An employee is approaching 65. Their contract says they are due to retire; the business has started planning for their departure, and perhaps a replacement is already being considered. Then the employee says they are not ready to leave and want to keep working.

For Irish employers, that conversation now carries more weight. New rules introduced in June 2026 give certain employees with a contractual retirement age below the State Pension age of 66 a formal way to say they do not consent to retiring and want to remain in work.

That does not mean every employee now has to work until 66, or that every retirement age has automatically changed. It does mean employers need to be more careful about how they handle retirement at 65 and whether an earlier contractual retirement age can still be enforced.

In this guide, we explain what has changed, what employers need to do when an employee wants to stay and how to manage retirement decisions fairly.

What Changed on 29 June 2026?

The Employment (Contractual Retirement Ages) Act 2025 came into effect on 29 June 2026, introducing new rules for employees whose contractual retirement age is below the State Pension age, currently 66.

Under the new rules:

• Eligible employees can notify their employer that they do not consent to retiring at the age stated in their contract.
• They can choose to remain in employment up to the State Pension age of 66.
• The employee must have completed their probationary period.
• Employees can still choose to retire at their existing contractual retirement age.
• Statutory retirement ages that apply to certain occupations are treated separately.

Importantly, this does not mean every contractual retirement age in Ireland has automatically increased to 66. The main change is that when an eligible employee wants to keep working, employers must follow a defined process before enforcing an earlier contractual retirement age.

Can Employees Now Automatically Work Until 66?

Not automatically. The new rules do not simply replace every contractual retirement age of 65 with a retirement age of 66.

However, where an eligible employee notifies their employer that they want to continue working, the employer cannot simply point to the retirement age in their contract and require them to leave.

An employer can still enforce an earlier contractual retirement age, but it must be:

• Objectively and reasonably justified by a legitimate aim.
• Appropriate for achieving that aim.
• Necessary in the circumstances.

This means employers need a genuine, defensible reason to require an employee to retire before the State Pension age. Having a retirement age written into the employment contract is no longer enough.

How Does an Employee Ask to Work Past Their Retirement Age?

Employees who want to continue working must notify their employer in writing that they do not consent to retiring on their contractual retirement date.

Timing is important. In most cases, the employee must give:

• At least three months’ notice before their contractual retirement date.
• No more than 12 months’ notice before that date.
• A longer notice period where their contract requires it, subject to a maximum requirement of six months under the new rules.

The employee should also state the date until which they want to remain in employment, which can be any date up to the qualifying State Pension age.

For employers, this means recognising these notifications when they arrive and responding promptly. Do not treat a request to continue working as an informal retirement conversation, as specific obligations and deadlines apply once the statutory process has been triggered.

What Must an Employer Do When They Receive a Notification?

Once an employee gives valid notice that they want to continue working, the employer needs to consider the request properly rather than simply relying on the retirement age in their contract.

If the employer agrees, the employee can continue working until the date specified in their notification.

If the employer intends to enforce the earlier contractual retirement age, they must:

• Respond to the employee in writing within one month of receiving the notification.
• Explain why the contractual retirement age is being enforced.
• Show that a legitimate aim objectively and reasonably justifies the decision.
• Be able to demonstrate that requiring retirement is appropriate and necessary in the circumstances.
• Keep a clear record of the decision and the reasons behind it.

What Does “Objectively Justified” Mean?

An employer may still enforce a contractual retirement age below 66, but it must have a genuine reason for doing so. Having a retirement age written into an employment contract is not enough on its own.

The employer must show that the retirement age supports a legitimate aim and that requiring the employee to retire is an appropriate and necessary way to achieve it.

Depending on the workplace and circumstances, legitimate aims may include:

• Workforce and succession planning.
• Creating opportunities for progression.
• Supporting intergenerational fairness.
• Maintaining an appropriate age balance within the workforce.
• Genuine health and safety requirements associated with particular roles.

These reasons are not automatic justifications for retirement. Employers need to show why the reason applies.

What Happens to Existing Retirement Clauses?

The new rules do not automatically remove an existing retirement age from an employee’s contract. If a contract states that employment normally ends at 65, that clause can remain in place.

What has changed is how employers can rely on it.

Where an eligible employee uses the new notification process to continue working, the employer cannot treat the contractual retirement date as the end of the discussion. If they still want to enforce retirement at 65, they need to follow the new process and objectively justify that decision.

Employers should therefore review existing contracts alongside their retirement policies and actual workplace practices. This is particularly important where different retirement ages appear across older contracts or where employees have previously been allowed to remain in employment beyond the stated age.

The written policy and what happens in practice should tell a consistent story.

What About Employees Who Want to Work Beyond 66?

The new statutory notification process does not give employees an automatic right to continue working beyond the State Pension age, currently 66.

However, reaching 66 does not necessarily mean employment must end either. An employee may ask to remain in their role beyond this age, and employers should consider the request in line with their retirement policy and the Code of Practice on Longer Working.

Where an employer decides to enforce a mandatory retirement age, that retirement age still needs to be objectively and reasonably justified under Irish equality law.

Employers should therefore avoid treating an employee’s 66th birthday as an automatic end point. Any request to continue working should be considered fairly, consistently and on its merits.

The Updated Code of Practice on Longer Working

Alongside the new retirement rules, an updated Code of Practice on Longer Working came into effect on 29 June 2026. It provides practical guidance for employers and employees on retirement and requests to remain in employment.

