Newsletter
Ministry of Labor Issues “Reference Guidelines for Negotiation between Employers and Employees on Postponing Retirement Age and Reemployment after Retirement”
Ministry of Labor Issues “Reference Guidelines for Negotiation between Employers and Employees on Postponing Retirement Age and Reemployment after Retirement”
Susan Lo/Gloria Chu
In response to the dual trends of population aging and declining birth rates in Taiwan, and to implement the legislative intent behind the amendment to Article 54 of the Labor Standards Act (hereinafter referred to as the “LSA”), the Ministry of Labor issued the “Reference Guidelines for Negotiation between Employers and Employees on Postponing Retirement Age and Reemployment after Retirement” on January 14, 2026. The purpose of these guidelines is to encourage senior workers to remain in the workforce and to provide clear guidance for both employers and employees to negotiate the postponement of retirement and reemployment after retirement.
The main points of these guidelines include:
1. Clarification of the Legislative Intent and Methods for Continued Employment under Article 54 of the LSA
(1) Protection of Employment Rights: Paragraph 1, Article 54 of the LSA stipulates that the age of 65 is the minimum standard for mandatory retirement. The guidelines clarify that the purpose of this provision is to protect employees’ rights to employment, and it does not require employees to retire upon reaching the age of 65.
(2) Multiple Models for Continued Employment: There are three primary ways for senior workers to remain in the workforce: continued employment (without immediate mandatory retirement), negotiation to postpone the retirement age (if this option is chosen, the terms of the employment contract remain unchanged, and both parties continue to perform the original “continuous employment contract”), and reemployment after retirement.
2. Regulation of Negotiation Procedures and Matters Requiring Attention
(1) Parties and Timing of Negotiation: Both employers and employees may initiate negotiations to postpone the retirement age, and the law does not restrict the timing of such proposals. Both parties should act in good faith and negotiate at an appropriate time.
(2) Preparation before Negotiation: It is recommended that both parties assess suitable options in advance (such as postponing retirement or reemployment after retirement), expected retirement age, contract duration, and whether to adjust job content, location, or working hours.
(3) Right to Union Accompaniment: If employees deem it necessary, they may request the enterprise’s labor union to accompany them during negotiations.
(4) Written Agreements and Records: To avoid disputes, it is recommended that the results of negotiations (such as retirement age, duration of fixed-term contracts, etc.) be documented in writing, and that meeting minutes include the date, participants, content, and outcomes.
3. Strengthening Employers’ Statutory Obligations and Protective Measures
(1) Employers May Not Unilaterally Change Employment Conditions: During the period of negotiation to postpone retirement, employers may not unilaterally change an indefinite-term contract to a fixed-term contract, nor may they unilaterally alter employment conditions.
(2) Pension and Insurance Systems:
(i) Pension: For those who postpone retirement, employers shall continue to contribute to the pension fund (old scheme) or make contributions under the new scheme; for those reemployed after retirement, the Labor Pension Act shall apply.
(ii) Insurance: Employers must, in accordance with the law, enroll senior workers in labor occupational accident insurance and may not refuse employees’ voluntary participation in labor insurance.
(3) Workplace Safety and Health Examinations: Employers must ensure workplace safety for senior workers, and employees aged 65 or above must undergo a general health examination once a year.
(4) Prohibition of Age Discrimination: Employers may not treat employees differently on the basis of age, and during the term of a fixed-term contract, may not terminate the contract on the grounds of the employee reaching the age of 65.
The issuance of these guidelines demonstrates the proactive efforts of the competent authority for labor affairs in promoting the employment of senior workers and facilitates more flexible talent allocation for enterprises. Lee and Li’s Labor Practice Group has long been attentive to changes in labor regulations and assists enterprises in optimizing mechanisms for retaining senior talent and handling related negotiation procedures. Should you have any needs, please feel free to contact our team of experts at any time.