Government mandate forces companies to keep retirement-age employees on the books until 65.
By Garry Kranz Comments 0 | Recommend 0
Baby Loomers: Employers in Japan appear to be adhering to a government law
enacted in 2006 that requires them to extend the employment of workers 65 and
older. The law essentially amounts to a government mandate on companies.
According to various published reports, including one at Manufacturing.net, more
than 96 percent of a reported 94,000 Japanese companies had implemented measures
to keep older employees on the payroll until they become 65.
Under the
Japanese precept, companies also must submit reports on these workers each year
to the country’s ministry of health, labor and welfare. A survey by the
government ministry reportedly found that although most companies are complying,
a mere 2.1 percent had abolished mandatory retirement systems, while 12.5
percent extended employees’ retirement age. More than 85 percent of firms
feature measures for re-employment or continuous employment of seniors. Nearly
40 percent of companies have adopted systems that permit employees to work past
age 65, still short of the ministry’s target of 50 percent by 2010.
Workforce Management contributing editor Garry Kranz is based in Richmond, Virginia. E-mail editors@workforce.com to comment.
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