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In this Asian Economics article, Ji Su Choi, an attorney at LIN's HR team, discusses the recent Supreme Court ruling on the right to rehire retirees, analyzes its implications and impact, and suggests ways for employers to respond in the future.
(Ji Su Choi, Attorney, LIN HR Team)
The Supreme Court recently went beyond the existing principle that "maintaing a working relationship with a mandatorily retired worker is the employer's prerogative unless there are special circumstances," and explicitly set forth the legal doctrine of the “right to expect rehiring after retirement age,” which seems to be a noteworthy ruling for employers and managers who are concerned about unnecessary rehiring.
Ms. Choi believes that the ruling is significant in that it clarifies that even if there is no provision for rehiring after retirement age in a labor contract, employment rules, or collective agreement, if a “practice of rehiring after retirement age” is established, a relationship of trust for rehiring after retirement age can a be established and the right of expectation can be recognized, but also provides specific criteria for determining whether“practice of rehiring after retirement age” is established.