The Government has announced that new retirement age rights for employees will come into force from Monday 29 June.
The legislation allows eligible workers to choose to remain in employment beyond their contractual retirement age, where that age is below the State pension age of 66.
The rules are designed to give workers a choice and will not require anyone to stay in work if they prefer to retire.
The new right will allow employees to formally notify their employer that they do not consent to retire at their contractual retirement age.
To do so, they must provide at least 3 months’ notice, and no more than 12 months’ notice before the intended retirement date.
Employers are required to carefully consider any notification, and if they intend to enforce a retirement age, they must respond in writing within one month.
They must also clearly set out the decision and ensure that it complies with the higher legal threshold set out in the legislation.
Employers cannot require an employee to retire unless they can justify this decision.
They must objectively and reasonably justify the retirement of the employee concerned by a legitimate aim and that the means of achieving that aim is appropriate and necessary.
The new rules do not apply to employees with a retirement age of 66 or higher, or if their retirement age is set by law such as An Garda Síochána and the Defence Forces.
“This legislation gives employees greater choice and flexibility by allowing them to remain in employment until the State pension age, if they wish to do so,” said Minister for Enterprise, Tourism and Employment, Peter Burke.
To support implementation, the Workplace Relations Commission (WRC) has developed an updated Code of Practice on Longer Working.
The code of practice is not legally binding but is admissible as evidence in legal proceedings.
Employees who believe their rights have been breached, can bring a claim before the WRC.
If the case is upheld, the WRC could order the employer to address the breach or award compensation up to 104 weeks’ remuneration or €40,000, whichever is greater.
Employers who breach the new rules could face a fine of up to €5,000, imprisonment for up to 12 months, or both.
Director General of the Workplace Relations Commission, Audrey Cahill, said the updated Code of Practice is intended to support both employers and employees in understanding and applying the new statutory right.
“It also sets out clear principles in respect of employees aged 66 and over who wish to continue working,” Ms Cahill said.
