Re-Employment of Older Employees
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To provide opportunities for older workers to continue working beyond 62, the Government enacted the Retirement and Re-employment Act (RRA) in 2012. Under the RRA, employers have to offer re-employment to eligible employees who turn 62, up to age 65. Both employers and employees have the flexibility to make adjustments to work arrangements to meet their respective needs. The re-employment legislation allows employers to retain their experienced employees and at the same time, keep their company competitive. Employers can refer to the Tripartite Guidelines on the Re-employment of Older Employees, which provides practical guidance on how to implement re-employment.
In September 2014, the Tripartite Committee on Employability of Older Workers recommended a promotional approach to encourage employers to re-employ older workers further from age 65 to 67. The tripartite partners have also issued a Tripartite Advisory on Re-employment from Age 65 to 67 to guide employers to do so. In addition, to help manage employers’ overall costs, employers who voluntarily re-employ workers aged 65 and above in 2015 will receive an additional Special Employment Credit (SEC) offset of up to 3% of employees’ monthly wages.
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