Managing Mandatory Retirement and Continued Employment
Track employees approaching mandatory retirement age and manage post-retirement continued employment (re-hire or extended service).
[Act on Stabilization of Employment of Elderly Persons]
- Employers must take measures to ensure employment up to age 65 (abolish mandatory retirement, raise retirement age, or implement continued employment)
- Best-effort obligation to provide employment opportunities up to age 70 (since 2021)
[Managing retirement age in WorkVell]
HR → Employee Master → Retirement & Continued Employment tab
- Auto-calculates retirement date from date of birth
- Alerts 3 and 6 months before retirement date
[Recording continued employment]
- 1.Employee Master → Change to Continued Employment
- 2.Select new employment type (re-hired / extended service)
- 3.Enter new conditions (salary, hours, role)
- 4.Issue continued employment contract (supports e-signature)
[Social and employment insurance]
- Social insurance and employment insurance continue under re-employment
- Watch for pension earnings adjustment (zaishoku rourei nenkin) impact on salary
[Processing retirement]
If not continuing: same as standard separation process.
HR → Separation Processing
Issue employment separation certificate and submit insurance cancellation notices.
⚠ Significant reductions in pay for re-employed workers require careful consideration under equal pay principles.
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