Nov 3, 2011

Singapore - Bosses urged to act ahead of re-hiring law in 2012


Minister of State for Manpower Tan Chuan-Jin has strongly urged companies not ready for the re-employment legislation to take action now.

He asked employers to tap on all available resources and assistance to make necessary adjustments before the new law kicks in from 2012.

The legislation will make it compulsory for employers to re-hire suitable employees beyond the statutory retirement age of 62.

Mr Tan was speaking at the first Age Friendly Workforce Asia Conference on Thursday.

While firms have to re-hire qualified workers beyond the retirement age up to 65 years old under new re-employment legislation, hiring terms are open for negotiation.

Research done by the Tripartite Alliance for Fair Employment Practices found two ways for companies to improve their chances of finding suitable candidates from the pool of mature job-seekers. The first is to diversify the age composition of recruitment selection panels, while the second is to provide flexible work arrangements as part of human resource policies.

But it appears that the stumbling block to re-employment is an old mindset.

Cham Hui Fong, assistant secretary-general of the National Trades Union Congress, said: "...if the opinion that (employers) have for older workers is - '62 is your retirement age, and (you) have to retire at 62. Beyond that, I am doing you a service, by allowing you to stay longer', a lot of obstacles will come in."

Hence a need to view seniors as experienced assets, rather than liabilities.

Mr Tan said; "Bear in mind how we treat our older workers, because that is how your younger workers will look at you because at some point, they will also become older workers. And I think for many of us, we do realise (that) building a great organisation...(has) a lot to do with how we treat our people. I think this is an opportunity for us to retune the way we look at things."

Mr Tan also said the general sense is that most employers are re-employment ready.

He said many employers, like larger companies and those in the unionised sector, have already implemented re-employment.

In addition, Mr Tan said businesses, including small and medium enterprises, continue to employ workers past 62 until 65 or even older, with little or no change to employment terms.

However, he said it is not enough to help workers work longer through re-employment.

Mr Tan said work also needs to be done to facilitate an age-friendly workplace and environment.

To date, over 1,800 employers, representing more than 650,000 employees, have signed the Employers' Pledge of Fair Employment Practices, fuelling the move to value older workers.

- CNA/ms


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