Written Answer by Mr Tharman Shanmugaratnam, Deputy Prime Minister & Minister for Finance and Minister for Manpower, to Parliamentary Question on the Implementation of Retirement and Re-employment Act

Ms Foo Mee Har: To ask the Deputy Prime Minister and Minister for Manpower if he will share the results of implementing the Retirement and Re-employment Act since the amendments to the Act on re-employment provisions came into effect on 1 January 2012.

Mr Tharman Shanmugaratnam:

The implementation of the Retirement and Re-employment Act has been relatively smooth. Since the re-employment policy was first announced 5 years ago, the tripartite partners have been working closely together to prepare companies and workers for its implementation. In 2011, about 79% of private establishments had in fact already implemented measures to allow their local employees to work past the age of 62 even before the Act took effect. Employers in general are re-employment ready.

MOM provides conciliation services to employers, unions and employees to help them resolve any re-employment issues amicably. If the issue cannot be resolved through conciliation, workers may appeal to the Minister for Manpower, or lodge a claim with the Commissioner for Labour to seek remedy.

Since 1 January 2012, MOM has received fourteen re-employment dispute cases, mostly over eligibility for re-employment. Several have been successfully settled, while the remaining cases are still undergoing discussion and conciliation.

To avoid any disputes, employers should refer to the Tripartite Guidelines on the Re-employment of Older Employees which provides advice on engaging employees and in making re-employment offers. The Government has also reconstituted a tripartite workgroup comprising representatives from the unions, employer groups and the government to monitor the progress of implementation of the re-employment law and the Tripartite Guidelines, and to address issues that may arise.

The new re-employment legislation is very important in helping us look after our older workers and to increase employment opportunities for them. The employment rate of older residents aged 55 – 64 has increased from 59% in 2010 to 61.2% in 2011. We must help our people, regardless of age, acquire the right skills, and we must promote the adoption of age-friendly practices so that older Singaporeans can continue to work if they choose to, and to earn a regular income as long as they are healthy.