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Re-Employment

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Re-employment allows older workers to continue bringing value to Singapore’s workforce while offering more flexibility to employers.

As part of a set of measures to enable older employees to work longer, the Government enacted re-employment legislation to enable more people to continue working beyond the current statutory minimum retirement age of 62, up to 65 from 1 January 2012. From 1 July 2017, you must offer re-employment to all eligible staff up to the age of 67. You can refer to the Tripartite Guidelines on the Re-employment of Older Employees for more information.

Re-employment allows you and your employees to work out a mutually beneficial arrangement such that they can continue to work beyond the retirement age. However, it need not be for the same job position, on the same salary and terms.

As a good practice, you should engage your employees in re-employment consultation and planning at least six months before he/she attains the statutory minimum retirement age. If you have employees who are aged 65 this year, you are encouraged to continue re-employing them ahead of legislation. You can play a part to ensure that your staff remain employable to 67 years old and beyond.

Benefits

In what ways can your organisation benefit from re-employment? By retaining your experienced retiring employees, you are in fact maximizing the return on your investment on human capital. Re-employment also gives you the following benefits:

Addresses labour shortages with less effort

Re-employing older workers with the right experience, skills and fit for your organisation, dramatically cuts the time, effort and money you would have spent trying to find a new recruit. Your older workers will easily re-join or continue in your company and be able to perform their job efficiently as they are already familiar with your work culture, processes and colleagues.

Maximizes expertise and increase productivity

Even if you do not assign your older workers to the same job function or position, their level of experience and expertise will make it easy for them to take on a different assignment. For you, this translates to a high level of organisational productivity and work quality. You will see that your older workers can adjust to their new roles faster as compared to a new hire because they already know their way around the office and have colleagues they are comfortable working with. The shorter learning curve will save you time and effort in preparing your re-employed workers for their new roles. This means increased productivity and minimal down-time.

Increase in talent retention and loyalty

Re-employing older workers is an excellent way for you to instill organisational loyalty. Older workers double up as your company’s culture ambassadors and can mentor your younger employees. Based on their real-life experiences and examples, older workers can inspire your younger employees to plan on having successful career beyond the retirement age. This way, younger employees become more inclined to stay and establish a career with your company for the long-term.

Increase in your branding

Offering re-employment opportunities to older workers reflects positively on you and makes your company an “employer of choice”. By extending opportunities towards your skilled and capable older workers to re-enter the workplace, you present your organisation in a positive light as a great place to work in.