In Partners in Logistics Limited v Eugene McEnery (EDA2633), the Labour Court overturned an earlier Workplace Relations Commission (WRC) decision and awarded an employee €15,000 in compensation after finding that his employment had been terminated on the grounds of age.
The decision reinforces the importance of ensuring that mandatory retirement ages are objectively justified, consistently managed and supported by appropriate contractual arrangements.
It is particularly relevant following the introduction of the Employment (Contractual Retirement Ages) Act 2025, which commenced on 29 June 2026 and introduced additional protections for employees wishing to remain in employment until State Pension age.
Background to the Case
The employee had worked as a warehouse operative with Partners in Logistics Limited since 2003.
His contract of employment contained a mandatory retirement age of 65.
Ahead of his 65th birthday in December 2023, the employee requested permission to continue working beyond the company's normal retirement age.
The employer agreed to extend his employment. However, no formal fixed-term contract was issued, and no specific end date was agreed.
In April 2024, the employer informed the employee that he could either retire or move to a three-day working arrangement.
The employee declined both options.
On 23 April 2024, he was informed that his employment would terminate, with his final working day subsequently confirmed as 14 June 2024.
The employee challenged the decision, arguing that the employer had permitted other employees to work beyond 65 and that there was no objective justification for requiring him to retire.
The employer maintained that the decision was influenced by legitimate operational considerations, including changes to its business requirements and the physical demands associated with the employee's role.
The employee brought a complaint under the Employment Equality Acts, alleging discrimination on the grounds of age.
The WRC initially dismissed his complaint, finding that the retirement arrangements were objectively justified.
However, the employee appealed the decision to the Labour Court.
What Did the Labour Court Decide?
The Labour Court overturned the WRC decision and found that the employee had been discriminated against on the grounds of age.
The Court accepted that the employer had an established contractual retirement age of 65.
However, the central issue was whether the employer could subsequently rely on that retirement clause after allowing the employee to continue working beyond the specified age.
The Court identified two significant issues.
1. The Employer Had Effectively Waived Its Right to Rely on the Retirement Clause
Under Section 34(4) of the Employment Equality Acts, employers may establish mandatory retirement ages where they are objectively and reasonably justified by a legitimate aim and the means of achieving that aim are appropriate and necessary.
However, the Labour Court determined that by permitting the employee to continue working beyond his contractual retirement age, the employer had effectively waived its entitlement to rely on that provision in the circumstances.
The employer could not simply return to the original contractual retirement clause several months later to justify terminating the employee's employment.
2. No Fixed-Term Contract Had Been Put in Place
The Court also considered Section 6(3)(c) of the Employment Equality Acts, which permits certain fixed-term employment arrangements for employees who have reached their retirement age, provided the statutory requirements for objective justification are satisfied.
In this case, the employer had not issued a fixed-term contract specifying the duration of the extension.
The arrangement was effectively open-ended.
Consequently, the employer could not rely on the statutory exception relating to objectively justified post-retirement fixed-term contracts.
The Labour Court also noted that while the employer had referred to operational difficulties and reduced work availability, the correspondence terminating the employee's employment relied on his age rather than those business considerations.
The Court concluded that the employee's employment had been terminated because of his age and that the relevant statutory exceptions did not apply.
The employee was awarded €15,000 in compensation for age discrimination.
Can Employers Still Enforce Mandatory Retirement Ages?
Yes. However, employers must be able to demonstrate that their retirement arrangements comply with Irish employment equality legislation.
A mandatory retirement age must be objectively and reasonably justified by a legitimate aim, and the means of achieving that aim must be appropriate and necessary.
Simply including a retirement age in an employment contract does not automatically make it enforceable.
Employers must also consider how retirement arrangements are applied in practice, including whether employees have previously been permitted to work beyond the specified age.
This case demonstrates that the way an employer manages an extension of employment can have significant consequences for its ability to subsequently enforce retirement arrangements.
Important Legislative Changes Introduced in June 2026
The decision is particularly relevant in light of the Employment (Contractual Retirement Ages) Act 2025, which commenced on 29 June 2026.
