Retired 60 years beginning 2013

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Minimum Retirement Law private workers presented in the House
/> KUALA LUMPUR: The age of retirement minimum private sector employees extended up to 60 years with effect from January next year compared to 55 years now.

According to the Bill presented in 2012 Minimum Retirement for first reading in Parliament yesterday, the employer can not force the employee retires before the age of 60 years and a fine up to RM10, 000 if you do so.

However, the employee may elect to retire early through the contract agreement or collective agreement (CA) with the employer.

Human Resources Minister Datuk Dr S. Subramaniam, when presenting the bill also says that when the future force, all contract retirement age less than 60 years will be void. ” br />
“The retirement age in contracts made before, during or after the effective date of this act which is lower than the minimum retirement age of 60 years, canceled and replaced with a new retirement age. Any terms in the contract services relation to the retirement age is also void if contrary to the Act, “he said.

The Act also allows employees who retired earlier complained in writing to the Director General of Labour within 60 days from the date of retirement.

If the Director is satisfied the complaint is substantiated, the instructions may be issued to employers to return employees to work and pay back the original start date of retired pay arrears to the date of reinstatement.
As an alternative, the Director General may direct the employer pay compensation to employees is not more of the total salary to be received from the date the retired employee until the date of the statutory retirement age. />
Meanwhile, the bill does not apply to workers employed on a permanent, temporary or contract and receive the emoluments of the Federal government, state governments, statutory bodies and local authorities.

It also does not apply to employees on probation, non-Malaysians, domestic service, the employees who work less than 70 percent of normal working hours full-time employees and students who work on contract for a while.

Employees who retire at age 55 years or more before the enforcement of this bill and go back to work after that is not subject to act.

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