Mandatory retirement and unemployment benefit eligibility
9/28/2026
When an employee leaves the company upon reaching the mandatory retirement age specified in the company regulations, such separation is legally recognized as a “justifiable reason for separation” and considered involuntary, irrespective of the employee's own intention. As such, the employee may be eligible for unemployment benefits, provided the other eligibility requirements are met.
Basic Eligibility Requirements -
1) the insured period under employment insurance (days actually worked and paid) must total at least 180 days within the 18 months prior to the date of separation.
2) the person must have both the intention and ability to work. In other words, they must genuinely wish to continue working but have not yet found new employment; those who are unable to work due to health reasons, for example, are not recognized as eligible.
3) the person must actively engage in job-seeking activities aimed at reemployment (such as registering as a job seeker on Worknet or attending employment support lectures at the employment center, and submitting proof of these activities).
4) the reason for separation must not fall under the statutory grounds for disqualification (such as voluntary resignation for personal reasons, or dismissal due to serious misconduct). Mandatory retirement generally does not fall under these disqualifying grounds.
Benefit Duration and Amount -
For those retiring at the mandatory retirement age who are 50 or older, the prescribed benefit period can be recognized for up to 270 days (approximately 9 months), with the daily benefit amount set at 60% of the average wage prior to separation.
Application Deadline and Procedure -
All benefits must be received within 12 months from the day following the date of separation.
The procedure is as follows: (1) request the company to issue a certificate of employment / separation confirmation (confirming that the reason for separation is stated as "mandatory retirement"), (2) register as a job seeker on Worknet, (3) complete the online eligibility training on the Employment Insurance website, and (4) visit (or apply online through) the Employment Welfare Plus Center with jurisdiction over the employee’s place of residence.
As part of the unemployment benefit process, the company is required to submit an employment separation confirmation and an employment insurance deregistration report. On both documents, the reason for separation must be accurately reported as "mandatory retirement." In addition, the company regulations - specifically the provision setting out the mandatory retirement age - must be submitted to confirm that the separation resulted from mandatory retirement prescribed under the company regulations.
As an example, a provision on file might read as follows:
Basic Eligibility Requirements -
1) the insured period under employment insurance (days actually worked and paid) must total at least 180 days within the 18 months prior to the date of separation.
2) the person must have both the intention and ability to work. In other words, they must genuinely wish to continue working but have not yet found new employment; those who are unable to work due to health reasons, for example, are not recognized as eligible.
3) the person must actively engage in job-seeking activities aimed at reemployment (such as registering as a job seeker on Worknet or attending employment support lectures at the employment center, and submitting proof of these activities).
4) the reason for separation must not fall under the statutory grounds for disqualification (such as voluntary resignation for personal reasons, or dismissal due to serious misconduct). Mandatory retirement generally does not fall under these disqualifying grounds.
Benefit Duration and Amount -
For those retiring at the mandatory retirement age who are 50 or older, the prescribed benefit period can be recognized for up to 270 days (approximately 9 months), with the daily benefit amount set at 60% of the average wage prior to separation.
Application Deadline and Procedure -
All benefits must be received within 12 months from the day following the date of separation.
The procedure is as follows: (1) request the company to issue a certificate of employment / separation confirmation (confirming that the reason for separation is stated as "mandatory retirement"), (2) register as a job seeker on Worknet, (3) complete the online eligibility training on the Employment Insurance website, and (4) visit (or apply online through) the Employment Welfare Plus Center with jurisdiction over the employee’s place of residence.
As part of the unemployment benefit process, the company is required to submit an employment separation confirmation and an employment insurance deregistration report. On both documents, the reason for separation must be accurately reported as "mandatory retirement." In addition, the company regulations - specifically the provision setting out the mandatory retirement age - must be submitted to confirm that the separation resulted from mandatory retirement prescribed under the company regulations.
As an example, a provision on file might read as follows:
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Article [ ]. Retirement Age Employees shall retire upon reaching the age of 60, with the retirement date falling on the last day of the month in which the employee turns 60, unless otherwise agreed between the employee and the company. |