Date
of coming into operation of Minimum Retirement Age Act 2012 i.e. 1 July 2013
based on the gazette notification PU (B) 422 dated 26 December 2012 on all
employers in Malaysia who employ employees regardless of the amount of salary
paid, except for the categories of employees as stipulated in the Schedule to
section 2 of the Act.
The
details of the Act can be downloaded from Ministry of Human Resource website http://www.mohr.gov.my.
Section
4 of the Minimum Retirement Age Act 2012 (Act 753) provided that the minimum
retirement age of an employee shall be upon the employee attaining the age
of sixty (60) years.
Employer
may at any time fix a higher retirement age than 60 years for their employees.
OPTIONAL
RETIREMENT - Section 6 of Act 753 stated
that early Retirement Age before the minimum retirement age can be fixed by the
employer with the consent of the employee as agreed in the contract of service
or
collective agreement. An employee may choose to retire when he attains the said
optional retirement age.
INVALIDITY
OF TERMS ON RETIREMENT AGE IN THE EXISTING CONTRACT OF SERVICE AND COLLECTIVE
AGREEMENT - Section 7 of Act 753 stated
that employers need to amend the retirement age in the contract of service or
collective agreement to the minimum retirement age of 60 years if the existing
retirement age is lower.
NON‐APPLICATION
OF THE ACT- The minimum retirement
age does not apply to employees who are listed in the Schedule to
section 2 of Act 753 as follows:
(a) a
person who is employed on a permanent, temporary or contractual basis and is
paid emoluments by the Federal Government, the Government of any State, any
statutory body or any local authorities;
(b) a
person who works on a probationary contract;
(c) an
apprentice who is employed under an apprenticeship contract;
(d) a
non‐citizen employee;
(e)
domestic servant;
(f) a
person who is employed in any employment with average hours of work not
exceeding seventy percent of the normal hours of work of a
full‐time
employee;
(g) a
student who is employed in any contract for a temporary term of employment but
does not include employee on study leave and
employee
studying on part‐time basis;
(h) a
person who is employed on a fixed term contract of service inclusive of any
extension, of not more than twenty‐four months; and;
(i) a
person who before 1 July 2013 has retired at the age of fifty‐five years or
more and is subsequently re‐employed after his has retired.
Application
for deferment of the implementation of MRA shall be submitted (refer to
attachment for list of documents for submission) and addressed to the
following before 30 April 2013 as
follows:
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Setiausaha
Bahagian Dasar Kementerian Sumber Manusia Aras 7, Block D3, Kompleks D Pusat Pentadbiran Kerajaan Persekutuan 62530 PUTRAJAYA |
Telephone
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03-88865158
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03-88711331
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Email
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For more information, pls refer to the Ministry of Human
Resource website at www.mohr.gov.my or
download http://www.mohr.gov.my/docz/GARISPANDUAN_UMURSARA_FEB2013.pdf
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