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29/11/2014 19:15:02
Re: Reemployment after retirement and subsequently retrenched

Employees reached their retirement age but were re-employed by same employer (some with 7 days cooling of period and some without) on fixed term contracts of one year, renewed on a yearly basis. After a few years, the employer decides to retrench them due to redundancy.

Assuming these employees are covered by the Employment Act 1955 and the Employment (Termination and Lay-Off Benefits) Regulations 1980, how do we calculate the years of service? Would it commence from the commencement of the fixed term contract after their retirement age? Or do we have to also include the period of employment before the employees reached their retirement age?

Thank you.
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KL Siew
30/11/2014 08:32:05
I think you case needs to be looked into in greater details. It would be better that you consult the Labour Department. However, in my opinion, if there is a retirement clause in the last contract of service when the staff retired and he was subsequently reemployed on yearly contract, I would think his service would start from the new date. If there was no retirement clause, then there might be a case to look into. Anyway, get official ruling from the Labour Department.
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