What does the employee need to do?

An employee who wants to continue working beyond their contractual retirement age must notify their employer in writing.

The notice should clearly state that the employee does not consent to retire at the contractual retirement age and wishes to continue working until State Pension age.

Employers should ensure managers know what to do if this type of notification is received. It should be treated as a formal HR matter and passed to the appropriate person or team.

How do employees extend their retirement age?

Employees must formally notify their employer that they do not consent to retire at their contractual retirement age. They must provide either:

• at least 3 months’ notice, and no more than 12 months’ notice before the intended retirement date
• Where a contract specifies a longer notice period, employees must give that notice or 6 months (whichever is shorter).

 

What must employers do when they receive a notification?

Once an employer receives a valid written notification, they should consider it carefully and deal with it through a documented process.

The employer may agree to the employee continuing in work. If so, the arrangement should be confirmed in writing within one month of the request and any necessary contract updates should be made.

If the employer does not agree, and wishes to apply the contractual retirement age, the decision must be handled carefully. The employer should not rely only on the fact that the contract contains a retirement age.

The employer should be able to show that applying the retirement age is:

• Objectively and reasonably justified
• Connected to a legitimate business aim
• Appropriate and necessary in the circumstances

This means the decision must be based on real business reasons and supported by evidence.

What is a legitimate business aim?

A legitimate business aim is a genuine reason why the employer may need to apply a retirement age.

Examples may include:

• Intergenerational fairness — allowing younger employees to progress
• Motivation and dynamism — creating real promotion opportunities
• Health and safety — usually in safety-critical roles
• A balanced age structure across the workforce
• Personal and professional dignity — avoiding difficult capability issues with older employees
• Succession planning — making sure key roles can be filled and business continuity is protected

However, these reasons should not be treated as automatic. The employer must be able to explain why the reason applies to the role, the workplace and the specific circumstances.

For example, succession planning may be relevant where the business has a clear plan for a role and can show that continued employment would create a genuine operational issue.

Health and safety may be relevant in some roles, particularly safety-critical roles. But employers should avoid making assumptions based on age. Any decision should be supported by objective evidence.

What does “appropriate and necessary” mean?

Even where there is a legitimate business reason, the employer should consider whether retirement is the right and necessary way to achieve it.

Before deciding, employers should ask:

• Is there evidence to support the business reason?
• Does the reason apply to this employee and this role?
• Are there alternatives to retirement?
• Could the employee work reduced hours?
• Could a fixed-term arrangement be considered?
• Could the employee move into a mentoring, training or advisory role?
• Could redeployment be an option?

This is important because employers should be able to show they considered less restrictive options before deciding that retirement must apply.

How employers can stay compliant

The best way to reduce risk is to have a clear retirement process in place before an issue arises.

Employers should focus on the following areas:

1. Review employment contracts

Check whether contracts contain a retirement age.

Where a retirement age is included, consider whether it is still appropriate and whether the business can justify it. A clause that simply says “retirement age is 65” may not be enough on its own.

2. Update retirement policies

A retirement policy should explain:

• The normal retirement age
• How employees can request to work longer
• Notice requirements
• Who handles the request
• How the request will be assessed
• How the decision will be communicated
• What records will be kept

This gives both the employer and employee a clear process to follow.

3. Train managers

Retirement conversations can be sensitive. Managers should know that they must avoid assumptions about age, health, energy levels or future plans. They should also know not to make informal promises or decisions before HR has reviewed the matter. The right approach is respectful, factual and consistent.

4. Keep written records

Good records are essential. Employers should keep copies of:

• The employee’s written notification
• Any meeting notes
• The reasons considered
• Any alternatives reviewed
• The final decision
• The written response issued to the employee

If a decision is later challenged, these records will help show that the employer followed a fair process.

5. Plan ahead

Retirement should form part of wider workforce planning. Employers should identify key roles where retirement may affect business continuity, skills transfer or succession. This helps the business plan early and avoid rushed decisions. It can also create better outcomes for everyone, such as phased retirement, mentoring arrangements or structured handover periods.

Common mistakes employers should avoid

Employers should avoid:

• Treating retirement as automatic
• Relying only on the contract
• Ignoring written notifications from employees
• Applying different rules to different employees without good reason
• Making assumptions based on age
• Failing to consider alternatives
• Failing to give written reasons
• Keeping poor records

These mistakes can increase the risk of disputes, employee relations issues and claims.

Key takeaway for employers

Retirement age in Ireland is no longer something employers can manage on autopilot. If an employee with a contractual retirement age below State Pension age wants to continue working, the employer must deal with the request carefully, fairly and in writing.

For employers, the most important steps are to review contracts, update retirement policies, train managers and keep clear records.

At HRconsultants.ie (formerly O’Reilly Consulting Group), we support employers with practical HR advice, compliant workplace policies and clear processes for managing retirement and longer working requests.

FAQ: Retirement age in Ireland

Can an employee work beyond 65 in Ireland?

Yes, in some cases. Where an employee has a contractual retirement age below State Pension age, they may be able to notify their employer that they wish to continue working until State Pension age.

Does an employer have to agree to longer working?

Not always. However, if an employer wants to apply the contractual retirement age, they must be able to justify the decision and follow a fair process.

Can employers still have a retirement age?

Yes. Employers can still have a retirement age, but it should be objectively justified and applied consistently.

What is the State Pension age in Ireland?

The State Pension age is currently 66.

What should employers do if an employee asks to work longer?

Employers should review the request carefully, consider the business impact, look at possible alternatives and respond in writing within 1 month.

What should a retirement policy include?

A retirement policy should explain the normal retirement age, the process for requesting longer working, how decisions are made and how records are kept.

What are examples of legitimate reasons for applying a retirement age?

Examples may include workforce planning, succession planning, health and safety, intergenerational fairness and creating progression opportunities. The reason must be relevant and evidence-based.

How can HRconsultants.ie help?

Hrconsultants.ie can help employers review contracts, update retirement policies, train managers and manage requests from employees who wish to work beyond their contractual retirement age. Contact us today about how we can help your business.