Employers Must Offer Reemployment to Older Workers

Beginning in 2012, Singapore employers will be required by law to offer reemployment to workers who have reached the current statutory retirement age of 62. Rather than raise the retirement age, the government has formulated this legislation as a more flexible way to extend employment to older workers, initially to age 65 and later to age 67. “The Tripartite Guidelines on Reemployment of Older Employees” has been produced by a working committee of government, employer and union representatives and takes into account feedback from the public received in the latter part of 2009.

Some of the key principles in the guidelines are:
•    Employers should aim to reemploy the majority of their older workers. As good practice, employers should offer reemployment to all employees who are medically fit and whose performance is assessed to be satisfactory or better.
•    Employers should begin discussions with employees at least six months before potential reemployment.
•    It is not necessary to offer the same job or the same pay; both employer and employee should be flexible.
•    Reemployment should be up to age 65, and contracts may be on an annually renewable basis, provided the employee continues to be medically fit and continues to perform satisfactorily.
•    Employment benefits such as annual leave and sick leave should be continued at a level appropriate for the job on reemployment.
•    If reemployment is not available, employers should offer employees a one-time Employment Assistance Payment (EAP) to tide them over while they look for alternative employment. The guidelines suggest a minimum of $4,500 and a cap of $10,000.

http://www.re-employment.sg