WHILE other companies are still digesting the new guidelines on re-employing older workers, Nestle is more than a step ahead.

Not only does the Swiss food giant give all its retiring workers a lump-sum payment, it also allows them to continue working after pocketing the money.

The amount handed out depends on the worker's length of service and last drawn pay. The worker does not make any contributions to the retirement fund.

For the average worker who has worked 30 years, the amount can easily exceed $100,000, said Nestle's spokesman James Wong.

Explaining the rationale for the fund, Mr Wong said it is an additional benefit to encourage long service. 'The whole idea is to reward employees for their dedication and loyalty to the company.'

The retirement pension, as Nestle calls it, is a longstanding practice implemented at its offices worldwide.

So far, only one worker here has opted to continue working after retirement. Now 68, Mr Joseph Tan, who reached the company's retirement age eight years ago, continues in his old job as a trade relations officer.

His salary has not been cut, he still gets bonuses and his medical benefits remain intact. Only his wage increments are capped, said Mr Wong.

'The (re-employment) guidelines are not an issue to Nestle. We are already doing a lot more,' he added.

This article was first published in The Straits Times.