China: The Human Resources and Social Security Bureau of Guangzhou Issued Model Texts of Documents Related to Flexible Retirement
On April 21, the Human Resources and Social Security Bureau of Guangzhou published the Model Text for Notice of Flexible Early Retirement for Enterprise Employees in Guangzhou (the “Notice”), the Model Text for Agreement on Flexible Delayed Retirement for Enterprise Employees in Guangzhou (the “Agreement on Flexible Delayed Retirement”), the Model Text for Agreement Termination Form for Flexible Delayed Retirement for Enterprise Employees in Guangzhou (the “Agreement on Terminating the Flexible Delayed Retirement”), and the Application Form for Basic Medical Insurance Retirement Time for Enterprise Employees in Guangzhou (the “Form”) for voluntary reference by employees and employers. This initiative aims to prevent and reduce labour disputes from the root, optimise the business environment, and support the smooth and orderly implementation of the flexible retirement policy.
The Notice elaborated the conditions that employees need to meet when choosing early retirement, including but not limited to years of service, age restrictions, and the minimum contribution period for pension. Additionally, the model text also specifies the process for applying for early retirement, the required documents, and the time limits for each step, ensuring transparency and efficiency throughout the process.
In the Agreement on Flexible Delayed Retirement, the focus is on the rights and obligations of both employees and employers regarding delayed retirement, including the specific duration of delayed retirement, salary and benefits, and welfare guarantees. This approach respects the individual choices of employees while also meeting the enterprise’s needs for talent stability.
The Agreement on Terminating the Flexible Delayed Retirement clearly stated that during the period of flexible delayed retirement, either party may propose an early termination one month in advance. If both parties reach a mutual agreement through consultation, the flexible delayed retirement can be terminated, and retirement procedures can be carried out according to the relevant regulations.
The Form includes new requirements for employees opting for flexible delayed retirement. Employees who choose flexible delayed retirement must obtain their employer’s consent on the form and simultaneously provide relevant materials demonstrating a mutual agreement with their employer.
Key Action Points
On 1 January 2025, the flexible retirement system has officially came into effect. On 10 January 2025, the Human Resources and Social Security Bureau of Beijing has issued two model texts provided for enterprises and employees to refer to and use voluntarily. The two model texts provided employers and employees with framework suggestions for arrangements, clearly addressing the issues that should be considered. Guangzhou’s newly introduced four model texts can be seen as a further refinement of the practice in Beijing, taking into account the needs of both employees and employers for early termination of flexible retirement. As the flexible retirement policy continues to be promoted, more regions will introduce model texts, and enterprises are recommended to refer to these model texts to reduce labour dispute.
