For retirees who return to work after retirement, the employer should enroll them in the occupational accident insurance of labor insurance and allocate pension contribution to safeguard their interests

With the development of the aging of the population, more and more retirees, with their professional expertise and experience, choose to return to work and start a second career after retirement. According to the regulations, if retirees choose to return to work, they may enroll in the occupational accident insurance of labor insurance through their employers. The employers, in the meantime, are obliged to allocate labor pension for the employees. The purpose is to build up a friendly workplace through the collaborative efforts of the employers and employees, in the meantime ensure the safety of the elderly workers.

The Bureau of Labor Insurance (BLI) explains that the workers who had already received the old-age benefits of labor insurance or the workers of 65 and above who had already received the elderly benefits from other social insurance programs were, according to the regulations, no longer entitled to enroll in labor insurance or employment insurance when they were reemployed. Considering the risks of occupational accident faced by the reemployed elderly workers and to strengthen the job safety of the middle-age workers, the government has relaxed the regulations. The reemployed workers who have already received the old-age benefits of labor insurance are now allowed to apply for, singly, the occupational accident insurance of labor insurance through their employers. The premium of the insurance shall be entirely borne by the employers. The workers may claim occupational accident benefits from the BLI for any occupational accidents occurred during the period of insurance. The benefits may also count as a deductible from the compensation payable by the employers, thereby ensuring the protection of workers’ rights and sharing the employers’ operating risks.

Besides, with the implementation of the Labor Occupational Accident Insurance and Protection Act on May 1, 2022, the coverage will be further expanded the scope of protection and cancel the restrictions on the number and maximum age of the employees. Workers shall be entitled to mandatory enrollment in the occupational accident insurance of labor insurance as long as they are employed by lawfully registered employers, regardless whether they are above 65 or have received the old-age benefit of labor insurance or not. The insurance coverage, according to the Act, shall become effective on the first day of employment. The workers are entitled to claim benefit against the occupational accident even if the employers fail to file the enrollment applications. The purpose is to further strengthen the protection against occupational accident. The employers, however, shall be subject to penalty and compensation responsibilities for not having fulfilled the enrollment requirements.

Business owners are further reminded that, once workers are reemployed by a business entities applicable to the Labor Standards Act, the employers should allocate labor pension fund for the employees as required by the Act, which should not be less than 6% of the workers’ monthly insurance salary and should be deposited into the individual labor pension accounts established by the BLI, regardless whether the workers have already claimed for the labor Insurance old-age benefits or labor pension.