Re-employment of Older Workers legislation 2012, including TIWG

The re-employment legislation will be enacted in 2012 to enable more people to continue working beyond the current statutory retirement age of 62, up to 65 in the first instance and, later, up to 67. This change, accompanied by increased Workfare Income Supplement (WIS) for older, low-wage workers, will complement the CPF Minimum Sum Draw-Down-Age (DDA), which will progressively be raised from 2012.

Formed under the aegis of the Tripartite Committee on Employability of Older Workers, the Tripartite Implementation Workgroup (TIWG) aims to help companies put in place the necessary processes and systems for re-employment to work. The TIWG has been working closely with employers and employees to adopt the Tripartite Advisory on the Re-employment of Older Workers. Based on industry feedback, the TIWG has updated and expanded the Advisory into Tripartite Guidelines on the Re-Employment of Older Employees to better prepare employers and employees for the re-employment legislation.

Under the Guidelines, the TIWG has identified good re-employment practices that employers should consider adopting in the following areas:

1. Planning and preparing employees for re-employment

2. Identifying eligible employees for re-employment
3. Pre-retirement planning and re-employment consultation
4. Job arrangements for re-employment
   
   

   The re-employment contract

5. Offer of re-employment
6. Duration of re-employment
7. Adjustments to wages and medical and other benefits
8. Termination with notice

Recognising the contributions of re-employed employees

Assistance for eligible employees whom employers cannot re-employ

Employers, in consultation with the unions, are encouraged to take a long-term view in planning and preparing employees for re-employment. Employers should see older employees as a source of quality manpower and recognise the value of making the workplace age-friendly. At the same time, employees have to see the benefit of staying employable, and should be flexible and adaptable so as to continue to contribute to the organisation.

As Singapore’s population and workforce rapidly ages, there is an urgent need to tap into the valuable skills and experience of older employees. Employers are urged to implement the Guidelines even before re-employment legislation comes into effect. On their part, employees are encouraged to be flexible in working out re-employment arrangements with their employers, so that they can continue to contribute to their organisations and earn a regular income. This will better prepare both parties for the new legislation, provide employment opportunities to employees beyond the statutory retirement age, and raise the effective retirement age of employees in Singapore.

Useful links

Full text on the tripartite guidelines on the re-employment of older workers