New retirement age rights for employees are to take effect from next week, the Government have confirmed.
From Monday, 29 June, eligible workers can choose to work beyond the contractual retirement age, where that age is below the State pension age of 66. These new rules will allow works the option of working for an additional year, in order to bridge the gap, but there is no obligation to do so.
As things stand, thousands of employees had been forced to retire once they reached the traditional retirement age of 65, as per their employment contracts, a year before their State pension begins.
Employees will now be allowed to formally notify employers if they do not wish to retire at the contractual retirement age. In order to do this, they must provide at least three months' notice and no less that 12 months' notice prior to the intended retirement date.
Should they intend to enforce a retirement age, employers must issue a written response within a month. They are also required to consider any notification. They must also clearly outline the decision and ensure that it complies with the higher legal threshold set out in the legislation.
They cannot request that an employee retires unless they can justify the decision. They must be able to justify this decision objectively by means of a legitimate aim and that the means of achieving this am is necessary and appropriate.
Minister for Enterprise, Tourism, and Employment, Peter Burke spoke about these new laws in a statement press release, reported by RTÉ: "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".
These new rules do not apply to workers with a retirement age of 66 or higher, or if their retirement age is set by law by An Garda Síochána and the Defence Forces. The compulsory retirement age for most employees in the public and civil service increased to 70 in 2018.
Elsewhere, the Workplace Relations Commission (WRC) have produced an updated code of practice on Longer Working, in order to support the implementation of these new laws.
While this is not legally binding, it remains admissible as evidence in legal proceedings.
Any claims of rights being breached can also be brought before the WRC. Should a case be upheld, employers could be ordered to address any alleged breach by the WRC, or even award compensation of up to 104 wees' remuneration or €40,000, whichever is greater.
Any employer who breaches these new rules could face fines of up to €5,000 or up to 12 months imprisonment, or even both.
RTÉ reported that Director General of the Workplace Relations Commission, Audrey Cahill said in a statement that the updated Code of Practice will support both employers and employees regarding understanding and applying the statutory rights.
She said: "It also sets out clear principles in respect of employees aged 66 and over who wish to continue working".
These new laws were also welcomed by the Irish Congress of Trade Unions (ICTU). However, they have also highlighted that it only applies for an extension up to age 66. They added that it does not apply to a workers' existing rights to claim that forced retirement beyond the age of 66 is discriminatory on the grounds of age under the Employment Equality Acts.
In a statement, ICTU's General Secretary, Owen Reidy said: "Restricting the use of mandatory retirement ages is good for workers, business and the economy", adding: "It is essential in a tight labour market, an ageing population and for the future sustainability of the public finances".
