WWLegal.com :: Proposed Law To Make Older Workers Employable

Proposed Law To Make Older Workers Employable
Posted on Sunday, August 19, 2007 - 09:00 PM

A new law will come into effect to ensure that Singaporeans stay employed longer. From 2012, a re-employment law will be passed making it mandatory for employers to offer re-employment to workers who have reached the retirement age of 62. Initially, they will have to offer re-employment for workers up to the age of 65. This will later be increased to the age of 67.

Prime Minister Lee Hsien Loong said in his National Day Rally speech on Sunday that retiring at 55 or even 62 is far too early. Countering suggests that retirement age should be raised to solve the problem, Mr Lee said experience has shown that would not be the right solution.

A higher retirement age may discourage employers from hiring older workers. The better approach, Mr Lee said, is to legislate for re-employment to continue beyond the age of 62. However, making sure that the employer makes an offer to rehire a worker at the age of 62, does not mean he or she will definitely get the same job at the same pay. The employer will take into account the worker's performance, health and preferences, as well as the company's needs.

"It's more flexible for both the employers and employees... not necessarily the same job, not necessarily the same pay, but employer has to make an offer, taking into account the worker's performance, his health, his preferences and the company's needs, and both sides work out a win-win arrangement," said PM Lee.

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