Recently, Toyota Motor Corporation's announcement of expanding re-employment from the age of 60 to 70 sparked a lot of attention in Japanese society. Toyota already had a re-employment system in place up to the age of 65, but re-employment for those over 65 was limited to a select few employees. By expanding this system, they have introduced a scheme that allows employees of all job categories to work until the age of 70.

Nitori Holdings also attracted attention by expanding its re-employment age limit from 65 to 70, effective July. However, it is somewhat surprising that this news is making headlines. This is because the "Act on Stabilization of Employment of Older Persons (Elderly Act)" already mandates "re-employment of all those who wish to work" up to the age of 65, and the revised Elderly Act, which came into effect in April 2021, made securing employment opportunities until the age of 70 a "duty of endeavor" for companies. With many major companies establishing re-employment systems up to the age of 70, Toyota's move seems rather belated.

Moreover, in the case of re-employment, which is not an extension of the retirement age, it is common for employees to transition from regular employment to re-employment, effectively becoming non-regular employees. There are instances where salaries are significantly reduced at this stage.

Let's take a closer look at the polarized response from Japanese companies regarding senior employment.

**"Selection by the company" after the age of 65**

While the Elderly Act mandates "duty of endeavor" for securing employment opportunities until the age of 70, unlike the "mandatory re-employment of all those who wish to work" up to the age of 65, companies can apply certain criteria to decide on re-employment after the age of 65. Toyota has stated that its re-employment scheme will apply to "employees who possess a high level of knowledge and skills and whose continued presence in the workplace is desired." This implies that if an employee does not meet these two criteria, namely 1) possessing advanced knowledge and skills, and 2) being necessary to the company, they will not be re-employed.

On the other hand, among large companies, it is not uncommon for companies to re-employ all those who wish to work, as long as they are healthy, in the same way as those under 65. From this perspective, Toyota's re-employment system up to the age of 70 could merely be an attempt to comply with the minimum legal standards.

**Is it justifiable to treat re-employed individuals as "finished?"**

Awareness regarding senior employment remains low in Japanese society. In particular, there are cases where employees who are re-employed after retirement are treated as "finished," which can lead to failing to recognize the potential and value of senior workforce.

Senior workforce can significantly contribute to an organization based on their wealth of experience and expertise, and they can serve as valuable mentors for younger generations. Companies should remember that senior employment allows them to secure talent from various age groups and enhance organizational vitality.

Japan will face further aging in the future, making senior employment an increasingly critical issue. Companies must recognize the value of senior workforce and strive to make full use of their abilities.