The
employment regulations must stipulate the
employer's rules regarding retirement (Labour
Standards Law, Article 89, paragraph 1).
In
addition, Article 15 of the Labour Standards
Law states that clearly stipulating the employment
conditions is one of the employer's responsibilities
when entering into an employment contract.
Among the items to be stipulated are matters
regarding retirement and the retirement allowance.
Furthermore, these matters are to be clearly
stated in writing on a form entitled "notification
of employment conditions." Generally
speaking, the items that should be stipulated
are whether or not there is an age based mandatory
retirement system in place; the mandatory
retirement age, if appropriate; the procedure
for voluntary retirement (for example, "the
employee is required to provide notice XX
days in advance of retirement"); and
the grounds and procedure for dismissal.
Another
provision of the Labour Standards Law that
must be borne in mind when establishing regulations
regarding retirement is Article 22. It states
that if a retiring employee requests "a
certificate stating term of employment, job
description, rank within the company, wages,
or grounds for retirement (including the reasons
for dismissal, if the retirement is the result
of dismissal)," such a certificate must
be provided promptly.
A
final provision of the Labour Standards Law
that employers should familiarize themselves
with is Article 23. With regard to settlement
with the employee in the case of retirement,
it states that the employer is obligated to
pay the employee any wages due, as well as
any other monies to which the employee is
entitled, such as deposits, security fees,
or savings, within seven days of the retirement
date.
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For more information:
- Chapter
2 Labour Contract, Labour Standards Law
(548KB)
