From July this year, older workers will be entitled to re-employment until the age of 67, instead of 65.
This change to the Retirement and Re-employment Act, passed in Parliament yesterday, applies to locals who turn 65 on or after July 1, who are medically fit and have satisfactory work performance.
Employers who cannot find a suitable position to re-employ eligible workers can transfer them to a subsidiary or another company, if both the new company and the worker agree. Otherwise, employees must be given a one-off payment.
A provision for employers to cut employees' wages at age 60 will also be removed. A total of 17 MPs rose to speak on the changes.
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