The Code covers areas such as:

• Planning and communicating around retirement.
• Handling employee notifications and employer responses.
• Considering requests to work beyond a contractual retirement age.
• Developing clear retirement and longer-working policies.
• Managing discussions with employees approaching retirement.

The Code is not legislation, but you can consider its guidance in proceedings before the WRC, the Labour Court, or the courts.

For employers, it provides a useful framework for reviewing existing retirement procedures and making sure managers know how to handle longer-working requests consistently.

What Happens If Employers Get the Process Wrong?

Retirement decisions can create problems when employers rely on outdated contracts, fail to follow the new process or cannot properly explain why an employee must retire.

Common mistakes can include:

• Ignoring a valid notification from an employee.
• Failing to provide a written response within the required timeframe.
• Relying solely on the retirement age stated in the employee’s contract.
• Giving vague or unsupported reasons for enforcing retirement.
• Applying retirement ages inconsistently across the workforce.
• Penalising an employee because they asked to continue working.
• Making assumptions about an employee’s ability or performance based on their age.

These situations can lead to complaints before the WRC and may also raise age discrimination issues under the Employment Equality Acts.

For employers, a clear process and well-documented reasoning can make a significant difference if a retirement decision is later challenged.

What Should Irish Employers Do Now?

Employers should not wait until an employee approaches their retirement date to consider how the new rules affect the business. Review contracts, policies, and existing practices now so there is a clear process when the first notification arrives.

A practical review should include:

• Identifying contracts that contain a retirement age below 66.
• Reviewing retirement clauses in contracts and employee handbooks.
• Checking whether retirement ages have been applied consistently in the past.
• Updating retirement and longer-working procedures.
• Deciding who will receive and manage employee notifications.
• Making managers aware of the one-month response deadline.
• Reviewing the business reasons behind any mandatory retirement age.
• Keeping evidence that supports any objective justification.
• Recording retirement discussions, notifications and decisions.
• Avoiding assumptions about capability or performance based on age.

Where an employer intends to refuse an employee’s notification and enforce an earlier retirement age, getting HR advice before making the final decision.

How HR Team Can Help

The new retirement rules mean employers need to look beyond the retirement age written into an employment contract. How the business handles employee notifications, longer-working requests and retirement decisions now matters just as much.

HR Team can support employers with:

• Reviewing contractual retirement ages and existing policies.
• Updating employment contracts and employee handbooks.
• Developing clear retirement and longer-working procedures.
• Responding to employees who want to continue working.
• Reviewing the objective justification for mandatory retirement ages.
• Training managers on the new notification process.
• Supporting difficult retirement and longer-working conversations.
• Advising employers before enforcing an earlier retirement age.

If your contracts still specify retirement at 65, now is a good time to review whether your policies and procedures reflect the new rules. Contact HR Team for practical support in managing contractual retirement ages and employee requests to work longer.

Frequently Asked Questions

Can an Employee Refuse to Retire at 65 in Ireland?

Eligible employees with a contractual retirement age below the State Pension age can now formally notify their employer that they do not consent to retiring and want to continue working. The employee must follow the required notification process and notice periods. An employer may still enforce retirement at 65 where the decision can be objectively and reasonably justified.

Has Ireland’s Retirement Age Increased from 65 to 66?

No. The new rules have not simply replaced every retirement age of 65 with 66. Ireland’s qualifying State Pension age is currently 66, while employers may have lower contractual retirement ages. The new legislation changes how employers can enforce those earlier contractual retirement ages when an eligible employee wants to continue working.

How Much Notice Must an Employee Give If They Want to Work Past 65?

In most cases, employees must notify their employer in writing at least three months before their contractual retirement date and no more than 12 months beforehand. Different requirements can apply where the employment contract contains a longer notice period, subject to the limits set by the legislation.

How Long Does an Employer Have to Respond?

Where an employer intends to enforce the employee’s earlier contractual retirement age, they must respond in writing within one month of receiving the employee’s notification. The response should explain the objective justification for requiring the employee to retire.

Can an Employer Still Require an Employee to Retire at 65?

Yes, in certain circumstances. An employer must show that enforcing the contractual retirement age is objectively and reasonably justified by a legitimate aim and that requiring retirement is an appropriate and necessary way to achieve that aim. Simply including age 65 in the employee’s contract is not enough on its own.

What Counts as an Objectively Justified Retirement Age?

Potential legitimate aims can include workforce and succession planning, intergenerational fairness, opportunities for progression and genuine health and safety considerations. However, these reasons are not automatically sufficient. Employers must show why the particular retirement age is appropriate and necessary for their business and circumstances.

Can an Employee Continue Working After 66 in Ireland?

Potentially. The new statutory notification process does not automatically grant a right to remain employed beyond the qualifying State Pension age. However, employees can ask to continue working, and employers should consider longer-working requests fairly and in line with their retirement policies, Irish equality law and the Code of Practice on Longer Working.

Can an Employee Make a WRC Complaint About Retirement?

Yes, depending on the circumstances. Failure to comply with the new contractual retirement process can lead to a complaint before the WRC. Retirement decisions can also raise age discrimination issues under the Employment Equality Acts, particularly where retirement ages are applied inconsistently or cannot be objectively justified.