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Oral Answer by Dr Amy Khor, Senior Minister of State for Health & Manpower, to Parliamentary Question on Re-employment of Older Employees

Notice Paper No. 263 Of 2014 For The Sitting On 8 September 2014 Question No. 196 For Oral Answer.

MP: Er Dr Lee Bee Wah

To ask the Minister for Manpower with the current policy to encourage those reaching 62 years to be offered re-employment (a) what checks are in place to protect those nearing 62 years from being retrenched as some employers may not wish to continue retaining them; and (b) whether the Ministry will consider more incentives to encourage employers to hire and retain older workers.

Answer

  1. The Retirement and Re-employment Act, which came into effect in 2012, protects older workers from being dismissed on the grounds of age below age 62, and from unfair denial of re-employment from age 62 up to 65. In situations where such workers feel that they have been unfairly treated, they can take up the matter with their union or the Ministry.
  2. Nevertheless, we also appreciate that there might be legitimate reasons where businesses need to restructure or are just not able to keep some of their older workers. The Tripartite Guidelines on Re-employment of Older Workers give employers some flexibility in re-employing their older workers. For example, employers can re-employ employees with some modifications on re-negotiated terms. Where employers are unable to offer re-employment to eligible employees, they should offer such employees a one-off Employment Assistance Payment. In the unfortunate event where retrenchments are necessary, employers should carry out retrenchment responsibly and in consultation with the union if the company is unionised.
  3. Over the years, the Government has introduced several incentives to encourage the hiring and retention of older workers.

    a. We provide generous funding under WorkPro to help employers redesign jobs and the work environment to adapt to the ageing workforce; and

    b. We also have the Special Employment Credit and Workfare Income Supplement to support employers and employees respectively to raise the employability of older low-wage Singaporeans.
  4. We have seen positive outcomes from our efforts. The employment rate of older residents aged 55 to 64 has increased significantly, from 47% in June 2004 to 65% in June 2013. Re-employment rates have been high, with 99% of private sector local employees who turned 62 in the year ending June 2013 offered re-employment.
  5. The Government will continue to monitor the situation to consider if further incentives are needed.