Written answers

Tuesday, 8 December 2015

Department of Jobs, Enterprise and Innovation

Employment Rights

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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200. To ask the Minister for Jobs, Enterprise and Innovation his views that there would be cost implications for the Exchequer from ending age-related compulsory retirement in the private sector; and if he will make a statement on the matter. [43743/15]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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201. To ask the Minister for Jobs, Enterprise and Innovation his views on the impact of ending age-related compulsory retirement in the private sector; and if he will make a statement on the matter. [43744/15]

Photo of Gerald NashGerald Nash (Louth, Labour)
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I propose to take Questions Nos. 200 and 201 together.

Apart from public sector employees, where certain statutory retirement ages may apply, there is no statutory retirement age for employees in Irish legislation. A contract of employment will generally contain a retirement age but this is a matter of contract between the parties.

The upper age limit for bringing claims under the Unfair Dismissals Acts 1977 to 2007 was removed by a provision in the Equality Act 2004. It is now the case that a person of any age, when dismissed, may take a case under the Unfair Dismissals Acts unless she or he has reached the “normal retiring age for employees of the same employer in similar employment”, if one exists. In such circumstances, the burden of proof ison the employer to prove the normal retiring age. Furthermore, the upper age limit of 66 years for receipt of statutory redundancy payments was removed by the Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act 2007.

As the issue that arises around compulsory retirement at a given age is whether this entails discrimination on age grounds, the more usual avenue of redress for employees compulsorily retired is to take a claim, under the Employment Equality Acts, to the Workplace Relations Commission.

Responsibility for employment equality legislation rests with my colleague, the Minister for Justice and Equality, Frances Fitzgerald T.D. As the Deputy is aware, Minister Fitzgerald is currently bringing the Equality (Miscellaneous Provisions) Bill through the Houses of the Oireachtas. The Bill amends Section 34(4) of the Employment Equality Acts to bring it fully into line with Framework Directive 2000/78/EC and the interpretation of that Directive by the Court of Justice of the European Union (CJEU). The CJEU rulings provide that it is not unlawful for an employer to fix a compulsory retirement age for employees provided it can be objectively and reasonably justified by a legitimate aim, including legitimate employment policy, labour market and vocational training objectives, and if the means of achieving that aim are appropriate and necessary.

Issues around retirement age generally are very complex and require a Whole-of Government approach. In addition to the issues set out above they also raises significant issues in respect of pensions policy and the State Pension Age which come within the remit of the Minister for Social Protection. Retirement age issues have been brought into sharp focus by the ending of the State Pension (Transition) and the standardising of the State pension age at 66. In this regard, I understand that the Department of Public Expenditure and Reform is currently conducting a preliminary analysis of the issues involved, and the Minister for Public Expenditure and Reform intends to bring a Memorandum to Government in due course.

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