How should the re-employment exercise be conducted?
Courts also weigh the procedure of the re-employment exercise, including the timing of the offer and how much time the employee was given to consider it, lawyers said.
In this case, the magistrate took issue with how the company conducted the exercise, ruling that it had not reasonably engaged or consulted the claimant.
The man turned 63 in March 2025, Singapore’s statutory retirement age at the time, and the company made no move on re-employment beforehand. He emailed about his re-employment on Jun 8, and the company responded two days later with an offer.
He raised concerns about the terms of the contract, including the six-month period and lower salary, and asked for more time to consider the offer while he was on medical leave.
The company said its deadline of Jun 17 was non-negotiable. The man then rejected the offer and the company terminated his employment the next day.
Lawyers said companies should engage workers on re-employment at least six months before retirement, and extend an offer at least three months out, so employees do not face undue pressure.
Many companies simply fail to track when employees reach retirement age, said Ms Ong, so discussions often start only once retirement is imminent.
“Because of that, when they realise, they start rushing through the discussions and they feel like they need to sort this out very quickly,” she said. “The engagement with the employee starts being very rushed, very hurried. And then the employee gets upset because they don’t understand what’s going on or they feel like they’re not being heard.”
Starting discussions early helps ensure workers do not “go away feeling like this is just a box-ticking exercise”, Ms Ong said. Where a company has already decided not to retain an employee, any offer made can end up “for show” – made with little explanation or room for discussion.
Read Full Article At Source


