SINGAPORE: A man was dismissed about three months after he turned 63, Singapore's statutory retirement age at the time, with his company claiming that it was retiring him on a lawful basis.
The former area manager took the company to the Employment Claims Tribunals, seeking S$26,350 (US$20,363) comprising S$11,600 in damages in wrongful dismissal and an employment assistance payment of S$14,750.
The company disputed both claims, saying that its termination was lawful since it was retiring the man, and that no notice or salary in lieu of notice was required in these circumstances.
It also claimed that it was not required to provide employment assistance payment, since it had offered re-employment to the man but he rejected it.
In a judgment released on Monday (Jul 13), Tribunal Magistrate Joel Tan ruled in the retiree's favour, awarding him the full sum of S$26,350 he had sought in his claim.
Mr Tan said that a company wishing to terminate an employment contract after an employee attains retirement age must provide notice or salary in lieu as stated in the contract and the Employment Act.
The re-employment exercise conducted by the company for the claimant was lacking, since the company did not reasonably engage or consult the claimant on his re-employment, Mr Tan found.
The re-employment offer made was also a six-month contract, but the Retirement and Re-employment Act generally requires a one-year re-employment term unless both parties agree otherwise.
The claimant and...
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