Amendment of Schedule on Minimum Retirement Age Order 2016

Amendment of Schedule on Minimum Retirement Age Order 2016

We just got the latest news that the Minister of Human Resources has recently introduced the Minimum Retirement Age (Amendment of Schedule) Order 2016 on 23rd September 2016.

At MyFreelys Academy, we took the liberty to provide a copy which you can download it for your further reference from here: https://drive.google.com/open?id=0B3NDEt17Kn_aRjUweFBOeXRkNEU

HR Practitioners are advised to take note of the following changes and based on the new Amendment, you will notice a new sub-paragraph [known as paragraph (ha)] as below:-

“(ha) – a person who is employed on a fixed term contract of service, inclusive of any extension, of more than twenty four months but not more than sixty months with basic wages of twenty thousand ringgit per month and above; and”

However, this is only applicable to employee employed under a fixed term contract. You may refer to the example shown here:-

Fixed Term Contracts Tenure (Under the new amendment):

  1. Less than 24 months
    1. Not applicable where Employer can retire the Employee before the minimum retirement age
  2. More than 24 months but not exceeding 60 months
    1. Employee earning less than RM 20,000 --> This is applicable of which the Employer cannot retire the Employee until he reaches the minimum retirement age.
    2. Employee earning more than RM 20,000 and above --> Not applicable where Employer can retire the Employee before the minimum retirement age
  3. More than 60 months
    1. This is applicable of which the Employer cannot retire the Employee until he reaches the minimum retirement age

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