Employees over 60? Read this

Currently, there is no single mandatory retirement age for employees in Ireland. Typically, an employee’s retirement age is set out in their Contract of Employment – this can vary from one Company/Industry to the next. Alternatively, precedent/established custom and practice within the Company can determine the retirement age of its employees.

 It is important for Companies to establish, and consistently enforce, a Retirement Policy as, if an employee has not been retired in line with the Company Retirement Policy, the policy is deemed to not have been established in the business. In other words, no policy exists for retirement if all employees are not retired at the age that is set out in the Company’s Retirement Policy.

 The aims of the Retirement Policy are:

To ensure that employees make the transition from work to retirement as smoothly as possible.

  • To ensure that retiring Employees are treated fairly.
  • To enable employees to leave their employment with dignity and respect.
  • To help maintain good workplace relationships with other employees
  • To comply with all applicable legislation.

 Procedure for Retiring and Re-engaging Employees:

In some cases employers may wish to retain the services of an employee beyond their retirement age. This is something that requires careful consideration when drafting a retirement policy; it may be stipulated that the Company will consider requests to work beyond normal retirement age in exceptional circumstances. In these circumstances, there is a process that must be followed to ensure that the employee is retired and re-engaged successfully, and that the Company Retirement Policy is not invalidated as a result: 

  • Management should write to the employee notifying them of their intended date of retirement.
  • The Company will issue this notice not less than 3 months before that retirement date.
  • Where an Employee wishes to work beyond his/her retirement age, they must make a written request to the Company not less than 1 Month before their intended retirement date.
  • There should be a break in service for a minimum of 3 months before an employee can take up a new offer of employment. The Unfair Dismissals Act and Redundancy Act will not apply to this new employment relationship.
  • In any event this should only be permitted for one year only and will be reviewed annually. These terms and conditions can be outlined in a new Contract of Employment.   

If you do not currently have a Retirement Policy in place it is worth making contact with a HR Provider in order to obtain some advice on the matter.