Workers shouldn't be forced to retire before State pension age, says Oireachtas committee

The joint committee on enterprise, trade and employment's leas chathaoirleach Garret Ahearn said 'the discussion highlighted the difference between being forced to retire and choosing to retire'.

Employers should not be allowed to force a person to retire before they reach the age of entitlement for the State pension, an Oireachtas committee has said.

Once a worker has reached the age of 65, they should have the option to continue working if they are both willing and able to, the joint committee on enterprise, trade and employment said.

It said forced retirement can lead to financial strain where an individual is not financially prepared to stop working and is reliant on continued employment for income, adding that the necessary supports should be provided to enable choice-based retirement.

The committee made a number of recommendations in its pre-legislative scrutiny report of the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 issued on Wednesday which it said aims to reconsider the fairness of compelling people to retire before reaching the State pension age.

It emphasised the need to protect the State pension as a crucial source of income for older individuals.

"The discussion highlighted the difference between being forced to retire and choosing to retire based on individual circumstances," said committee leas chathaoirleach, senator Garret Ahearn.

The report also supports a worker's choice to continue working without the assumption that they must prove their ability.

The committee found the provision requiring workers to provide three months' advance written notice to their employer to be onerous on the worker and recommended the onus be placed on employers.

"Employers should engage in meaningful dialogue with employees regarding retirement plans and respect their choices and preferences," it said.

Greater flexibility

There should be greater flexibility in all work patterns to provide age-friendly workplaces as this would help to expand the labour market, it was recommended. 

The committee also looked at the need for greater supports for post-retirement wellbeing.

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.