Increase in the national retirement
age: An amendment to an existing law that
increases the minimum retirement age to 60 was passed on April 30,
2013. Large companies with 300 or more employees were required to
comply in 2016.
From January 1, 2017, the new retirement age will also apply to
small companies with less than 300 employees. Retirement at 60 will
therefore apply in all organisations, regardless of the size of the
Some companies already subject to the new retirement age have
been introducing a "wage peak system" to reduce the costs
related to extended employment. A wage peak system involves
applying regular salary reductions – instead of raises
– to employees after they reach a certain age, until their
retirement. Subsidies are available for employers who introduce
this system (to support employees who would receive less salary due
to the wage peak system), subject to the applicable requirements,
and provided the system is set out in a collective bargaining
agreement or the company rules.
(1) Review and update any internal policies and procedures
that may conflict with the retirement age.
(2) Consider implementing a wage peak system. Take
specialist advice on how to do this and what the impact for your
Proposed legal reform
Proposal to amend the Equal Employment Opportunity and
Work-Family Balance Act: Amendments to the
current Act have been proposed, and are currently being reviewed by
the National Assembly. If the amendments are passed, they are
expected to take effect on July 1, 2017.
The suggested changes are:
When an employee brings a sexual harassment complaint, the
employer must: (i) immediately investigate; (ii) if necessary,
isolate the victim from the alleged harasser; (iii) let the victim
present his/her opinion when taking disciplinary action against the
harasser; and (iv) not disclose the damage the victim has suffered.
Administrative fines can be issued for non-compliance with any of
Employees may take up to three days' leave each year to
treat infertility. Employers must grant the leave if an employee
Action required: None at the
moment, but keep track of how the legal situation
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Sticking to what you know in new employment may backfire when client-specific restraints protect an employer's interest.
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