Re-employment Decision

Dear HR Community

We have an employee who has passed the retirement age of 62.

Even though his performance rating has only been average we are still considering re-employment on an annual contract basis.

And we are only doing this because we are afraid he will complain to MOM if we don't offer him a contract.

Is offering him the one year contract the right decision?

We are in the healthcare industry.

Please share with me your thoughts. Thanks in advance




HR Poll: Is offering the one year contract the right decision?

Yes: 69.57%

No: 21.74%

Perhaps: 6.52%

Not Sure: 2.17%




Re-employment is a choice given to employee and employer. If performance is not as the company wishes then with due respect and notice period this relationship can be terminated. - Amrit

You can continue to assess him on a yearly basis on his continued employment but if his performance is not meeting expectations then give him enough time to prepare for retirement/another job and also offer him some form of compensation. You can check on the guidelines on offering compensation ie a minimum 3 months' gross salary was what I understand but could have changed. - Munjit

If the company has the budget and he is still able to perform his role. - Vannessa

If you are not in need of this person's knowledge, expertise, and unique experience and probably don’t want or need to extend the contract for another year, I would not do it. Delaying the inevitable is a waste of your time. If you can get them to sign a notice of retirement by offering an additional month or two that could solve your problem much cheaper than dealing with attorneys. Good luck! - Tom

My Company also offered a senior aged 72 a yearly contract based on his medical report from the doctor. As long as he is fit and your company needs his service. - Christina

You should not hire him on re-employment because you fear that he will lodge a complaint to MOM. In fact, part of the assessment of offering a re-employment contract is his capability to perform the job. If it has been assessed that he would not be able, then I would advise not to proceed. You could consider offering him an Employment Assistance Payment. - Sharon

Send the incumbent for a check-up too. - Lona

If he meets the criteria for re-employment, he'll be eligible to be re-employed. - S

I am afraid the re-employment age will be raised to 68 from Jul 1 next year. Since his performance is average rated, the company should continue his employment until such period reached to consider a re-employment for him or her.
The company may consider continuing to offer him the job even if no re-employment letter is given. - Connie




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