Clause 9

For the purposes of this Act, an employee shall be eligible for re-employment if —

he attains the specified age on or after 1st January 2012; and

upon attaining or having attained the specified age or other higher age, which higher age shall not exceed 65 years or such other age, up to 67 years, as may be prescribed by the Minister, he —

is assessed by his employer to have at least satisfactory work performance; and

is medically fit to continue working.(2) For the purpose of subsection (1)(b)(ii), an employee shall be presumed to be medically fit to continue working, unless the employer of the employee proves, on a balance of probabilities, that the employee is not medically fit.Employer to re-employ eligible employee7A.—

An employer shall, before his employee (being an eligible employee) attains the specified age, offer re-employment to that employee and the obligation of the employer to re-employ that employee shall begin from the time that employee attains the specified age, until that employee attains the age of 65 years or such other age, up to 67 years, as may be prescribed by the Minister.(2) Where —

an employee who attains the specified age on or after 1st January 2012 continues to work for his employer after he has attained the specified age; and

the employer does not, upon that employee attaining the specified age —

re-employ that employee; or

terminate the employment of that employee,then any right, privilege, obligation or liability acquired, accrued or incurred by the employee under the contract of service between him and his employer before he attains the specified age shall not be affected.(3) Where subsection (2) applies, the employer referred to in that subsection —

may, at any time after the employee referred to in that subsection has attained the specified age —

re-employ the employee; or

terminate the employment of the employee if the employee does not satisfy the eligibility criteria set out in section 7(1); and

shall be deemed to have complied with the requirement under subsection (1) for the period between —

the time the employee attains the specified age; and

the time the employer re-employs the employee or terminates the employment of the employee under paragraph (a).(4) For the purposes of re-employment under subsection (1) or (3)(a)(i), a new contract of service shall be entered into by the employee and his employer in which the job scope and the terms and conditions may vary from the previous contract of service between them.(5) Any variation referred to in subsection (4) shall be based on reasonable factors such as, but not limited to, the employee’s productivity, performance, duties and responsibilities, and the wage system such as the seniority system applicable to the employee.(6) Unless otherwise agreed by the parties to a new contract of service for the purpose of re-employment under subsection (1) or (3)(a)(i), the period of employment stipulated in the contract shall not be less than one year at any one time.(7) Notwithstanding subsection (6), where the period between —

the effective date of the coming into force of a new contract of service for the purpose of re-employment under subsection (1) or (3)(a)(i); and

the date on which the employee (who is party to the new contract of service) attains the age of 65 years or such other age, up to 67 years, as may be prescribed by the Minister,is less than one year, the period of employment stipulated in the new contract of service may be for that shorter period.(8) Where an employer does not intend to re-employ an employee because the employee does not satisfy the eligibility criteria set out in section 7(1), the employer shall, in so far as reasonably practicable, give notice in writing to the employee, within a reasonable period before he terminates the employment of the employee, stating his intention to do so.(9) Notwithstanding any of the provisions of this Act, an eligible employee may retire or be retired, if he does not wish to be employed by his employer on or after the date he attains the specified age.(10) An eligible employee who intends to retire shall, in so far as reasonably practicable, give notice in writing to his employer, within a reasonable period before he retires, stating his intention to do so.Period of service under previous employment contract and under re-employment contracts7B.—

Unless otherwise agreed by parties to a contract of service, and subject to subsections (2) and (3), when a new contract of service is entered into between an employer and his employee pursuant to section 7A(4), then for the purposes of determining any right, privilege, obligation or liability to be acquired, accrued or incurred by the employee under his new contract of service, any period for which the employee has served under his employer under the previous contract of service before he commences his service under the new contract of service shall be disregarded.(2) Any period for which an employee has served under his employer before he commences his service under the new contract of service entered into pursuant to section 7A(4) shall be reckoned for the purposes of —

computing the minimum period of 3 months for entitlement to annual leave under section 43(1) of the Employment Act (Cap. 91); and

determining the period of service of an employee for entitlement to paid sick leave under section 89(1) and (2) of the Employment Act.(3) Where there is more than one contract of service entered into by an employee and his employer pursuant to section 7A(4), the aggregate periods for which the employee has served under his employer under those contracts of service shall be treated as continuous service for the purposes of determining any right, privilege, obligation or liability acquired, accrued or incurred by the employee under those contracts.Employment assistance payment7C.—

If an employer is unable to re-employ an eligible employee in accordance with section 7A because the employer is unable to find a vacancy in his establishment which is suitable for the eligible employee despite making reasonable attempts to do so in accordance with the tripartite guidelines, the employer shall be required to —

retire the eligible employee, or allow him to retire, on or after the date he attains the specified age; and

offer an employment assistance payment to the eligible employee.(2) Notwithstanding subsection (1), an employer shall not be required to offer any employment assistance payment to an eligible employee who informs his employer of his decision not to continue to be employed by his employer on or after the date he attains the specified age.(3) Subject to subsection (4), the employment assistance payment shall be —

a single lump-sum payment paid by an employer by the last day of employment of the eligible employee; or

other mutually agreed arrangements.(4) In determining the amount of employment assistance payment to be paid under this section, an employer shall take into account the tripartite guidelines.”.