Written answers

Tuesday, 24 September 2013

Department of Jobs, Enterprise and Innovation

Employment Rights Issues

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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296. To ask the Minister for Jobs, Enterprise and Innovation his plans to legislate to allow people to work past the age of 65 should they wish to do so in order to reduce the gap between the time when a person retires and when they are eligible for a State pension; and if he will make a statement on the matter. [39448/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I would clarify that statutory law already permits private sector workers to work past the age of 65, as there is no statutory retirement age for such employees in Ireland. However, a contract of employment may contain a retirement age. The existence of a clause in the employment contract setting out a maximum retirement age is a matter of contract between the employer and employee and they may agree to alter such a clause.

As matters currently stand for those employees who are obliged by their contract of employment to retire at 65 years but will not receive the State pension until 66 years, the Department of Social Protection has indicated that, in terms of financial supports, social welfare benefits will continue to be available to the age of 66 for those who are contractually obliged to leave employment. Also, existing legislation provides that jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66, subject to the person having paid 156 or more qualifying contributions and satisfying the general scheme conditions.

The Department of Social Protection, which has lead responsibility for the State pension and pension age policy, is chairing an inter-Departmental Group on Working and Retirement issues, on which my Department is represented. That Department organised and chaired a Working and Retirement Forum in Croke Park last December, at which a range of stakeholder groups discussed, amongst other matters, issues related to the alignment of mandatory retirement age practices with the new State pension age. The Group is currently considering the issues highlighted at the Croke Park Forum and is preparing preliminary proposals in this regard.

The Employment Equality Acts 1998 to 2011, which aim to protect against discrimination in relation to access to employment on a number of grounds including age and give effect in national law to the EU Directive 2000/78/EC, come within the remit of my colleague the Minister for Justice, Mr Alan Shatter T.D. The Court of Justice of the European Union (CJEU) has made rulings in a series of age-discrimination cases concerning Directive 2000/78/EC which prohibit discrimination in employment and occupation on various grounds, including age. The CJEU has clarified that, under Directive 2000/78/EC, mandatory retirement ages may be set down if, within the context of national law, they are objectively and reasonably justified by a legitimate social policy aim.

With regard to the maximum retirement age for the public service, rules on retirement age vary, but are generally set down in legislation. Responsibility for these rules falls within the remit of my colleague, Mr Brendan Howlin T.D., Minister for Public Expenditure and Reform.

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