Minimum Retirement Age Act is now in force

Today, 1st July 2013 is the date the Minimum Retirement Age Act comes into operation. Here are some important points that you may need to know about the Act.

  1. The minimum retirement age stipulated under the Act is 60 years. It will replace any other contractual retirement age within each Company. The Ministry may from time to time amend the minimum retirement age.
  2. The Company is allowed to have in place an optional retirement age. The optional retirement age can be set by the Company but only employees are allowed to opt to retire early. Employers are not allowed to retire an employee at the optional retirement age.
  3. The Minimum Retirement Age Act is under the purview of the Labour Department. As such, any complaints, etc will be through the Jabatan Tenaga Kerja (JTK) and not the Jabatan Perhubungan Perusahaan (JPP).
  4. If an employee has filed for an action of unlawful retirement under s.8 of the Act with the JTK and files for a s.20 IRA claim, the JPP will not be allowed to listen to this case until the case has been resolved by the JTK.
  5. If the employee files his claim at the JPP first, then the JTK is barred from handling this case.
  6. The Act will not cover all employees. There is a Schedule for exclusion. Please contact me for further information.
  7. Some employers have been grated deferment in which case the Act will only come into force with effect from 1st January 2014.
  8. Employers can still apply for an exemption with the Director General of Labour if they feel that a particular class of employees should be retired earlier than 60 years.