You've just hired a new employee, and a few days later, you get a call from HR.
They said they were an outplacement agency and would notify the new employee of their departure on their behalf...? Is this possible?
Yes, in Japan, this is actually happening a lot, especially among the younger generation. Today, we've prepared a column called "HR, I'm in trouble" from Japan.
Original content: https://partners.en-japan.com/qanda/desc_1302/?f1=m1&f2=1781
(The following article is a translation/summary of one of En Japan's columns and will be removed if it becomes a problem..)
Q. What is a retirement agency, how does a company respond when you are approached to retire, and can you refuse?
I read in the news that the use of "retirement agencies" is increasing, especially among young people. Can you tell us how companies respond when they are contacted by an agency, and how to deal with problems?
A. A retirement agency is a service that handles retirement procedures on behalf of the retiring employee.
Retirement is effective upon the unilateral expression of the employee's intention, so the company's approval is not required, even if it is expressed by an agency company.
Can I refuse to use a retirement agency?
In principle, you cannot refuse a retirement agency, but there are exceptions.
(1) If your intention to retire is not at your own request
As mentioned earlier, there are cases where a person is being harassed by a third party and is not requesting retirement. In this case, you may refuse to act on your behalf because you do not wish to retire. It is necessary to verify your identity with copies of your documents.
(2) In the case of fixed-term employees with a fixed term (organic employment)
Employees who are organically employed cannot, in principle, unilaterally quit within a certain period of time because their employment contract requires them to work until a certain period of time, and they may refuse to accept a retirement agency.
However, in unavoidable cases, such as being subjected to harassing behaviour, becoming unable to continue working due to illness, or needing to take care of a parent, retirement may be granted. Below is more information about early retirement. Please note that.
Legal validity of proxy retirement
Proxy retirement is when an agent acts on behalf of a worker's intention, and is governed by the provisions of the Civil Code. In the Civil Code, it is necessary to prove that the agent has the right to act, but in the case of retirement agency, the worker can prove the right to act by signing a contract with the retirement agency and issuing a power of attorney. Therefore, retirement agency is a legally valid method.
However, the retirement agency only represents the worker's intention and cannot obtain the employer's consent. Negotiations regarding retirement, such as when the employer does not accept the retirement notification or changes the retirement date, must be conducted directly between the worker and the employer.
Revisions to the law and the latest trends in retirement agencies
In recent years, retirement agencies have been spreading rapidly as a way to meet the needs of workers, but on the other hand, there have also been problems with unscrupulous companies and problems. For example, there have been reports of recruitment agencies forcing workers into unfavourable contracts, charging high fees, and taking violent attitudes towards employers.
In response to this situation, the government has decided to amend the law in 2024 to tighten regulations on retirement agencies. The main points of the amendments are as follows
Retirement agencies will be required to be licensed by the Ministry of Health, Labour and Welfare.
Retirement agencies will be required to meet certain standards, including clarification of contract contents and fees, introduction of cooling-off periods, and consideration for employers.
If an outplacement agency violates these standards, penalties apply.
In Japan, only qualified people such as lawyers and retirement agency unions can act as retirement agents. I think it's possible in Japan, where direct communication is difficult. I wonder if there will be such retirement agency services in Korea in the future. I hope it won't be abused.
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