The parliament of Singapore passed bill on Tuesday to make it mandatory for companies to offer re-employment to workers beyond the statutory retirement age of 62.
The intent of the law, expected to take effect in 2012, is about giving older workers the right to continue being employed, lawmakers said.
There will be flexibility for employers, however. Re-employment will not necessarily be the same job on the same terms, but workers should be given the option to stay on their jobs if they are medically fit and have satisfactory performances on the jobs.
Under the new rules, companies should also talk to their employees about their options at least six months before they reach retirement age.
If the employer is unable to offer a job to the retiree, a one- time employment assistance payment should be provided to help the worker until he finds another job. The recommended payment is up to 3 months of the worker’s salary but not more than 10,000 Singapore dollars (7,718 U.S. dollars).
Workers can turn to the Ministry of Manpower for help in the case of disputes.
Singapore has an aging population, with 20,000 expected to be affected by the law next year. One in five Singaporeans will be aged 65 and above by 2030.