8 Things To Know About The Minimum Retirement Age In Malaysia

• Published date: 12 January 2021
• Subject Matter: Employment and HR, Retirement, Superannuation & Pensions
• Law Firm: MahWengKwai & Associates
• Author: John Chan

1. Minimum Retirement Age Act 2012

The minimum retirement age for employees in Malaysia is regulated by the Minimum Retirement Age Act 2012 which came into force on 1 July 2013.

2. Minimum retirement age is 60

The minimum retirement age of an employee shall be upon the employee reaching the age of 60 years, pursuant to Section 4(1) of the Minimum Retirement Age Act 2012.

3. Minimum Retirement Age Act 2012 does not apply to all employees

The Minimum Retirement Age Act 2012 does not apply to the following types of employees:

• persons who are employed on a permanent, temporary or contractual basis and are paid emoluments by the Federal Government, State Government, statutory body or local authorities;
• persons who work on a probationary term;
• apprentices who are employed under apprenticeship contracts;
• foreign/non-citizen employees;
• domestic servants;
• persons who are employed in any employment with average hours of work not exceeding 70% of the normal hours of work of a full-time employee;
• students who are employed under any contract for a temporary term of employment but do not include employees on study leave and employees who study on a part-time basis;
• persons who are employed on a fixed-term contract of service inclusive of any extension, of not more than 24 months; and
• persons who, before the date of coming into operation of the Minimum Retirement Age Act 2012, have retired at the age of 55 years or above and subsequently are re-employed after they have retired.

4. It is an offence to retire an employee before the employee attains the age of 60

An employer cannot prematurely retire an employee before the employee attains the age of 60. Under Section 5(2) of the Minimum Retirement Age Act 2012, an employer who contravenes this commits an offence and shall be liable to a fine of not more than RM10,000 upon conviction.

5. A prematurely retired employee may complain to the Director General of Labour or file representation of unfair dismissal

An employee who has been prematurely retired by his/her employer may, within 60 days from the date of his/her premature retirement:

• Complain in writing to the Director General of Labour; or
• File a representation of unfair dismissal under Section 20 of the Industrial Relations Act 1967.

If the employee complains to the Director General, he/she shall not file a representation of unfair dismissal under Section 20 of the Industrial Relations Act 1967 until his/her complaint to the Director General has been resolved...