In Japan, employment law does not set a single retirement age that automatically applies to all employees. Instead, employers establish their own mandatory retirement age, known as teinen, through their Rules of Employment.
However, employers must comply with certain legal requirements:
A mandatory retirement age cannot be set below 60.
If an employer sets a mandatory retirement age below 65, the employer must provide employees who wish to continue working with an opportunity for continued employment until at least age 65.
Continued employment beyond age 65 and up to age 70 is encouraged under Japanese law. However, an employer may have additional obligations where its own Rules of Employment establish a higher age for continued employment.
Remote People's retirement and continued employment policy
Remote People's Rules of Employment provide for continued employment beyond the statutory minimum.
Under Article 35:
The mandatory retirement age is 60, effective on the last day of the month in which the employee turns 60.
Employees who wish to continue working must be offered continued employment until age 75, unless independent and valid grounds for dismissal or retirement apply under the Rules of Employment or applicable law.
What this means in practice
Employees who reach age 60 and wish to continue working may continue their employment through age 75.
Continued employment cannot be declined based on the employee's age alone. Any decision not to continue employment must be based on separate and valid grounds for dismissal or retirement under the applicable Rules of Employment or Japanese law.
Onboarding an employee aged 60 or over
Employees who are aged 60 or over can be onboarded and employed through Remote People in Japan in accordance with the applicable Rules of Employment.
Their onboarding should be handled as a standard employment pathway rather than as an exception based solely on age.
When onboarding an employee of post-retirement age, please consider the following.
Retirement and re-employment
The employee's age may affect how their employment and any applicable retirement or re-employment arrangements are handled.
Where an employee has reached the company's mandatory retirement age but wishes to continue working, continued employment should be managed in line with Article 35 of the Rules of Employment.
Social insurance
An employee's age may affect their social insurance contributions and eligibility in Japan.
For more information, see How does social insurance in Japan work?
Visa considerations
For non-Japanese employees who require visa sponsorship, continued employment may also involve additional immigration considerations.
Work visa status and renewal requirements can depend on factors such as the employee's role, employment terms and visa status. Remote People will review and flag any relevant visa considerations separately where applicable.
Key takeaway
Remote People's Rules of Employment provide employees who wish to continue working with a continued employment pathway up to age 75, subject to any independent and valid grounds for dismissal or retirement.
As a result, onboarding an employee who is aged 60 or over should generally be treated as a standard employment arrangement. Employment should not be declined based on age alone where the employee is eligible for continued employment under Article 35 of the Rules of Employment.