The Joint Committee on Enterprise, Trade and Employment has published its pre-legislative scrutiny report of the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 which recommends 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.”

In March the government approved a Bill to outlaw a mandatory retirement age for any person who is not willing to leave a company before qualifying for a State pension. Employment Minister Simon Coveney received Cabinet approval for the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2023.

The Bill was then referred to the Oireachtas Joint Committee on Enterprise, Trade and Employment for pre-legislative scrutiny. In May of this year the committee suggested the Department of Enterprise should have further engagement with social partners and Workplace Relations Commission to see can a pathway to a more flexible age friendly exit from the workplace be developed and enshrined in this legislation.

The Committee made nine recommendations including 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.

Further engagement between the department, social partners, and the Workplace Relations Commission should see whether a pathway to a more flexible “age-friendly exit” can be developed so that, in time, the idea of a rigid termination date would become the exception and replaced with a flexible date suited to a person’s circumstance.

The report also called for a comprehensive information campaign to make the public aware of their rights and supports in retirement situations in order to support the worker’s sense of control around their decisions.

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.