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Re-employment of Older Employees in Singapore (DLLC Webinar Topic)

By December 6th, 2023No Comments
  1. Background & Changes in the Re-Employment Legislation 2012 to 2022
  1. Who is Eligible for Re-Employment
  2. How to Assess “Satisfactory Work Performance” & “Medically Fit to Continue                                                                                                                                                                                                               Tripartite Guidelines on Re-Employment of Older Employees (W.E.F 12 Oct 2020)                     What if Employer is Unable to Offer Re-Employment

Do you know?

80 re-employment disputes a year between 2016 and 2021

The Manpower Ministry handled about 80 cases of disputes each year between 2016 and 2021 that involved staff seeking re-employment beyond their retirement age and their employers. Some of the disputes included:

  • Unreasonable denial of re-employment
  • Disagreement over terms of re-employment
  • Disagreement over amount of employment assistance paid

90 per cent of the disputes were amicably resolved through a mediation process, and they included instances where the employee subsequently withdrew the appeal.

The remaining 10 per cent were either escalated to the Minister for Manpower for a decision on unreasonable denial of re-employment, or to the Employment Claims Tribunals (ECT) for disputes over re-employment terms or quantum of employment assistance payment,” by MP Dr Koh

Published by The Straits times PUBLISHED ON OCT 4, 2022, 5:14 PM SGT

 

Do you know?

S’pore’s population ageing rapidly:
Nearly 1 in 5 citizens is
65 years and older

Singapore’s population is ageing rapidly, with the proportion of citizens aged 65 and above increasing to 18.4 per cent in 2022. This is a spike from 11.1 per cent in 2012. It was 17.6 per cent in 2021. By 2030, around one in four citizens, or 23.8 per cent, will be aged 65 and above

Employers, community partners and individuals can all do their part to create a stronger family-friendly support ecosystem.

This can range from workplaces that promote work-life harmony to community groups. Singapore must also be a home where seniors can age meaningfully with confidence and peace of mind.

The Straits times PUBLISHED ON SEP 27, 2022, 4:00 PM SGT

 

WHO IS ELIGIBLE FOR RE-EMPLOYMENT

  • SINGAPORE CITIZEN OR SINGAPORE PERMANENT RESIDENT
  • SERVED AT LEAST 2 YEARS BEFORE TURNING 63 (Employees hired at age 55 and above)
  • SATISFACTORY WORK PERFORMANCE – ASSESSED BY EMPLOYER
  • MEDICALLY FIT TO CONTINUE WORKING

HOW TO ASSESS “SATISFACTORY WORK PERFORMANCE”  & “MEDICALLY FIT TO CONTINUE WORKING”

  • THERE IS NO SPECIFIC DEFINITION  OF WHAT DOES “SATISFACTORY WORK PERFORMANCE” MEANS BUT THERE ARE SOME GUIDELINES

SOME SUGGESTION AND GUIDANCE FROM MOM

  • MINIMUM LEVEL OF PERFORMANCE ANY EMPLOYEE IS EXPECTED TO CARRY OUTMAINTAIN THAT LEVEL OF PERFORMANCE IN DISCHARGING DUTIESEMPLOYERS SHOULD TAKE INTO ACCOUNT PAST 2 TO 3 YEARS PERFORMANCE

HOW TO ASSESS “SATISFACTORY WORK PERFORMANCE”  & “MEDICALLY FIT TO CONTINUE WORKING”

  • “MEDICALLY FIT TO CONTINUE WORKING”
  • IDENTIFY ELIGIBLE EMPLOYEES (S.C OR PR)
  • START DISCUSSIONS 6 MONTHS BEFORE EMPLOYEE TURNS 63
  • TRY TO OFFER RE-EMPLOYMENT CONTRACT AT LEAST 3 MONTHS BEFORE RETIREMENT
  • EMPLOYERS EXPECTED TO FOLLOW TRIPARTITE GUIDELINES
  • EMPLOYEES* EXPECTED TO BE OPEN MINDED ABOUT CHANGE IN JOB SCOPE AND PAY SCALE, PREPARE FOR RETIREMENT OR OTHER EMPLOYMENT

 

