Mandatory Reemployment Support for Large Companies with Over 1,000 Employees and Retirees Aged 50 and Above

Obligation to Support Reemployment Arises for Over 900 Large Corporations... Up to 50,000 Beneficiaries

[Asia Economy Reporter Kim Bo-kyung] Starting from May, large companies with more than 1,000 employees must provide reemployment support services to retirees aged 50 and above.

The Ministry of Employment and Labor announced on the 31st that it has given legislative notice of the amendment to the Enforcement Decree of the Elderly Employment Act containing this provision.

The Elderly Employment Act, revised in April last year, imposed an obligation on large companies with more than 1,000 employees to support reemployment for retirees. The amendment to the enforcement decree specifies the details of the reemployment support targets and other matters.

According to the amendment, the reemployment support target workers in large companies are those aged 50 or older who have worked for more than one year and retire due to involuntary reasons such as reaching the retirement age. For these individuals, large companies must provide career counseling, vocational training, and job placement services within three years prior to retirement.

With the amendment to the enforcement decree, about 900 large companies will be subject to the reemployment support obligation, and the Ministry of Labor estimates that up to 50,000 workers aged 50 and above in these companies will benefit.

Although the importance of reemployment support services for retirees is increasing rapidly due to rapid aging, only 1.1% of domestic companies provided reemployment support services last year. Among large companies with more than 1,000 employees, only 19.5% provided such support.

Na Young-don, Director of Employment Policy at the Ministry of Employment and Labor, expressed hope that "this will contribute to the efficient utilization of the elderly workforce due to rapid aging and the extension of their labor market participation period."

This content was produced with the assistance of AI translation services.