Sumiko at 61: Employer thinks you are too old? Here’s how the laws protect you - Opinion

Three months before Mr Francis Ng turned 63 in 2024, he received a letter from his employer titled "Health concerns".

In it, he was told he was being put on early retirement, and had one month's notice to leave the company.

Mr Ng, a production manager at a factory that makes kitchen counter tops, was flummoxed. What "health concerns" was his boss referring to?

The only thing he could think of was how, a few weeks earlier, he had been given five days of medical leave for heartburn.

He had been with the company for 18 years, though under a different management before. He says he was a diligent worker, showing up six days a week, and was known for his skill at driving a forklift.

When he raised the letter with his boss, he was met with remarks like "your eyes cannot see properly any more". That made him more furious. "'Are you a doctor?' I asked him. He kept quiet." Mr Ng told his employer that a recent polyclinic check-up had found nothing wrong with his eyesight.

He turned to the National Trades Union Congress (NTUC) for help. After a month of negotiations, his employer agreed to give him an employment assistance payment of just under $10,000, to be paid in six instalments. He did not get his job back.

"I felt disappointed and very sad," he says of how he was treated. "It wasn't even a retrenchment with compensation but 'early retirement'."

A father of two grown-up daughters, Mr Ng now works part-time as a cashier at a petrol station while his wife teaches at a kindergarten.

His experience isn't unique. Age discrimination in the workplace is more common than many may realise.

Sometimes, it is blatant, as in Mr Ng's case. At other times, it is harder to prove, like when mature job seekers never get called for interviews even though they tick every box.

And then there's the insidious, everyday kind of bias -- the assumptions that older colleagues can't catch up with technology, resist change or talk too much.

Mr Dennis Yum, a career coach at NTUC's Employment and Employability Institute (e2i), hears it all the time.

"Many older job seekers have valuable, transferable skills like problem-solving, leadership and cross-functional knowledge but struggle to get a job," he notes.

I get it now.

In my 20s, 30s and even 40s, I saw older colleagues as belonging to a different world.

In the blink of an eye, I'm in their shoes and I finally understand the challenges they were quietly navigating, keeping up with change, staying visible, sharp and in the game.

To get a better sense of what counts as age discrimination -- and what protections there are for mature workers -- I spoke to the Ministry of Manpower (MOM), NTUC and the Singapore National Employers Federation (SNEF). They are the tripartite partners that shape labour laws and practices in Singapore.

Who's still working?

More older Singapore residents are staying in the workforce, a trend that's likely to grow as people live longer, healthier lives.

According to the Labour Force Survey, about 66 per cent of citizens and permanent residents aged 55 to 64 were working in 2014. By 2024, that figure had risen to about 70 per cent.

Among those aged 65 and over, the employment rate had also gone up -- from about 24 per cent in 2014 to 32 per cent in 2024.

Most seniors today work in sectors like transport, storage, manufacturing and wholesale trade, in both PMET and non-PMET roles, says an MOM spokesperson.

Future generations of seniors will be better educated and are more likely to work in PMET-heavy industries such as finance, insurance, communications and professional services.

Which laws protect mature workers?

The key laws and guidelines that cover older employees are:

This sets out Singapore's minimum retirement age for employees, and requires employers to offer re-employment to eligible senior workers up to the re-employment age.

It prohibits employers from dismissing workers solely due to age before they reach retirement age. It also requires employers to provide an employment assistance payment (EAP) if they can't re-employ an eligible worker after considering all available re-employment options within the company.

The current retirement age is 63 and re-employment age is 68. These will be raised to 64 and 69, respectively, in 2026. By 2030, they will go up to 65 and 70.

The retirement age increase to 64 applies to those born on or after July 1, 1963, and the re-employment age increase to 69 applies to those born on or after July 1, 1958.

