On September 13, 2024, the Standing Committee of the National People's Congress officially passed the "Decision on Implementing the Gradual Extension of the Statutory Retirement Age" and approved the "Measures of the State Council on Gradually Extending the Statutory Retirement Age" (hereinafter referred to as the "Measures").

The "Measures" will be officially implemented from January 1, 2025, and the hot topic of "delayed retirement," which has undergone extensive social discussion and anticipation, has finally "landed."

On October 25, CDP Group held a special lecture on "The Impact of Delayed Retirement on Human Resource Management in Enterprises." The lecture was broadcast live on the video account, with hundreds of HR professionals tuning in online. The lecture aimed to sort out and interpret the core content and key points of the new regulations, comprehensively assess the impact of the new regulations on labor management from the life cycle perspective of enterprise human resource management, and propose a series of countermeasures and management suggestions to provide practical management insights and advice for enterprises.

The lecture was delivered by Ms. Han Fangfang, who holds a Master's degree in Economic Law (specializing in Labor Law), a National Vocational Skill Certificate for Payroll Tax Professionals (Level 1), and a PTA-ATHE International Payroll Tax Professional (Senior Level). With her profound professional knowledge and rich practical experience, she provided the attendees with a rich and insightful policy interpretation.

I. Interpretation of the Delayed Retirement Policy

Ms. Han began with a detailed and easy-to-understand policy analysis and interpretation of the underlying logic of the delayed retirement policy.

1. Underlying Logic of the Delayed Retirement Policy

With the intensification of population aging and changes in the labor market, the delayed retirement policy emerged at the right time. Ms. Han interpreted the underlying logic of this policy as alleviating the pressure on pension payments, fully utilizing elderly human resources, and promoting sustainable economic and social development. By extending the retirement age, the government aims to balance the supply and demand of labor force, improve the utilization efficiency of labor resources, and provide strong support for the long-term stable development of the social economy.

2. Interpretation of the Delayed Retirement Policy

Specifically, the delayed retirement policy adjusts the retirement age to gradually postpone the actual retirement age of workers. Ms. Han believes that this policy not only affects the vital interests of workers but also poses new challenges to enterprises' employment management and human resource planning. Enterprises need to actively adapt to this policy change, optimize their employment structure, and improve their human resource management level.

II. Discussion on Popular Issues

After interpreting the policy, Ms. Han turned the topic to several issues of widespread concern in society and prepared corresponding case studies for each issue to help attendees understand the delayed retirement policy more comprehensively and deeply.

Question 1: What is the retirement age for female workers?

Ms. Han pointed out that the retirement age for female workers has always been a focus of attention. She believes that the retirement age should be determined based on the specific circumstances and actual needs of female workers. At the same time, she called on all sectors of society to pay attention to the protection of the rights and interests of female workers and provide them with more employment opportunities and better working conditions.

Question 2: The "15+5" Dismissal Protection Issue

When discussing the "15+5" dismissal protection issue, Ms. Han said that this policy aims to protect employees who have worked continuously in the same unit for 15 years and are less than five years away from the statutory retirement age. However, between January 2025 and December 2039, everyone's dismissal protection age will vary, making this issue increasingly complex. She suggested that enterprises can establish an internal employee retirement date quick reference system to better manage the dismissal protection issue for this group of employees.

Regarding the management of the "15+5" dismissal protection issue, Ms. Han proposed the following suggestions:

a. Establish a job appointment system with salaries varying by position: By clarifying job responsibilities and requirements, match employees with positions and adjust salaries based on job changes, thereby motivating employees' enthusiasm and creativity.

b. Strengthen salary system design and increase the proportion of job-based and performance-based salaries: By optimizing the salary structure and increasing the proportion of job-based and performance-based salaries, employees' income will be more closely linked to their job contributions and performance, thereby enhancing their sense of belonging and loyalty.

c. Clearly specify "non-management positions" for female non-management employees in labor contracts to avoid disputes: Since there may be special regulations regarding the retirement age and dismissal protection of female non-management employees, it is recommended to clearly specify their job nature in labor contracts to avoid disputes caused by job changes.

d. Formulate internal "retirement" policies within the enterprise: Enterprises can formulate internal "retirement" policies based on their actual situation, such as early retirement and internal retirement, to better meet employees' retirement needs and the enterprise's development needs.

