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?
Not Sure: 2.17%
REPLIES & COMMENTS:
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