Understand Re-Employment


In Singapore, the official retirement age is 62. This means that your employer cannot dismiss you based on your age if you are younger than 62 years old.

In order to encourage Singaporeans to continue working, Singapore has also introduced re-employment.


What is re-employment?

A process when employees are offered contracts to continue working at the company until the age of 67. All companies must offer reemployment to employees if they meet the conditions of re-employment.


Conditions for re-employment

  1. Satisfactory work performance Simply put, you must be able to perform your roles within the job. How good the work performance will be determined by the employers

  2. Medically Fit to continue working This means that you should have the physical ability to do the job and that your health will not affect your work. It is assumed that you are medically fit and you will not need to attend a medical screening to prove your fitness.

  3. Has been in the company for at least 3 years before turning 62


Exemptions to re-employment

Companies do not need to offer these people re-employment even if they meet the conditions for re-employment.


The 3 main exemptions are:

  1. Employees who have only started working with the company after 55 years of age and have worked with the company for less than 3 years.

  2. Employees who work less than 20 hours a week.

  3. Employees who are contracted on a project basis.


Consultation and offer

Re-employment is offered through a contract. 6 months before your 62nd birthday, the company should start consultation to negotiate a contract for reemployment. 3 months before your 62nd birthday, the company should offer the re-employment contract.


The minimum length of the contract will be a year and re-employment contracts can go up to 5 years. If you are given a yearly contract, the same negotiation and offer timeline applies to your subsequent re-employment contracts as well.


If your company does not mention re-employment to you, you can assume that you will continue working in the same job with the same job scope and benefits after you turn 62. Your company can still offer a re-employment contract at a later date.


Contract

During the negotiation and consultation phase, you will have to discuss the various points:

  • Working hours

  • Scope of work

  • Salary


If your company is unable to offer you reemployment, they can provide the various options:

  1. Employment Assistance Payment This is a one-time payment from your company as a form of financial support while you look for other jobs. If you are between the age of 62 and 64.5, you will receive 3.5 months of your gross rate of pay. The payment at this age range is capped at $13,000. If you are between the ages 64.5 to 67, you will receive 2 months of your gross rate of pay. The payment at this age range is capped at $7,500. So for example, if you are 65 years old earning $4000 a month and your company offers you the employment assistant payment because they are unable to re-employ you, you will receive $7500. If you turn down a re-employment contract from your company, you will not be given the Employment Assistance Payment.

  2. Transfer of reemployment This means that your current company will help you find re-employment in another company. This happens only if you agree to the re-employment contract from the new company and the new company agrees to take over the reemployment obligations. If you turn down this arrangement, you will still be eligible for the Employment Assistant Payment.


FAQ:

  • Can I retire before 62 years old? Yes, you may. The retirement age is there to protect you from wrongful dismissal.

  • What do I do if I feel that the re-employment contract is unfair? You can approach the Ministry of Manpower, the Tripartite Alliance for Dispute Management or your union. It is better to flag the issue as soon as possible as the Ministry of Manpower has a timeline for such disputes.

  • Can I work after 67 years old? Yes, this is up to the discretion of your company.


Source: Ministry of Manpower, NTUC, Singapore Legal Advice

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