Turning 62? Worry not as more establishments would still employ you

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 ones.

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.