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Re-employment

Employers must offer re-employment to eligible employees who turn 62, up to the age of 65. Find out if you are eligible, guidelines on re-employment and what to do if there is a dispute.

From 1 July 2017, employers must offer re-employment up to the age of 67. More info.

Under the Retirement and Re-employment Act (RRA), the minimum retirement age is 62 years. Employers are not allowed to dismiss any employee below this age because of the employee’s age.

Employers must offer re-employment to eligible employees who turn 62, up to age 65, to continue their employment in the organisation.

Special Employment Credit (SEC)

Through the SEC, employers who voluntarily re-employ workers aged 65 and above will receive an additional offset of up to 3% of an employee’s monthly wages.

The SEC enhancement will help employers manage their overall costs and encourage them to voluntarily re-employ older workers aged 65 and above.

To find out more, visit the SEC website.

Eligibility

You are eligible for re-employment if you:

  • Are a Singapore citizen or Singapore permanent resident
  • Have served your current employer for at least 3 years before turning 62
  • Have satisfactory work performance, as assessed by the employer
  • Are medically fit to continue working

If you are eligible for re-employment but your employer is unable to offer you a position, then your employer must offer you a one-off Employment Assistance Payment (EAP).

Contract

Your re-employment contract should be for at least 1 year, renewable every year up to age 65.

Salary and benefits

Your salary may be adjusted based on factors such as new duties or responsibilities. You should negotiate these changes with your employer when you finalise your new contract. A good reference is the Tripartite Guidelines on Re-employment of Older Employees.

Negotiating a re-employment contract

Keep the following in mind when negotiating the terms of a re-employment contract.

For employers
  • Identify eligible employees for re-employment.
  • Begin discussions as early as 6 months before your employee turns 62.
  • For eligible employees, offer a re-employment contract at least 3 months before their retirement date.
  • For employees who do not qualify, inform them early so that they can better prepare for their retirement or seek other employment opportunities.
  • Refer to the Tripartite Guidelines when making your re-employment offer.
  • Ensure terms and conditions are fair and reasonable.
For employees
  • Make your job preferences known early in the consultation process.
  • Be flexible and keep an open mind about possible changes to your job arrangement or employment terms.

Employment Assistance Payment (EAP)

If your employer has considered all available re-employment options within the organisation and is still unable to identify a suitable job for you, the company may offer you an Employment Assistance Payment (EAP).

The EAP is:

  • Offered only after a thorough review, as a last resort.
  • Meant to help you tide over a period of time while you 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.

Disputes

You should work together with your employer (or union, if applicable) to resolve any differences.

You can also approach the Commissioner for Labour (COL) in the following situations:

Situation When to approach
You are not offered re-employment and you dispute your employer's reasons for it. This could include not meeting the re-employment eligibility criteria, no suitable job vacancy, or dismissal during re-employment. No later than 1 month after the last day of employment
You feel that the terms and conditions of the re-employment offer or the EAP amount offered is unreasonable. No later than 6 months after the last day of employment

You can notify the COL using this appeal form.