Passed in January 2025, the Act will make it unlawful for employment decisions to be made on the grounds of age, nationality, sex, marital status, pregnancy, caregiving responsibilities, race, religion, language, disability and mental health condition.

This covers areas such as hiring, performance appraisals, training opportunities and dismissal decisions.

The law, slated to be implemented in 2026 or 2027, will also require employers to put in place proper grievance handling procedures.

These guidelines cover employment decisions such as hiring, promotions, appraisals and dismissals. They are not legally binding but employers are expected to follow them.

These guidelines lay out how older employees should be treated when re-employed, including what is fair when it comes to job scope, contracts and pay.

In addition, it was announced in February 2025 that a Tripartite Workgroup on Senior Employment will be formed to help older employees stay productive and employed.

More about re-employment

Under the law, employers must offer re-employment to "eligible" workers when they hit retirement age.

The contract should be for at least one year and renewable every year up to the maximum re-employment age. (Anyone, of course, is free to retire any time they wish.)

To be eligible, a worker must:

The law recognises that employers are not always able to re-employ an eligible employee.

If a suitable role can't be found despite "making reasonable attempts", the employer must either transfer the re-employment obligation to another employer (with the worker's agreement), or offer an employment assistance payment (EAP).

MOM's website states that the EAP should be "offered only after a thorough review, as a last resort".

The one-off payment is equivalent to 3.5 months' salary, subject to a minimum of $6,250 and maximum of $14,750. A lower EAP -- two months' salary, subject to a minimum of $4,000 and a maximum of $8,500 -- could be offered to those re-employed for at least 30 months after reaching the retirement age.

MOM says that since re-employment was introduced in 2012, the re-employment rate has remained high. It adds that a very low proportion of employers transfer their re-employment obligations to another company.

Do seniors want to work?

But with all this protection in place, do seniors want to keep working beyond retirement age in the first place?

In an NTUC survey of about 800 workers aged 55 and above, more than half -- 58 per cent -- said they did.

Many hope to stay on in their current roles, says an NTUC spokesman of the 2023 survey. They also want to remain meaningfully engaged in a fair and supportive work environment.

"However, some may face obstacles in getting jobs, such as age discrimination and difficulties finding suitable job roles that fit their work-life aspirations," he adds.

Myths about older workers

Despite the legal provisions for older employees keen to stay in the workforce, they can still be stymied by roadblocks, as Mr Ng discovered.

Age discrimination was consistently a top complaint about bias received by the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) from 2021 to 2023, says NTUC. Tafep is an agency that promotes fair, inclusive and progressive workplace practices.

A major misconception about older staff is that they are less productive, says the NTUC spokesman. In reality, many bring valuable skills, years of experience and deep knowledge of their industries.

Research, including studies by the Harvard Business Review, has found that multi-generational teams can be highly productive and dynamic, provided managers know how to tap everyone's strengths. Older employees often contribute insights and perspectives that come only with time, says NTUC.

Another common myth is that mature workers struggle with technology. While they may take a little longer to learn, many are eager to upskill and use new digital tools, especially when supported. NTUC says its company training committees have helped many seniors pick up tech skills and stay relevant.

Age and salary

Can your boss cut your salary just because you hit 60?

Not any more.

In the past, Singapore laws allowed employers to reduce a worker's salary by up to 10 per cent at age 60, subject to conditions. This was to get around seniority-based pay systems where salaries rose mainly with age and years of service, not performance. Most companies, though, didn't take advantage of this rule. It was officially scrapped in 2017.

The NTUC spokesman says that any pay change needs a worker's consent, and young and old employees should be paid fairly based on performance and productivity.

"Wages should reflect the value of the work, not the workers' age," the spokesman says. "Workers who are more senior may deserve higher wages due to their job scope, experience, networks and skills. Wage reductions based on age alone could be seen as age discrimination."

The Manpower Ministry agrees.

"Older workers should receive a fair compensation in line with their contributions and not be penalised for reaching a certain age," notes the MOM spokesperson.

