Minister Peter Burke will bring the Employment (Contractual Retirement Ages) Bill to Cabinet today (Tuesday) for approval.
The last Government committed to introducing legislation to allow, but not compel, workers to remain in their job until age 66, in line with the qualifying age for the State pension. Pre-legislative scrutiny was completed in May, but the bill had not started its passage through the Oireachtas before the election was called in November.
Welcoming the news, Congress general secretary Owen Reidy said:
"The last Government committed to restrict the use of mandatory retirement ages by employers, with an expectation that the new protections would be in force from January this year.
"The Irish Congress of Trade Unions has long argued there is a sizeable and growing number of workers who are forced to retire earlier than they would wish because of the compulsory age of retirement in their employment contract or company policies, usually 65.
“While legislation increased the compulsory retirement age to 70 for most public servants in 2018, workers in the private sector have been left with soft measure which have proved inadequate for far too many workers wanting to remain in their job past the age of 65.
Thousands of private sector workers who turn 65 this year will have their working life cut shorter than they would wish because of delays enacting this legislation. Meanwhile, not a week passes without alarm bells sounded over population ageing and rising pension costs. The bill must now progress as a priority.”
Mr Reidy added: “This reform recognises differences between what workers want and the types of work they do. It gives more choice on the age at which workers can retire. Under the Act, workers can still retire at the age specified in their contract of employment. The decision to remain on past 65 will be optional.”
Notes:
The Irish Congress of Trade Unions called for this legislation to align mandatory retirement ages in employment contracts with the pension qualify age where an employee does not consent to the company’s retirement age in our submission to the Pensions Commission, which the Commission in turn recommended in 2021.
In September 2022, the last Government committed to introducing legislative measures. Pre-legislative scrutiny was completed in May 2024 and the drafting of the bill finalised and approved by Minister Burke on 30 October. However, the stamped draft had not gone to Cabinet before the Dáil was dissolved in November.
