New Rules on working after retirement age
The Employment (Contractual Retirement Ages) Act 2025 became law on 16 December last year. It allows employees to refuse early retirement and remain in their jobs until age 66 (the qualifying age for the state pension). Formal commencement isn’t expected until later this year, employers are advised to start preparing now.
If an employee wants to work beyond the age of 66, they’ll need to inform their employer less than a year but more than three months before their scheduled retirement age. Their employer must respond in writing within a month, and if they decline, their reasons must be objective and justified.
This ‘objective justification’ could be due to circumstances like health & safety, organisational structure, or succession planning. But it must be applied specifically to that individual.
The accompanying code of practice is due to be published in the coming months. Ennis Chamber will keep members updated.
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