At the same time, there should be enough flexibility for workers and their employers to adjust wages to reflect business performance, economic conditions and changes in workers' work preferences and performance, says the ministry.

"Any wage adjustment should be based on reasonable factors such as productivity, duties and responsibilities," says the MOM spokesperson.

In reality, MOM says, "nearly all" who have been re-employed in the same job did not experience a cut in basic wage.

Disputes over re-employment terms and conditions have remained low, at around 15 cases each year between 2020 and 2024.

As for year-end rewards, NTUC's view is that re-employed staff are part of the team and should be recognised for good work through bonuses, increments or other incentives, to keep them motivated.

Through the employers' lens

Re-employment is an important feature of Singapore's labour landscape, says Mr Hao Shuo, the chief executive officer of the SNEF.

Re-employment helps older workers stay in the workforce while giving businesses the flexibility to manage manpower, especially when times are rough.

He says employers generally recognise that mature workers play an important role as they often set an example with their strong work ethic, contribute deep institutional knowledge and experience, and serve as mentors to younger teammates.

He points out that complaints about discrimination have been falling.

According to MOM's Fair Employment Practices 2023 report, 6 per cent of employees experienced discrimination at work in 2023. This was down from 8.2 per cent in 2022 and 8.5 per cent in 2021, and much lower than the 24 per cent in 2018.

The proportion of job seekers who faced discrimination also dropped, standing at 23.4 per cent in 2023 compared with 23.8 per cent in 2022, 25.8 per cent in 2021, and 42.7 per cent in 2018.

Workplace fairness should be built on a meritocratic system that recognises and rewards all employees based on performance regardless of age, Mr Hao says.

Fair and meaningful re-employment must work both ways, he notes. Some displacement of workers is inevitable during business renewal and reorganisation. Adding more employment obligations risks hurting competitiveness and isn't a sustainable solution, he says.

The "vast majority" of employers do not adversely adjust an older worker's employment terms because of age. Most re-employ their older employees on their existing employment contracts, says Mr Hao.

"However, if the employee's performance or productivity has changed or is expected to change because of a change in role, the employment terms should reflect the change," he notes.

"Adjustments to wages or benefits arising from a change or a reduction in job scope (workload or time) should not be mischaracterised as discriminatory," he says. "We shouldn't immediately jump to the conclusion."

Misunderstandings often happen when changes to salary, duties or work arrangements are not clearly explained.

The SNEF encourages employers to be open and consistent when discussing re-employment terms. Conversations should start at least six months before retirement.

Workplace fairness

Discrimination, whether it's obvious or more under-the-radar, still happens. The good news? There are ways to speak up and get help.

Workers can approach Tafep, which will report any discriminatory practices to MOM for possible enforcement action. There is also the Tripartite Alliance for Dispute Management (TADM).

The NTUC spokesman says union members in non-unionised companies can approach TADM@NTUC, and those in unionised companies can contact their respective unions. Non-members can approach TADM for help or contact NTUC to sign up as a union member.

MOM notes that Singapore is an ageing society and supporting the employment of senior workers is critical.

The MOM spokesman shares an example: A job seeker applies to be a facilitator for children's workshops. During the interview, the employer asks her age. After she replies, they tell her she isn't suitable and they prefer someone younger and "more energetic".

"This could amount to discrimination under the Workplace Fairness Act," the spokesperson says.

Of course, laws and policies can only go so far. Employees need to help themselves, too.

Mr Yum, the career coach at e21, says mature job seekers must show how their experience and skills are relevant to what employers need. He also encourages workers to stay open to learning. Picking up new digital skills or getting certified can go a long way in showing adaptability.

At the end of the day, supporting older employees is a shared responsibility for both employees and employers, and everyone should care about the fair treatment of older workers.

If there's one certainty we all share in life, it's ageing. The laws we make today will shape how you are treated tomorrow.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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