⚖️ Do employees continue to work after retirement, to count their age, or to count continuously?

The Supreme Court pointed out that continuing to work after retirement without paying compensation is an extension of retirement. It takes a continuous count from the first day of employment, not a new one.

This is very important for entrepreneurs and HR, because misunderstanding the age count can cause compensation to escalate multiple times unknowingly. Let's see what happens in this case and what to watch out for.

📌. The origin of the case.

eccentric.

▪️ Employee started 2010 job as Financial Supervisor

▪️ 2017, 55 years old, mandatory retirement due

▪️ employers to continue their work without paying compensation.

▪️ 2020, employers have a termination book, so there is a problem of how to count the age of employment.

⚖️ How does the Supreme Court rule?

eccentric.

1️⃣ The original contract did not end because the work was resumed and no compensation was paid. It was not terminated under article 118, second paragraph.

2️⃣ There is no evidence that it intends to recontract, but rather that it agrees to continue work in accordance with the extension rights in the staff manual.

3️⃣ therefore constitutes a "retirement extension," requiring the age of employment from 2010 until the actual termination date of 2020.

4️⃣ As a result, the age of employment exceeds 6 years but does not complete 10 years. The employer must pay compensation of not less than the last rate of 240 days.

💡 HR to do?

eccentric.

▪️ check the regulations, if it is written "extended retirement," you must know that the age of work will count continuously, the compensation will be higher according to the total age of work, and the final base of salary is often higher than at the age of 55.

▪️ If you want to retire and start counting again, you must pay compensation as of the retirement date and enter into a separate contract.

▪️ agreeing to continue work should have a clearly written record as "extended" or "rehired" and bring it into line with actual practice.

▪️ Be careful of the notice fee. If the contract with the extension is indefinite, the end is certain. When it is issued later, the notice must be given in accordance with the law.

👉 This material is general information, not case-specific legal counsel.

Ref. Supreme Court Judgment No. 3114 / 2567 and Labour Protection Act 1998, Sections 118 and 118 / 1

This kind of case reinforces that accurate work age and wage base information is the key evidence of compensation calculations, so accurate time and salary records help you know the real burden from day one.

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