Singapore Two Sets Of Revised Tripartite Guidelines Recently Released.

Previous Guidelines

Revised Guidelines

• Re-employment age to be raised from 65 to 67 on 1 July 2016.

Duration of Employment

• 3-year re-employment contracts to be offered, up to age of 65; or

• Yearly renewable contracts up to age of 65.

• 5-year re-employment contracts to be offered, up to age of 67; or

• Yearly renewable contracts up to age of 67.

Wages

• Employers are discouraged from making wage adjustments if there is no seniority–based element in their wage system.

Medical Benefits

• Employers may wish to consider the following options:
o Co-payments of

medical benefits for re-

employed employees; o Appropriate caps on

• Employers may wish to consider the following options: o Continue providing

existing medical benefits; o Where medical costs are

a concern:
Co-payment of

medical benefits

claimable; or
o Employers providing

additional Medisave contributions for payment of Medishield premiums, in lieu of in-patient medical benefits.

medical benefits; or Appropriate caps on

medical benefits; o Restructure existing

medical benefits into another suitable portable medical scheme; or

o Leverage Medishield Life to provide medical benefits by providing additional Medisave contributions.

Recognising the contributions of re- employed employees

• Employers should continue to reward re-employed employees where appropriate.

• Employers should continue to reward re-employed employees, where appropriate, using these principles:

o Annual increments for re-employed employees not already at the maximum salary.

o Variable payments, subject to negotiation and mutual agreement.

o Adjustments should be based on reasonable factors.

Employment Assistance Payments (EAPs) when unable to re- employ

• EAP could be 3 months of salary.

• Minimum EAP amount of $4,500.

• Maximum EAP cap of $10,000.

• Lower EAP of 2 months salary for employees who have been re-employed for at least 18 months since age 62 (subject to minimum EAP of $3,000 and maximum EAP of $7,000).

• EAP could be 3.5 months of salary.

• Minimum EAP amount of $5,500.

• Maximum EAP cap of $13,000.

• Lower EAP of 2 months salary for employees who have been

  re-employed for at least 30 months since age 62 (subject to minimum EAP of $3,500 and maximum EAP of $7,500).

• Employer and union could consult on EAP where appropriate.

Previous Guidelines

Revised Guidelines

Managing Excess Manpower Generally

• Employers should consider alternatives to retrenchment where possible.

• Employers should consider alternatives to retrenchment where possible.

• Responsible retrenchment where retrenchment is inevitable, with employees being treated with dignity and respect.

• Companies should take a long term view of their manpower needs, including the need to maintain a strong Singaporean core.

• Selection of employees for retrenchment should be based on factors such as the ability of the employee to contribute to the company’s future business needs.

• Companies should not discriminate on grounds of age, race, gender, religion, marital status, family responsibility or disability.

• MOM will investigate complaints of discriminatory employment practices, including retrenchments that unfairly target Singaporeans or result in Singaporeans being replaced with foreigners. If any such complaints are substantiated, companies may have their work pass privileges cut.

Retrenchment Benefits

• Payable to employees with 3 years or more service with the company.

• Payable to employees with 2 years or more service with the company.

• Companies should pay all salaries due and retrenchment

benefits by the employee’s

last day of work.
(re quantum of retrenchment benefits, no change from current recommendations, i.e., 2 weeks to 1 month salary per year of service, depending on financial position of company and taking into account industry norm or 1 month per year of service in unionised companies.)

Notice to Employees

• As provided for in collective agreement, contract of service or under the Employment Act.

• Companies should communicate intentions of retrenchment early and before public notice is given. This may include:

o Explaining business situation of company;

o Outlining how retrenchment will be carried out;

o Specifying the assistance being offered; and

o Advising what factors will be considered.

• A longer notice period is encouraged for retrenchment situations, or payment in lieu of such notice.

• Companies should be sensitive to the emotional needs of employees and provide counselling support where necessary.

Employment Facilitation

• Companies should help affected workers look for alternative jobs.

• Companies should help affected workers look for alternative jobs.

• Companies are urged to go beyond advisory assistance

by making practicable efforts, possibly with the help of intermediaries such as employment agencies.

• Supporting documentation, such as referral letters,

service records and past training certificates should be provided.

• Companies can work with unions, SNEF and other agencies to assist the affected employee.

• Early notification to the MOM may also assist.