TRIPARTITE GUIDELINES

  • KEY CONCEPTS FOR REMPLOYMENT

1.    TO DEAL WITH AGING WORKFORCE

2.   INCREASE PRODUCTIVITY

3.  INCLUSIVE WORKFORCE

4.  PROGRESSIVE WORKPLACES THAT VALUE OLDER WORKERS

  • STATUTORY MINIMUM RETIREMENT AGE   –   63 (FUTURE 65 BY 2030)
  • STATUTORY MAXIMUM RETIREMENT AGE –    68 (FUTURE 70 BY 2030)
  • GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT
  1. PLANNING AND PREPARING EMPLOYEES FOR RE-EMPLOYMENT

2. THE EMPLOYMENT CONTRACT

3. RECOGNISING THE CONTRIBUTIONS OF RE-EMPLOYED EMPLOYEES

4. ASSISTING THOSE EMPLOYEES WHO CANNOT BE RE-   EMPLOYED

 

GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT

PLANNING AND PREPARING EMPLOYEES FOR RE-EMPLOYMENT

CAREER PLANNING AND TRAINING WITH FORWARD THINKING MINDSET

PERFORMANCE APPRAISAL REVIEW – DISCUSSIONS TO START AS EARLY AS 45 YEARS OLD FUTURE CAREER PLANS

POTENTIAL TRAINING AND SUPPORT FOR SENIOR EMPLOYEES (55 YEARS OLD AND ABOVE) SKILSS NEEDED FOR RE-EMPLOYMENT

FLEXIBILITY IN THE JOB ARRANGEMENTS

GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT

PLANNING AND PREPARING EMPLOYEES FOR RE-EMPLOYMENT

FLEXIBILITY IN THE JOB ARRANGEMENTS – RE-EMPLOY EMPLOYEES

IN THE SAME JOB WITH ADJUSTMENTS IN WAGES AND BENEFITS, WHERE NECESSARY

WITH MODIFICATIONS TO EXISTING JOBS, GIVE DIFFERENT JOBS ON NEW TERMS

OTHER WORK ARRANGEMENTS MUTUALLY AGREED WITH EMPLOYEE

GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT

(GIVE EMPLOYEES AMPLE TIME AND ADEQUATE TRAINING)

PLANNING AND PREPARING EMPLOYEES FOR RE-EMPLOYMENT

FLEXIBILITY IN THE JOB ARRANGEMENTS – RE-EMPLOY EMPLOYEES

AT LEAST 3 MONTHS BEFORE RETIREMENT

EMPLOYEES WHO CONTINUE TO EMPLOYED BEYOND 63 YEARS WITHOUT FORMAL RE- CONTRACT

DEEMED TO BE EMPLOYED ON SAME TERMS AS BEFORE

GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT (GIVE EMPLOYEES AMPLE TIME AND ADEQUATE TRAINING)

THE RE-EMPLOYMENT CONTRACT

DURATION OF RE-EMPLOYMENT

  1. GUIDELINES PROPOSE 5-YEAR  REMPLOYMENT CONTRACTS
  2.  OR TERM CONTRACT OF 1-YEAR, RENEWABLE  UP TO 68 YEARS AS SOON AS CONDITIONS MET (SATISFACTORY ASSESSMENT & MEDICALLY FIT)
  3. GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT (GIVE EMPLOYEES AMPLE TIME AND ADEQUATE TRAINING)
  4. WAGES, MEDICAL AND BENEFITS                                                                                                                     EMPLOYER TO FOCUS ON IMPACT OF WAGES, MEDICAL AND BENEFITEMPLOYEE INCOME (ESP LOW WAGE WORKERS)                                                                                                           – A MOVE AWAY FROM SENIORITY-BASED TO JOB-BASED AND PERFORMANCE BASED WAGE SYSTEMS
    GOOD PRACTICES THAT EMPLOYERS SHOULD ADOPT C.WAGES, MEDICAL AND BENEFITSI.HOW MUCH TO PAY YOUR RE-EMPLOYED EMPLOYEEII.WAGE COULD BE ADJUSTED TO LEVEL OF YOUNGER EMPLOYEE WITH SAME EXPERIENCEE.G $6,500 (original) BUT MARKET IS $4,000 TO $4,500, THEN OFFER MID RANGE $4K/$6.5K– TAKE INTO ACCOUNT EXPERIENCE OF EMPLOYEEOFFER MEDICAL BENEFITS (EXISTING BENEFITS/CO-PAYMENTS/CAPS ON AMT)NORMAL TERMINATION NOTICE / CLAUSES APPLY FOR MISCONDUCTFOR PART-TIME EMPLOYEES,  IF OFFERED MODIFIED JOB, NO EAP PAYABLE. IF EAP PAYABLE, FIGURE IS PRO-RATED TO FULL-TIME STAFFDIFFICULT TO RETAIN SENIOR MGT STAFF ON THE SAME JOB DUE TO LEADERSHIP RENEWAL – CAN CONSIDER IN SUBSIDIARY COMPANYEMPLOYEES WHO ARE RECRUITED AT AGE 55, MIN RETIREMENT AGE DOES NOT APPLY BUT STILL SUBJECT TO OFFER FOR RE-EMPLOYMENTWITH AT LEAST 3 YEARS SERVICE (OR EAP)EMPLOYEES WHO REACH RETIREMENT AGE, ISSUE OF RETRENCHMENT DOES NOT ARISEGOVT. ENCOURAGING EMPLOYERS TO RAISE INTERNAL RETIREMENT AND RE-EMPLOYMENT AGESWHAT IF EMPLOYER IS UNABLE TO OFFER RE-EMPLOYMENT

