Dáil Éireann Debate, Monday - 11 September 2023
573. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he will review the position whereby many employees are obliged to retire from their employment at the age of 65 years even if they wish to continue working; and if he will make a statement on the matter. [38291/23]
View answerCurrently there is no general retirement age for employees in Irish legislation, apart from certain public sector employees where statutory retirement ages may apply. A contract of employment often sets out a specific retirement age but this is a matter of contract between the parties. 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.
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.
There is one key commitment relating to contractual mandatory retirement age which is the responsibility of my Department. The proposal is to introduce measures that allow, but do not compel, an employee to stay in employment until the State Pension Age. The Government has committed that the State Pension age will remain at 66.
Officials are considering what detailed measures may be required to preclude enforceability of contractual mandatory retirement ages before the age at which an employee may first become entitled to the State Pension. Primary legislation will be required to implement this Government commitment. It is the intention that such legislation will be introduced within the same timeframe as the introduction of wider reforms by the Department of Social Protection, in order that the package of pension measures can come into effect at the same time.
I would also draw your attention to the Workplace Relations Commission's (WRC) Code of Practice on Longer Working, which is available on the WRC website. This Code of Practice sets out guidance for employers, employees and their representatives to follow during the engagement between employers and employees in the run up to retirement including responding to requests to work beyond the retirement age in the employment concerned.
