA and the pensionable age.

An employee can notify their employer on a maximum of two occasions in any 6 month period. An employee may withdraw a notification but must do so in accordance with the shorter of either their contractual or statutory minimum notice requirements.

What can an employer do?

An employer who has received notification from an employee must not enforce the CRA unless:

• the retirement at the CRA is objectively and reasonably justified by a legitimate aim; and
• the means of achieving that aim are appropriate and necessary.

Where an employer has received a notification but proposes to enforce the CRA, the employer must, within one month of the notification, provide a reasoned written reply setting out the justification to the employee.

Protection against penalisation

Section 8 provides that an employer must not penalise or threaten penalisation of an employee for proposing to exercise, or having exercised, their entitlement to notify their employer that they do not consent to retire at the CRA.

Redress for employees

An employee may bring a claim to the Workplace Relations Commission (‘WRC’), where an employer breaches the following obligations under the Bill:

• the obligation not to enforce the CRA before providing a reasoned written reply;
• the obligation not to enforce the CRA as regards the employee unless the retirement of the employee at the CRA is objectively and reasonably justified by a legitimate aim;
• the obligation to provide a reasoned written reply setting out the justifications for the enforcement of the CRA; or
• the obligation in relation to penalisation.

The WRC may:

• declare that the complaint was or was not well founded;
• require the employer to take a specified course of action, which may include reinstatement or reengagement; and/or
• require the employer to pay compensation up to €40,000 or two years’ remuneration, whichever is greater.

Parallel claims

Where the conduct of an employer constitutes a contravention of both this Bill and the Employment Equality Acts 1998 to 2021, relief cannot be granted under both Acts.

Newly created offence

Significantly, section 10 provides that an employer who, without reasonable cause, fails to provide an employee with a reasoned written reply will be guilty of an offence and liable on summary conviction to a class A fine (i.e. a fine not exceeding €5,000) or imprisonment for up to 12 months or both. The offences apply to both the body corporate itself and, where proven to have been committed with the consent or connivance of any person, to directors, managers, secretaries or other officers of the body corporate and anyone purporting to act in any such capacity.

It will be a defence in such proceedings for a person to prove that they exercised due diligence and took reasonable precautions to ensure that the provisions contained in the Bill were complied with by them and by anyone under their control.

Summary proceedings may be brought by the Irish Human Rights and Equality Commission (‘IHREC‘) and may be instituted within 12 months from the date of the offence.

In addition, persons convicted under this offence will be liable for the costs and expenses incurred by IHREC in relation to the investigation, detection and prosecution of the offence, as measured by the court, unless the court is satisfied that there are special and substantial reasons for not ordering this.