CONDITION:  EMPLOYEE IS ELIGIBLE FOR RE-EMPLOYMENT BUT EMPLOYER IS UNABLE TO OFFER RE-EMPLOYED EMPLOYEE A POSITION

1.  TRANSFER THE RE-EMPLOYED EMPLOYEE TO ANOTHER EMPLOYER

2.  OFFER A ONE-OFF EMPLOYMENT ASSISTANCE PAYMENT   (“EAP”)

CONDITION:  EMPLOYEE IS ELIGIBLE FOR RE-EMPLOYMENT BUT EMPLOYER IS UNABLE TO OFFER RE-EMPLOYED EMPLOYEE A POSITION

1.  TRANSFER THE RE-EMPLOYED EMPLOYEE TO ANOTHER EMPLOYER

2.  OFFER A ONE-OFF EMPLOYMENT ASSISTANCE PAYMENT   (“EAP”)

EMPLOYMENT ASSISTANCE PAYMENT

  1. OFFER OF LAST RESORT
  2. COMPENSATION MEANT TO ASSIST THE EMPLOYEE FIND NEW JOB

III.  ONE-OFF PAYMENT EQUIVALENT TO 3.5   MONTHS’ SALARY

  1. MINIMUM OF $6,250 AND MAXIMUM OF $14,750
  2. IF EMPLOYEE HAS WORKED AT LEAST 30 MONTHS SINCE AGE 63, LOWER MINIMUM   $4,000 AND MAXIMUM OF $8,500

DISPUTES WITH EMPLOYEES

EMPLOYERS – IT’S EMPLOYER’S INTEREST TO SETTLE DISPUTE AMICABLY BECAUSE OF THE INTEREST OF TIME AND INCONVENIENCE

EMPLOYEES – CAN COMPLAIN TO MOM / COMMISSIONER OF LABOUR OR TRIPARTITE ALLIANCE FOR DISPUTE MANAGEMENT (TADM)

  • NOT OFFERED RE-EMPLOYMENT
  • UNREASONABLE TERMS AND CONDITIONS  / EAP COMPENSATION

CONCLUDING COMMENTS

AGING WORKFORCE – IT’S A REALITY!

CHALLENGES WOULD BE GETTING THE SAME WORKFORCE TO RE-TRAIN WITH NEW JOB SCOPE (E.G. ADOPTION OF TECHNOLOGY FOR SILVER GENERATION); YOUNGER AND CHEAPER OR MORE PRODUCTIIVE JUNIORS

MINDSET CHANGE OF EMPLOYERS AND EMPLOYEES

(RETAIN OR GET RID; SHAPE UP OR SHIP OUT VS INCLUSIVE, PROGRESSIVE)

IMPACT ON EMPLOYEE’S EARNING AND FINDING THE BEST STRATEGIES;

FINDING ABILITIES AND STRENGTHS OF THE OLDER EMPLOYEES

GOVT’S INITIATIVE TO ENCOURAGE SW EAG – SENIOR WORKER EARLY ADOPTER GRANT UP TO $250,000 TO RAISE RETIREMENT AGE AND RE-EMPLOYMENT AGES ABOVE 63 YEARS OLD