From Department of Enterprise, Trade and Employment
Published on
Last updated on
Minister for Enterprise, Trade and Employment Simon Coveney has announced that Government has approved the drafting of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024:
Following Tuesday’s Cabinet meeting, Minister Coveney said:
"I am very pleased that Government has agreed to the drafting of this important legislation. We know that people are living longer and healthier lives which is hugely positive. The series of landmark reforms the government committed to in response to the Pensions Commission report, which are being led by my colleague Minister Heather Humphreys, will ensure the pensions system is sustainable in the face of demographic change and that people relying on the State Pension have adequate and predictable income in retirement.
"In addition to these reforms, the introduction of this legislation is a crucial step in improving adequacy of income for older workers and effectively creates a new employment right.
"This Bill will reaffirm our long-standing policy to encourage and support longer and fuller working lives, where older people are facilitated in continuing in employment, if they wish to, until the age at which they can first access the State Pension."
The Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund. The Commission’s Report was published on 7 October 2021. It is a comprehensive and authoritative report based on various analyses of population, labour force and expenditure projections; an examination of international approaches; and responses to an extensive consultation process.
In September 2022, in response to the Pensions Commission Recommendations and Implementation Plan, the government committed to a range of pension reforms which will ensure the pensions system is sustainable in the face of demographic change and that people relying on the State Pension have adequate and predictable income in retirement. The majority of the commitments relate to significant reform of the State Pension System and are being led by the Department of Social Protection.
One key commitment relates the introduction of measures that allow, but do not compel, an employee to stay in employment until the State Pension Age.
Currently there is no general retirement age for employees in Irish legislation. In certain public sector employments, statutory retirement ages may apply. Under equality legislation, an employer is currently permitted to set a retirement age, but only in circumstances where it can be objectively and reasonably justified by a legitimate aim, and the means of achieving that aim are appropriate and necessary.
The Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 will deliver a statutory provision which will preclude enforceability of contractual mandatory retirement ages before the age at which an employee may first become entitled to the State Pension, subject to certain exemptions. The legislation will apply to existing and new contracts.
The main provisions of the Bill will provide that: