Bank of Tokyo-Mitsubishi UFJ will allow most of its contract employees to work until 60, the retirement age set for its regular workers, in an effort to secure skilled personnel amid a shrinking workforce in Japan, a source familiar with the matter said on Friday.
Starting next April, the core banking unit of Mitsubishi UFJ Financial Group Inc. will offer the new scheme to those working for at least three years on a fixed-term contract basis, who roughly account for 90 percent of its 11,000 contract workers, the source said. The bank's overall workforce totals 45,000.
The bank will introduce the program ahead of a new requirement, to be implemented under the revised Labor Contract Act, for companies to allow contract employees with the minimum five years of service to work on a non-fixed term basis starting from April 2018.