Japan Firms Slow to Embrace Law Urging Employment until 70

Economy Politics

Tokyo, March 26 (Jiji Press)--The revised law for the stable employment of elderly workers is set to take effect in Japan next Thursday, the first day of April and fiscal 2021, obliging companies to make efforts to continue employing staff until they reach 70 years old.

In the country, companies are currently required to introduce systems to allow all workers to continue to be employed until 65, depending on their hopes.

As of June 1 last year, only one in every three companies guaranteed continued employment for staff aged 66 or older, according to a labor ministry survey.

Ahead of the introduction of the revised law, there are moves by some companies, including Tsu, Mie Prefecture-based Hyakugo Bank <8368>, to raise the upper age limit for continued employment to 70.

But a Teikoku Databak Ltd. survey last month revealed that 32.4 pct of surveyed companies had no plans to take action in line with the revised law, while 14.9 pct said they were not sure about the law.

[Copyright The Jiji Press, Ltd.]

Jiji Press