Labor Policy Keiichiro HAMAGUCHI

Chapter 2 Labor Market Policy

Section 4 Employment Policy for the Aged and the Disabled

(1) Employment policy for the middle-aged and elderly workers

(a) Quota system for middle- aged and elderly workers 1966 Employment Measures Law put the job-based quota system for the middle- aged and elderly in public sector Special Law for Employment Promotion of Middle-aged and Elderly Persons extended the job-based quota system to private sector revised SLEPMEP Law focused on the elderly only (6% for each company).

(b) Raising of mandatory retirement ages 1973 revised Employment Measures Law declared raising of mandatory retirement age Older Persons Employment Security Law made endeavor clause for mandatory retirement age at or over revised OPES Law made it obligation.

(c) Continued employment until revised OPES Law made endeavor clause for re-employment until revised OPES Law made endeavor clause for continued employment until 65 with Continued Employment Benefit for Older Workers (benefit rate: 25%, down to 15% in 2003) revised OPES Law made mandatory retirement at 65 optional revised OPES Law made continued employment until 65 obligation (progressive implementation).

(d) Prohibition of age discrimination 1980 ILO Recommendation No.162 on Older Workers required equal opportunity and treatment for age. Economic Planning Agency advocated ban on age discrimination in revised Employment Measures Law made endeavor clause for equal opportunity age revised OPES Law made explanation on age limit obligation revised EML made obligation clause with some exceptions.

(d) Silver Human Resources Center Silver human resources center contracts with companies and private citizens on temporary works. Government subsidized to non- governmental movement OPES Law recognized it revised OPES Law allowed member dispatching.

(2) Employment policy for the Disabled

(a) The physically disabled 1960 Physically Disabled Employment Promotion Law introduced quota system in endeavor clause ( %) revised PDEP Law made it obligation (1.5%) with levy and grant system. Levies collected from non-achievers are redistributed to achievers.

(b) The intellectually disabled (the mentally retarded) The mentally retarded were excluded from obligatory quota Disabled Employment Promotion Law included them in quota ( %) and in levy and grant. Renamed to the intellectually disabled in 1998 Actual employment rate of them is low.

(c) The mentally disabled 2002 revised DEP Law declared the mentally disabled as disabled revised DEP Law included them in levy and grant but not in obligatory quota.

(d) Vocational Rehabilitation for the disabled 1983 ILO Convention No.159 on Vocational Rehabilitation and Employment (Disabled Persons) required social integration of the disabled revised DEP Law introduced this purpose.