[Q&A] Legal Considerations When Hiring Elderly Workers
2025. 1. 17
Question: What are the risks to be aware of when hiring elderly workers?
Answer: According to Article 32, Paragraph 1 of the "Interpretation of the Supreme People's Court on the Application of Laws in the Trial of Labor Dispute Cases (I)": "In case of a labor dispute arising between an employer and a person who is already legally enjoying pension insurance benefits or receiving a retirement pension, the people's court shall handle it as a employment relationship."
There are certain regional differences in handling this issue in practice. However, some judicial opinions hold that even if the worker has reached the retirement age but has not yet started to enjoy retirement pension insurance benefits, it is still possible to be recognized as constituting a substantial labor relationship.
In practice, some companies hire workers who have reached retirement age through labor outsourcing. In these cases, although a subcontracting agreement is formally signed, if there is a direct management relationship between the company and the outsourced personnel (such as attendance management, salary payments, strict work discipline constraints, etc.), it may still be recognized as a substantial labor relationship. If an employee is injured at work, the company may be required to bear the corresponding work injury liability.
It is especially important to note that elderly workers may have certain underlying health conditions, and some positions may have occupational hazard factors, increasing the likelihood of accidents. When hiring elderly workers, companies should be particularly aware of these risks, standardize their employment practices, and, if necessary, mitigate company risks by purchasing insurance.