Question 191. Is an Employer obliged to reduce the normal working hours for an Older Employee? In this case, how will the salary be paid to the said Employee?

According to Article 148 of the Labour Code, the Older Employee has the right to reach an agreement with the Employer to reduce the normal working hours (still paid full salary) or applying a part-time work regime (only paid for actual working time) and depending on the health situation of the Older Employee. Thus, it can be understood that this is a right of the Older Employee (but not a default right) and also not a default obligation of the Employer. If the Older Employee requests the right aforesaid, the Employer must reach agreement and vice versa, if the Employee does not request to reach an agreement to reduce the normal working hours, the Employer shall continually apply the normal working hours for the Older Employee. That regulation for creating opportunity for the Older Employee to continually work for the Employer.

However, there is no legal guidance on dealing with the consequences when the Employers and the Older Employee failed to reach agreement due to the parties cannot determine the reasonable working hours for reduction and this reduction will be considered to the reduction of working hours and paid full salary or applying a part-time work regime that only paid for actual working time. In such case, it can be deduced that the Older Employee is obligated to continually work as usual as prescribed by the LC, ILR, and CLA (if any) of the enterprise or requires the organisation representing Employees at the grassroots level (if any) to support the Older Employee in the negotiation with the Employer or could give a complaint to the competent labour management agency.