BOSSES should retain all staff who are fit and have put up at least a satisfactory performance, when it comes to the re-employment of older workers.

That's the suggestion of the Tripartite Implementation Workgroup, which issued an 'advisory' yesterday to help companies practise re-employment ahead of legislation by 2012.

The Workgroup was set up by the Tripartite Committee on Employability of Older Workers to spotlight re-employment issues - and to help businesses prepare early.

'Employers should seek to offer re-employment to the majority of their older workers,' the advisory says. 'As a good practice, employers should offer to retain all workers who are medically fit to continue working beyond the age of 62 and whose past performance is assessed to be satisfactory or above.'

But bosses do not have to rehire workers for the same job; they could be redeployed to other jobs or put on flexible work arrangements, such as part-time, job-sharing and other appropriate schemes.

The advisory calls for employers to move away from seniority-based pay for re-employed workers. Wages should reflect the job and performance.

The advisory specifically suggests that wages be 'adjusted down to the level of a younger employee with the requisite experience and competence', if older workers are rehired for the same job as before.

The mid-point of the salary range of the job could serve as a reference in this case, it says.

'Where redeployment in another job is offered, the new wage should take into account the value of the job, the employee's relevant experience and other attributes,' the advisory says.

Regarding medical perks, it prescribes co-payment, appropriate caps and payment of MediShield premiums by bosses in lieu of providing in-patient medical benefits.

The advisory also covers pre-retirement planning and re-employment consultation.

On the length of re-employment, it suggests a period of at least one year, renewable up to age 65, as long as the worker is fit and performs at least satisfactorily.

'Re-employment is a new concept for many employers,' says Alexander Melchers, chairman of the Tripartite Implementation Workgroup and a council member of the Singapore National Employers' Federation.

NTUC director of industrial relations and Workgroup member Cham Hui Fong added: 'Both employers and workers need to change their mindset on employment beyond 62. Employers should regard these long-serving employees as an integral part of their value chain and recognise their contributions. Workers must be adaptable and be prepared to accept that re-employment may mean doing a different job, with a different pay.'