Employers should recognise re-employed older workers for their contributions
- The Straits Times (27 August 2014): Employers should recognise re-employed older workers for their contributions
- The Straits Times (23 August 2014) : Rehired older workers deserve bonuses, too
Employers should recognise re-employed older workers for their contributions
- The Straits Times, 27 August 2014
- The Ministry of Manpower (MOM) agrees with Mr Matthew Ong (“Rehired older workers deserve bonuses, too”, 23 August) that as Singapore’s workforce ages, enlightened employers would do well to tap on the skills and experiences of older employees. Recognising re-employed older workers for their contributions and rewarding them are ways to incentivise and motivate them to continue to perform well. This is also a position strongly endorsed by the tripartite partners.
- MOM introduced the Retirement and Re-employment Act in January 2012 to require employers to re-employ eligible workers who reach the minimum statutory retirement age of 62 (or contractual retirement age, whichever is higher), up to 65 years old. To provide guidance to employers, the tripartite partners also issued the Tripartite Guidelines on the Re-employment of Older Employees. The Guidelines recommend that employers continue to reward re-employed employees based on company and individual performance, where appropriate. This could be in the form of performance bonuses, long service benefits, gain-sharing incentives or one-off bonuses.
- In the civil service, re-employed officers are eligible for performance bonuses and annual salary increments, like all other employees. They are largely re-employed to the same job and most of them receive the same pay.
- However, as Mr Ong acknowledges, not every employer is able do this due to different business circumstances. Hence, the Tripartite Guidelines also give employers some flexibility in remuneration, recognising that rigid rules could affect the employability of older workers.
Rehired older workers deserve bonuses, too
- The Straits Times, 23 August 2014
There are some employers here who offer to rehire employees who reach the age of 62 on a year-to-year contract. Such a contract employee is no longer eligible to participate in any company-wide profit-sharing or gainsharing plans. He may also have his monthly salary reduced even though he continues to do the same work he has always done. This does not make sense.
A bonus system is one where bonuses are paid based on how the business performs. Contract employees still contribute to the performance of the business, so why discriminate against them? That said, there are employers who rehire employees once they turn 62 on a year-to-year contract but do not reduce their compensation or, if they do, will reduce their workload to match. I applaud these employers as models.
Unfortunately, not every employer can or will do this.
I urge the Ministry of Manpower to conduct a survey to find out what employers are doing and set guidelines so there is consistency. It will also be interesting to know what the civil service does when it rehires employees.