Photo/Illutration The labor ministry’s Labor Policy Council starts discussing how to secure employment opportunities for individuals up to age 70 in September 2019. (Asahi Shimbun file photo)

Only 32.6 percent of small and midsize businesses have taken measures to offer working opportunities for employees until they reach age 70, a survey showed.

A revision of the elderly people’s employment stabilization law took effect in April, obliging employers to make efforts to allow employees to continue working until 70.

However, such measures are not mandatory.

The results of the survey by the Japan Chamber of Commerce and Industry (JCCI) revealed that companies are reluctant to introduce measures that could increase personnel costs when earnings are falling amid the novel coronavirus pandemic.

“Given that work regulations and occupational environments need to improve, employers apparently failed to take action in a timely manner in part because of the coronavirus crisis,” said a representative of the JCCI’s No. 2 industrial policy division.

The survey showed small and midsize companies are having a tough time responding to the legal amendment.

The JCCI conducted the survey between April 14 and 20 on its 2,752 member companies nationwide. Responses were received from 76.2 percent of them.

According to the results released on April 30, 32.6 percent of the small and medium-sized businesses said they “have taken necessary measures,” while 31.9 percent said they “have not started anything concrete.”

Companies “gearing up for or considering concrete measures” made up 10.6 percent.

The companies that have taken necessary measures or are planning concrete efforts were also asked about what steps they are taking. They were allowed to choose more than one answer.

Most of the well-prepared employers, or 65.8 percent, had set up continue-to-work programs for those up to age 70, followed by 20.2 percent that said they have scrapped mandatory age-based retirement.

Companies that “have no plans to take any measures” accounted for 24.9 percent, insisting they “have no employees subject to the change” or that they are “obliged to simply make efforts although we have workers covered” by the revision.

One responding company said it faces “difficulty over how to implement the principle of equal pay for equal work in preparation for the re-employment of specialist personnel.”

On April 30, the JCCI released the results of another survey on employers’ responses to the standard of “same pay for same work.”

The nationwide survey was conducted in February before the rule started applying to small and midsize companies in April.

Of about 3,000 smaller companies that gave valid responses, 445 said they have “temporary workers likely covered by the principle.”

Of them, 56.2 percent “expect to shortly introduce countermeasures,” 9.5 points higher than in the previous survey conducted between February and March last year.

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