SINODA Shipping Agency has 19 workers. Of these, about one-quarter are aged 55 or above.

Like many small companies here, it has yet to figure out how to re-employ them when they reach the retirement age of 62.

But managing director Ashok Batura is not losing sleep because the draft guidelines issued yesterday for the re-employment of older workers are hardly daunting.

The 10-point advisory was drawn up by a 13-member group of employer, union and government representatives, and provides a framework for companies to give feedback. Their views will be taken into account when it puts out the guidelines next year.

The guidelines will be the basis for drawing up the re-employment law, to be introduced by 2012.

Yesterday, five companies interviewed by The Straits Times were upbeat about the draft guidelines, with most saying they already have some measures in place.

'We've been doing some of them on an ad hoc basis. Recently, we've formalised them,' said Mr Raymund Chua, human resource manager of Hamilton Sundstrand Pacific Aerospace.

Broadly, the advisory urges firms to identify who to rehire, prepare workers for retirement a year in advance,give renewable contractsofatleast a year and offer flexible work arrangements.

Captain Batura is especially pleased with the suggestion that the salary of a re-employed worker can be reduced to that of a younger employee who fits the job requirements. The pay could be pegged to the mid-point of the job's salary range.

'That's good for us. With less pay, you are getting a worker just as experienced,' he said.

Other suggestions include giving workers a detailed job offer three months before they turn 62 and not requiring employers to pay retrenchment benefits.

Panel chairman Alexander Melchers urged firms to take steps soon as 'this is not a process that can be accomplished overnight'.

Of the 1,000 unionised companies, 433 already have re-employment policies in place.

Some companies, like global bank ABN Amro, have gone beyond the suggested measures.

It offers re-employed workers the same job with the same pay and medical benefits.

Said its human resource director, MsMolly Yeo: 'When you cut back, they may feel they shouldn't be working so hard.

'Also, what kind of message are you sending to the new hires - that this is what we do to you when you reach a certain age?'