SINGAPORE employers will be required to offer older worker re-employment contracts of up to a year once they hit the minimum statutory or contractual retirement age from 2012.
This is provided in the proposed re-employment legislation, which is open for public feedback till Sept 29.
The Ministry of Manpower (MOM) on Thursday released a consultation paper on the conditions and obligations for re-hiring older employees so that they can work longer.
In view of the nation's ageing population and workforce, the legislation will enable companies to tap on the skills and experience of older employees.
The re-employment legislation aims to 'strike a balance between providing older employees with the opportunity to work longer' as well as keep companies 'competitive by providing flexibility in the implementation of re-employment', said MOM in a statement.
Under the proposals, employees who satisfy the re-employment criteria of being medically fit to continue working and having satisfactory or better work performances must be offered re-employment contracts by the same employer when they reach retirement age.
Re-employment contracts must be for at least a year.
Flexibility in re-employment is another key area provided in the proposed legislation. This will help companies remain competitive. Employers and employees have the flexibility to renegotiate job scope, wages and benefits.
The proposal also makes it compulsory for employers to pay retiring workers an Employment Assistant Payment (EAP) if they are unable to let them continue working in the company.
MOM's proposed legislation was released as a follow up to the Tripartite Guidelines on Re-employment of Older Employees in March.
The key features of the proposed re-employment legislation can be viewed on the REACH website.
- The Straits Times
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