The legislation introduced new rights for eligible employees whose contractual retirement age falls below the State Pension age, currently 66.
Under the legislation, eligible employees may formally notify their employer that they do not consent to retiring at their contractual retirement age and wish to remain in employment until State Pension age.
Generally, employees must provide between three and twelve months' notice of their intention to remain in employment.
Where an employer intends to enforce the contractual retirement age following a valid notification, it must respond in writing within one month and demonstrate that the decision is objectively and reasonably justified.
An updated Code of Practice on Longer Working also came into effect on 29 June 2026, providing guidance to employers and employees on managing retirement discussions and requests to remain in employment.
Importantly, the circumstances in the McEnery case arose before this legislation commenced. The Labour Court's decision was therefore determined under the Employment Equality Acts rather than the new statutory framework.
Nevertheless, the case provides a timely reminder of the importance of carefully managing retirement arrangements.
What Does This Mean for Employers?
Employers should review their retirement policies and contractual arrangements to ensure they remain compliant with current legislation.
1. Review Contractual Retirement Clauses
Employers should ensure that retirement provisions are clearly documented and supported by legitimate, objectively justifiable business reasons.
A contractual clause alone is not sufficient to establish that a mandatory retirement age is lawful.
2. Formalise Extensions Beyond Retirement Age
Where an employer agrees to extend an employee's employment beyond the normal retirement age, the arrangement should be clearly documented.
Where a fixed-term extension is appropriate, employers should ensure that the arrangement is objectively justified and that the contract clearly specifies the agreed duration and terms.
3. Apply Retirement Policies Consistently
Employers should consider how retirement arrangements have been applied across the organisation.
Allowing some employees to continue working beyond retirement age while requiring others to retire may create legal risks where differences in treatment cannot be objectively justified.
4. Engage With Employees Before Retirement
Employers should engage with employees approaching retirement age to understand their intentions and consider any requests to remain in employment.
These discussions should be handled sensitively and in accordance with the applicable statutory requirements.
5. Ensure Termination Decisions Reflect the Genuine Reason
Where employment is ending because of operational changes, redundancy or another legitimate business reason, employers should ensure that the appropriate process is followed.
Retirement should not be used as a substitute for addressing unrelated employment or operational matters.
6. Update Policies to Reflect the 2026 Legislative Changes
Employers should ensure that retirement policies and procedures reflect the Employment (Contractual Retirement Ages) Act 2025 and the updated Code of Practice on Longer Working.
This includes establishing procedures for receiving, assessing and responding to employee notifications to remain in employment.
The WorkWise Perspective
This decision demonstrates that retirement clauses must be managed carefully throughout the employment relationship, not simply relied upon when an employer wishes to bring employment to an end.
While employers may have legitimate reasons for establishing retirement ages, those arrangements must be objectively justified and implemented consistently.
Of particular significance is the Labour Court's finding that permitting an employee to work beyond their contractual retirement age, without putting an appropriate fixed-term arrangement in place, prevented the employer from subsequently relying on the original retirement clause in this case.
For employers, this highlights the importance of documenting agreed extensions and considering the legal implications before permitting an employee to continue working beyond their contractual retirement age.
The introduction of new retirement legislation in June 2026 makes this an especially important area for employers to review.
The key takeaway is clear: an established contractual retirement age does not provide an unrestricted right to terminate employment, particularly where an employee has already been permitted to continue working beyond that age.
At WorkWise HR Solutions, we support employers in reviewing employment contracts, developing retirement policies and managing complex employee relations matters.
Our approach focuses on providing practical, commercially focused HR guidance that helps employers meet their obligations while managing the operational needs of their businesses.
Need support reviewing your retirement policies or managing an employee's request to remain in employment? Contact WorkWise HR Solutions for professional HR guidance and support.
Case Reference: Partners in Logistics Limited v Eugene McEnery (EDA2633)
Original WRC Decision: ADJ-00052442
Court: Labour Court of Ireland
Outcome: €15,000 awarded for age discrimination.
Disclaimer: This article is provided for general information purposes and does not constitute legal advice.