Prolonged Work Past Retirement: Strategies for Managing Ongoing Employment
In recent times, the federal government has expressed a desire to make it easier for employees to continue working beyond the standard retirement age. This article aims to provide a clear and concise guide on the rules and regulations surrounding continued employment after retirement.
Firstly, it is essential to understand that when former employees are rehired from retirement, the rules of the Part-Time and Fixed-Term Employment Act apply. This means that the employment relationship is considered a new hire, and the works council must be involved if there is one.
The employment relationship continues if there are no clauses in the employment and collective bargaining agreements that terminate upon reaching retirement age. However, most agreements terminate unlimited employment contracts upon reaching the regular retirement age. In such cases, a new fixed-term employment contract can be concluded with a former employee who is in retirement only if both parties agree and if the contract is limited in time without requiring a specific reason, according to § 41 Satz 3 SGB VI.
It is crucial to note that an agreement for continued employment should be made in writing, with an email being sufficient. Görzel advises planning early and ahead for postponing retirement to avoid complications. Postponing retirement sparingly is also recommended to avoid the risk of it being considered an abuse of rights. Caution is still advised when postponing retirement due to the risk of multiple extensions being considered an abuse of rights.
Receiving a pension alone does not justify a fixed-term contract. A valid fixed-term contract can only be agreed upon under strict conditions. Multiple fixed-term contracts can be considered age discrimination. Therefore, it is important to ensure that the terms of the contract are fair and reasonable.
If there is a works council, they must be involved in the agreement for continued employment because it is legally considered a new hire. The termination date of the employment relationship can be mutually agreed upon, and can be changed multiple times. However, it is important to note that caution should be exercised when making multiple changes to avoid the risk of it being considered an abuse of rights.
In conclusion, extending work beyond retirement age is possible under certain conditions. It is essential to plan ahead, understand the rules and regulations, and ensure that the agreement is fair and reasonable for both parties. As always, seeking legal advice can help navigate the complexities of employment law.
