Tribunal orders $26,350 payout after employer skips notice, re-employment duties
A Singapore employer has been ordered to pay a former area manager $26,350 after a tribunal found it had wrongfully dismissed him and failed to meet its re-employment obligations under the Retirement and Re-employment Act 1993 (RRA).
The Employment Claims Tribunal (ECT) ruled that an employer has no power, whether under contract, statute, or general law, to terminate an employee immediately upon reaching the statutory retirement age without providing notice or salary in lieu thereof.
Tribunal Magistrate Joel Tan allowed both of the claimant's claims in full: $11,600 for wrongful dismissal and $14,750 as an employment assistance payment (EAP).
The claimant, an area manager, turned 63, the statutory retirement age at the material time, in March 2025. His employer made no re-employment offer before or around that date, and he continued working as normal.
It was only on June 8, 2025, after the claimant himself raised the issue by email, that the employer initiated re-employment discussions.
Two days later, it offered him a position as a training executive at a reduced monthly salary of $4,000, down from his gross wages of $6,428, a cut of approximately 38%. The contract on offer was for six months, not the one-year minimum prescribed by the RRA.
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