CNA Explains: Why did a senior worker who was made to retire win his claim against his company?

A senior worker in Singapore successfully challenged his employer, winning S$26,350 in damages after being dismissed shortly after reaching retirement age. The court's judgment, made public on July 13, found the company had wrongfully dismissed the man and failed to fulfill its statutory re-employment obligations. The employer had incorrectly treated the retirement age as a natural end to the employment contract, arguing no notice or severance pay was necessary. Lawyers clarified that, unlike in cases of misconduct, an employment contract does not automatically terminate upon reaching retirement age. Companies must adhere to notice periods or provide equivalent pay if they wish to end a contract. Furthermore, the ruling highlighted that employers have specific re-employment duties. If no offer is made and the worker continues in their role, they are considered re-employed under existing terms. The company's offered re-employment contract was also found to be deficient, being only for six months instead of the legally required minimum of one year without mutual agreement, and the company failed to provide a required employment assistance payment.

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The employer was 'a bit misguided' about its rights, treating retirement age as a guillotine on the employment contract.