The Government has confirmed that new retirement age protections for employees will take effect from Monday, 29 June.
Under the new legislation, qualifying workers will be entitled to stay in employment beyond their contractual retirement age where that age is lower than the State pension age of 66, reports RTE.
At present, many employees are required to leave their jobs at the traditional retirement age of 65, as specified in their contracts.
This means thousands of workers retire a year before becoming eligible for the State pension, reports RTE.
The changes will allow employees to continue working for an extra year if they choose, helping to close that gap.
However, there will be no obligation on workers to remain in employment beyond their existing retirement age, reports RTE.
The new entitlement enables employees to formally inform their employer that they do not agree to retire at the age set out in their contract.
Workers must submit this notification at least three months before their intended retirement date and no earlier than 12 months beforehand, reports RTE.
Employers will be obliged to give careful consideration to any such notification and, where they wish to uphold a retirement age, must provide a written response within one month.
They must clearly explain their decision and ensure it meets the stricter legal standards outlined in the legislation, reports RTE.
An employer will not be permitted to insist on retirement unless there is a valid justification for doing so.
The retirement must be objectively and reasonably justified by a legitimate aim, with the method used to achieve that aim being both appropriate and necessary, reports RTE.
The measures will not apply to employees whose retirement age is already 66 or older, nor to occupations where retirement ages are established by law, including An Garda SÃochána and the Defence Forces.
For most public and civil servants, the mandatory retirement age was increased to 70 in 2018, reports RTE.
“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, reports RTE.
To assist with the introduction of the new rules, the Workplace Relations Commission (WRC) has prepared an updated Code of Practice on Longer Working.
Although the code is not legally binding, it can be used as evidence in legal proceedings, reports RTE.
Employees who believe their rights under the legislation have been violated will be able to bring a complaint to the WRC.
Where a complaint is successful, the WRC may direct the employer to remedy the breach or award compensation of up to 104 weeks’ remuneration or €40,000, whichever amount is higher, reports RTE.
Employers found to have breached the legislation may face penalties including a fine of up to €5,000, a prison sentence of up to 12 months, or both.
Director General of the Workplace Relations Commission Audrey Cahill said the revised Code of Practice is designed to help both employers and employees understand and apply the new statutory entitlement, reports RTE.
“It also sets out clear principles in respect of employees aged 66 and over who wish to continue working,” Ms Cahill said, reports RTE.
The Irish Congress of Trade Unions (ICTU) welcomed the legislation but pointed out that it only covers extensions up to the age of 66 and does not affect an employee’s existing right to argue that mandatory retirement beyond that age is discriminatory under the Employment Equality Acts.
“Restricting the use of mandatory retirement ages is good for workers, business and the economy,” said ICTU General Secretary Owen Reidy, reports RTE.
“It is essential in a tight labour market, an ageing population and for the future sustainability of the public finances,” Mr Reidy added, reports RTE.
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