2. If an employee chooses to participate in the new labor pension system, how should the seniority accrued under the in old Labor Pension system before the election be handled?
- If an employee chooses to participate in the new labor pension system, his/her seniority accrued under the old Labor Pension system before the election should be retained. If the labor contract is terminated under circumstances qualifying for retirement or severance, the employer shall pay the severance pay or retirement pension based on the seniority retained under the old Labor Pension system, calculated on the basis of the employee’s average wage at the time the labor contract is terminated.
- The employer and the labor could also negotiate to settle the retained seniority accrued under the old Labor Pension system with a criterion no less than the payment standard in Article 55 and Article 84-2 of Labor Standards Act during the term of the labor contract.
- If the parties wish to settle retirement benefits under the Labor Standards Act, the settlement must be made by the mutual agreement between the employer and the employee; Neither party may be compelled to enter into such a settlement, and the employer is under no obligation to agree to it.
- An employee may, by agreement with the employer, settle the retirement benefits for the years of service accrued under the Labor Standards Act, and transfer the settlement amount into the employee’s individual labor pension account with the Bureau of Labor Insurance. The transferred amount may not be withdrawn before the employee reaches the age of 60, except that an employee loses the capability to work, may apply for early payment.