Joint Committee on Enterprise, Trade and Employment recommends the abolition of mandatory retirement

The General Scheme aims to preclude enforceability of contractual mandatory retirement ages before the age at which an employee may first become entitled to the State Pension.

Speaking on the report, Committee Leas Chathaoirleach Senator Garret Ahearn said: “Throughout the discussion it was clear there is a mandatory retirement age for many workers. This General Scheme aims to reconsider the fairness of compelling people to retire from work before they have reached the State pension age.”

“Forced retirement can significantly impact the financial security of individuals, especially if they are not financially prepared to stop working at the designated age. This can lead to financial strain and insecurity, particularly for those who may rely on continued employment for income."

“The Committee supports that at the age of 65, workers should have the choice to continue working if they are able, without the assumption that they must prove their ability. The discussion highlighted the difference between being forced to retire and choosing to retire based on individual circumstances."

“The Committee made a number of recommendations aimed at improving this important piece of legislation. When this legislation proceeds, the Joint Committee requests that the recommendations and key issues raised in this report and identified during the pre-legislative scrutiny process are taken on board by the Government and implemented.”

The Committee makes nine recommendations which are outlined below:

• The abolition of mandatory retirement. The Committee supports choice-based retirement and recommends that the necessary supports be provided. The Committee further supports emphasising the need to protect the State pension as a crucial source of income for older individuals.

• The provision in the proposed Bill to require workers to give three months’ advance written notice to their employer is onerous on the worker. The Committee further recommends including a provision that provides where a notice period has commenced, it must not be interrupted without the agreement of both parties. The Committee recommends the onus be placed on employers. Employers should engage in meaningful dialogue with employees regarding retirement plans and respect their choices and preferences.

• The Department of Enterprise, Trade and Employment should have further engagement with the Social Partners and the WRC to see can a pathway to a more flexible age friendly exit from the workplace be developed and enshrined in this legislation, so that over time the idea of a rigid termination date would become the exception based on some specified criteria and replaced with a flexible date more suitable to a person’s circumstances.

• A comprehensive information campaign should be undertaken to provide awareness to the public who may not be aware of the supports and rights in retirement situations. The Committee acknowledges the high motivation among people among people across Europe, including Ireland, to continue working beyond traditional retirement ages. Motivation factors may vary.

• The Committee supports that at the age of 65, workers should have the choice to continue working if they are able, without the assumption that they must prove their ability.


• The Committee noted that the choice on when to retire should not be impacted by additional factors. The Committee further recommend that the current system forces individuals to make a choice between claiming benefit payments for 65-year-olds and continuing to work. The Committee suggest that further examination is required into this limitation as it may not align with their preferences or financial needs.

• There should be further engagement with the Department of Social Protection to examine rules surrounding benefit payments for 65-year-olds, including requirements like the number of PRSI contributions and the specifics of the contribution year, as these rules are overly complex. This complexity can lead to confusion and hinder understanding, potentially preventing eligible individuals from accessing the benefits they are entitled to, and the Committee recommends and advocates for more simplified guidelines.


• The Committee recommends greater flexibility in all work patterns to provide age-friendly workplaces, and that by providing this flexibility, it could help expand the labour market generally.


• The Committee advocate the need for greater awareness and improvement in supporting an individual employee’s sense of control for their retirement decisions and their well-being after retirement. The Committee recommend greater supports for post-retirement well-being.