To cope with the aging society of Taiwan and encourage the senior employee to continuously contribute to the workplace, the Legislative Yuan passed its third reading to approve the amendments to Article 54 of the Labor Standards Act (“LSA”) and certain articles of the Middle-aged and Elderly Employment Promotion Act (“Act”) on 15 July 2024. We summarize below:
1.Amendment to the LSA: According to the amendment, the compulsory retirement age may be extended by the mutual negotiation of both the employer and the employee so as to exclude the provision that the employer may order the employee whose age reaches 65 to retire.
2.Amendment to the Act: According to the amendment to Article 29 of the Act, the employer may provide the assistance measures related to the retirement preparation, adaptation, or re-employment to the employee who reaches the threshold of voluntary retirement or will reach the age of 65 within two (2) years.
David Tsai/Paul Hsu