Changes to Re-Employment

StaffOnDemand Blog

The re-employment age will be raised to help older workers who wish to continue working as long as they are willing and able.

Employers will be required to offer re-employment to eligible employees from age 62 to 67 to continue employment in their organisation.

Eligibility

An older worker will be eligible for re-employment up to age 67 if he/she:

  • is a Singapore citizen or Singapore permanent resident.
  • Have served his/her current employer for at least 3 years before turning 62.
  • Have satisfactory work performance, as assessed by his/her employer.
  • is medically fit to continue working.
  • is born on or after 1 July 1952.

Re-employment by a different employer

If the employer is unable to re-employ the older worker, the employer can transfer re-employment obligations to another employer instead of paying an Employment Assistance Payment (EAP) to the older worker.
Safeguards for the older workers include:
  • The older worker must be willing to accept re-employment with the other employer.
  • The other employer must be willing to take on the existing re-employment obligations for the older worker, including:
    • Being required to offer re-employment to the older worker up to age 67.
    • Offering EAP should the employer subsequently be unable to offer re-employment to the older worker up to age 67.
More guidelines about re-employment by a different employer will be made available later.

 

Employment Assistance Payment (EAP)

If the employer has considered all available re-employment options within the organisation and is still unable to identify a suitable job for the older worker, the company may offer the older worker an Employment Assistance Payment (EAP).
The EAP is:
  • Offered only after a thorough review, as a last resort.
  • Meant to help older workers tide over a period of time while they seek alternative employment.
  • A one-off payment equivalent to 3 months' salary, subject to a minimum of $4,500 and maximum of $10,000.
Note:
  • For employees who have been re-employed for at least 18 months, a lower EAP amount of 2 months of salary could be considered, subject to a minimum of $3,000 and maximum of $7,000.
  • In addition to the EAP, employers are encouraged to provide outplacement assistance, to help employees find alternative employment.

Source

Changes to Re-employment from 1 July 2017, Ministry of Manpower

http://www.mom.gov.sg/employment-practices/re-employment/changes-to-re-employment