Question 3: How to understand the "flexible three years" issue?

The "flexible three years" policy is implemented under specific time frames and minimum statutory contribution years. Specifically, from January 1, 2025, to December 31, 2029, employees need to reach the minimum statutory contribution years of 15 years. After 2030, this regulation may be adjusted according to new policies.

Ms. Han pointed out that the actual situation can be divided into two scenarios: forward flexibility (voluntary early retirement) and backward flexibility (delayed retirement).

Conditions for forward flexibility are:

Voluntariness: Employees have the right to voluntarily choose early retirement, and this right is not interfered with by the employer.

Time range: Employees can retire three years or within three years in advance. This means that employees can flexibly choose their retirement time based on their actual situation and needs.

No notice requirement: Enterprises may face sudden retirement applications from employees, as the policy does not require employees to notify the enterprise 30 days in advance.

Restrictions: Although employees can voluntarily retire early, they cannot do so earlier than the original statutory retirement age. For example, if the original retirement age is 50, then after the statutory retirement age is gradually delayed to 53, employees can retire after 50 but no later than 52.

Backward flexibility is:

For backward flexibility (i.e., delayed retirement), the policy stipulates that both parties (employees and employers) need to reach a consensus through negotiation. This means that employees and employers can jointly decide whether the employee delays retirement and the specific time of the delay based on actual situations and needs.

The "flexible three years" policy provides employees with more retirement options, allowing them to voluntarily retire early under certain conditions or choose delayed retirement through negotiation with the employer. However, this policy also poses new challenges to enterprise human resource management, such as how to deal with sudden retirement applications from employees and how to balance employees' retirement needs with the enterprise's employment needs. Therefore, Ms. Han suggested that enterprises need to closely monitor policy changes and formulate reasonable retirement management systems and plans to address potential challenges.

III. Management Responses and Strategy Optimization

After deeply understanding the underlying logic of the delayed retirement policy and discussing popular issues, Ms. Han further guided everyone to think about how to effectively respond to this policy change in practice, especially its impact on enterprise human resource management. She proposed a series of specific management responses and strategy optimization suggestions.

01 Management Risk Responses to Current Retire-and-Rehire Practices

Ms. Han first emphasized the importance of retire-and-rehire practices under the delayed retirement policy and the accompanying management risks. She suggested that enterprises establish standardized retire-and-rehire management systems, including but not limited to:

Clarifying contract nature: Ensure that the contracts signed with retire-and-rehire personnel clearly state their labor service nature to avoid confusion with employment contracts, thereby avoiding legal risks.

Flexible job settings: Based on the professional skills and experience of retirees, flexibly set jobs to leverage their advantages while reducing risks due to insufficient physical strength or energy.

Strengthening health management: Regularly conduct health checks for retire-and-rehire personnel, provide necessary health insurance and workplace adaptability adjustments, and ensure their work safety and health.

02 Optimization of Salary Structure

Regarding adjustments to the salary system under the delayed retirement policy, Ms. Han proposed the following suggestions:

Performance linkage: Increase the proportion of performance-based salaries in the salary structure to encourage retirees to continue contributing, while rewarding individuals based on their contributions to enhance incentive effects.

Flexible benefits: Provide diverse benefit options, such as upgraded health insurance and flexible working hours, to meet the personalized needs of retirees and enhance their job satisfaction.

Career planning guidance: Provide career planning guidance for employees nearing retirement but wishing to continue working to help them smoothly transition to new work modes or positions while retaining valuable talent for the enterprise.

03 Optimization of Employment Structure

Facing the changes in the labor market brought about by delayed retirement, Ms. Han emphasized the importance of optimizing the employment structure:

Diversified employment: Adopt various employment forms such as project-based, part-time, and internship employment, and flexibly adjust human resource allocation based on the enterprise's actual needs.

Talent development and succession: Strengthen internal talent development plans to ensure that young employees receive sufficient development opportunities under the delayed retirement policy, forming an orderly talent succession mechanism.

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