The Retirement and Re-employment (Amendment) Bill 2016 passed by Parliament yesterday will help improve re-employment opportunities for older workers by effecting three changes that will take effect from 1 July 2017.
According to a statement by the Ministry of Manpower, the changes include:
Raising the re-employment age from 65 to 67
The new re-employment age of 67 will apply to locals who turn 65 on or after 1 July 2017 (i.e. those born on or after 1 July 1952).
Introducing an option to allow eligible employees to be re-employed by another employer
This amendment allows an employer who is unable to offer a suitable position in his own organisation, to transfer his re-employment obligations to another employer under the following conditions:
- The older employee consents to the transfer.
- The second employer agrees to take over all applicable re-employment obligations.
If either condition is not met, the original employer still has to fulfil its re-employment obligations such as offering an Employment Assistance Payment (EAP) if the employer cannot find a job in its organisation for the older employee.
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Source: Human Resources Online