Those companies which cannot find a way to re-employ their workers at retirement age should offer them a severance pay-out of between $4,500 and $10,000. -- PHOTO: ZAOBAO
THOSE companies which cannot find a way to re-employ their workers at retirement age should offer them a severance pay-out of between $4,500 and $10,000.
Known as the Employment Assistance Payment (EAP), it should be a last resort for employers who cannot offer re-employment despite their best efforts.
The sum will tide workers through a period of job search or training.
The EAP range has been set to strike a balance between being so low that it becomes an easy alternative for employers, and so high that it is an onerous burden, said Manpower Minister Gan Kim Yong in Parliament yesterday.
It is a key feature of the tripartite guidelines on re-employment, which were also released yesterday.
The guidelines will form the core of the law to be passed by 2012 for the re-employment of workers up to age 65, and later, up to 67.
Read the full story in Friday's edition of The Straits Times.
rchang@sph.com.sg
