Friday, 22 July 2011 14:09
Retirement and Re-employment Practices, 2010
More establishments are allowing employment beyond 62
- Close to eight in ten private establishments would allow their local employees to work past the age of 62 in 2010. Nearly all local employees retiring in 2010 who were offered employment beyond 62 agreed to stay on. These are the key findings from a survey conducted by the Ministry of Manpower (MOM) on a sample that effectively covered 3,100 private establishments (each with at least 25 employees), which yielded a response rate of 90%.
- More establishments are reporting that they allow employment beyond 62. The proportion of private establishments that allowed their local employees to work past 62 increased significantly from 64% in 2009 to 77% in 2010. These establishments employed 85% of local employees in the private sector, up from 77% in 2009.
- The majority or 61% of all private establishments surveyed allowed their employees to continue working on existing contracts while 17% offered re-employment. Nevertheless, more locals were employed in establishments offering re-employment (47%) than in those allowing them to continue working on existing contracts (39%). This was because large establishments were more likely to offer re-employment than the smaller ones1.
- Satisfactory work performance and medical fitness were common criteria for re-employment, with over nine in ten private establishments with re-employment policy adopting these criteria.
- Of the private establishments with re-employment policy in 2010, 61% conducted re-employment consultation with their retiring local employees. This increased from 41% in 2009.
- About 9,900 local employees reached 62 in the year ending June 2010. A large majority or 94% of them were allowed to work beyond 62. 65% were allowed to continue working without a new contract and 30% were offered re-employment, mostly in the same job. Nearly all (96%) who were offered employment beyond 62 accepted the offer.
- More establishments had plans to retain (55%) their older employees aged 55 to 62 than to recruit new older workers (42%). A smaller proportion (23%) of private establishments had redesigned jobs to make it more suitable for older workers.
- In summary, a large majority of establishments have put in place measures to allow their local employees to work beyond the age of 62, ahead of the implementation of the Retirement and Re-employment Act in January 2012. Nevertheless, there is scope for more establishments to engage their employees on re-employment issues. Finally, while most workers approaching 62 who are in employment would potentially be able to continue working beyond 62, the challenge remains in getting more employers to recruit older workers.
For More Information
The report is available for download at the MOM's Statistics and Publications webpage.
1 64% of large establishments (with at least 200 employees) offered re-employment, higher than 19% for smaller establishments (with 25 to 199 employees). The latter were more likely to allow continuation of employment (56%) than the large establishments (28%).
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