An Oireachtas committee has backed plans to abolish the ability of firms to force employees to retire before the age at which they first become entitled to a State pension.
Publishing its pre-legislative scrutiny report of the General Scheme of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024, the Joint Committee on Enterprise, Trade and Employment said forced retirement can significantly impact the financial security of individuals.
"This can lead to financial strain and insecurity, particularly for those who may rely on continued employment for income," said committee Leas Chathaoirleach, Senator Garret Ahearn.
"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 has made a number of recommendations to improve the legislation.
These include emphasising the need to protect the State pension as a crucial source of income for older people.
It also proposes that the requirement for the worker to give three months' notice in writing to their employer is overly onerous on the worker.
"The Committee recommends the onus be placed on employers," it says.
"Employers should engage in meaningful dialogue with employees regarding retirement plans and respect their choices and preferences."
The committee also suggests 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.
It also says that it supports the view 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.
It also recommends greater flexibility in work patterns to provide age-friendly workplaces, which could assist in expanding the labour market.
