*MINIMUM RETIREMENT AGE ACT 2012

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.

Non-application

This Act does not apply to the person specified in the

Schedule.

The Minister may, by order published in the Gazette, amend the Schedule.

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Interpretation

in respect of Peninsular Malaysia, the Director General of

Labour appointed under subsection 3(1) of the Employment

Act 1955 [Act 265];

in respect of Sabah, the Director of Labour appointed under subsection 3(1)

of the

Sabah

Labour

Ordinance

[Sabah Cap 67]; and

in respect of Sarawak, the Director of Labour appointed under subsection 3(1) of the Sarawak Labour Ordinance

[Sarawak Cap 76];

“contract of service” means any agreement, whether oral or in writing, and whether express or implied, whereby one person agrees to employ another person as an employee and that person agrees to serve his employer as an employee;

“employer” means any person who has entered into a contract of service to employ another person as an employee and includes an agent, a manager or factor of the first-mentioned person;

“Minister” means the Minister charged with the responsility for human resources;

“labour officer” means the officer appointed under subsection 3(2)

of the Employment Act 1955, subsection 3(1A) of the Sabah Labour

Ordinance or subsection 3(1A) of the Sarawak Labour Ordinance;

“employee” means any person who has entered into, and works under, a contract of service with an employer irrespective of his wages but does not include the person specified in the Schedule;

“collective agreement” has the same meaning assigned to it in section 2 of the Industrial Relations Act 1967 [Act 177];

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“retirement” means termination of a contract of service of an employee on the ground of age;

“premature retirement” means a retirement not in accordance with section 5;

“minimum retirement age” means the minimum retirement age provided under subsection 4(1) and where the Minister prescribes a higher minimum retirement age under subsection 4(2), such higher minimum retirement age.

The Minister may, by notification in the Gazette, prescribe a minimum retirement age higher than the minimum retirement age provided under subsection (1).

When the Minister prescribes a higher minimum retirement age under subsection (2), the prescribed minimum retirement age shall supersede the minimum retirement age provided under subsection (1).

Premature retirement

An employer shall not prematurely retire an employee before the employee attains the minimum retirement age.

An employer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to the fine not exceeding ten thousand ringgit.

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A premature retirement shall not include an optional retirement under section 6 and a termination of a contract of service for any reason other than on the ground of age.

Optinal retirement

Any retirement age in a contract of service or collective agreement made before, on or after the date of coming into operation of this Act which is less than the minimum retirement age provided under this Act shall be deemend to be void and substituted with the minimum retirement age provided under this Act.

Any term in a contract of service or collective agreement relating to retirement age shall be void if it excludes or limits the operation of any provision of this Act.

An employee who has been prematurely retired by his employer has, whithin sixty days from the date of the retirement, the option to complain in writing to the Director General.

If an employee opts to make a complaint to the Director

General under subsection (1), the employee shall not make a representation under section 20 of the Industrial Relations Act 1967

until his complaint to the Director General under this section has been resolved.

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If an employee has made a representation under section 20 of the Industrial Relations Act 1967 and also made a complaint under subsection (1), the Director General shall not conduct an inquiry on the complaint made by the employee.

Subject to subsection (3), the Director General may conduct an inquiry, in the manner prescribed by the Minister, to determine whether there is prima facie evidence that an employee has been prematurely retired by his employer.

Upon an inquiry under subsection (4), if the Director

General—

Notwithstanding subsection (2) and any limitation period provided under subsection 20(1A) of the Industrial Relations

Act 1967, an employee may make a representation under section 20

of the Industrial Relations Act 1967 if the Director General has dismissed his complaint under paragraph (5)(a), and such representation shall be made within thirty days after the dismissal of the complaint under paragraph (5)(a) is communicated to the employee.

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If an employee has made a representation under section 20 of the Industrial Relations Act 1967 after his complaint has been dismissed under paragraph (5)(a), the employee is not entitled to appeal under section 10 of this Act, against the dismissal of his complaint by the Director General.

If the Director General has made a representation under paragraph (5)(b), the employee is not entitled to any other remedy for a dismissal without just cause and excuse under the Industrial

Relations Act 1967.

For the purpose of this section, “wages”—

In any inquiry under subsection 8(4), the Director General may, if the thinks fit, refer any question of law for the decision of a

Judge of the High Court and if the Director General does so he shall make his decision in the inquiry in conformity with the decision of the Judge of the High Court.

An appeal on any decision of a Judge of the High Court under subsection (1) shall lie to the Court of Appeal.

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Appeal

Subject to any rules made under section 4 of the Subordinate

Court Rules Act 1955 [Act 55], the procedure in an appeal to the

High Court shall be the procedure in a civil appeal from a Sessions

Court with such modifications as the circumstances may require.

Non-compliance with direction of Director General

If an employer has been convicted of an offence under subsection (1), the court before which the employer has been convicted may order the employer to pay to the employee the amount directed by the Director General to be paid under paragraph 8(5)(b).

If an employer fails to comply with an order made under subsection (2), the court may, on the application of an employee, issue a warrant to levy the employer’s property for the amount ordered to be paid under subsection (2) in the following manner:

to investigate into any offence under this Act; and

to enforce any provision of this Act.

Power to require attendance of persons acquainted with case

If any person refuses or fails to attend as so required, the

Director General may report such refusal or failure to a Magistrate who shall issue a summons to secure the attendance of such person as may be required by the order made under subsection (1).

The Director General may examine orally a person supposed to be acquainted with the facts and circumstances of the case under his investigation.

A person shall be bound to answer all questions put to him relating to the case under investigation by the Director General but the person may refuse to answer any question which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

The

Director

General examining a person under subsection (3) shall first inform the person of the provisions of subsections (4) and (5).

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A statement made by any person under this section shall be reduced into writing and signed by the person making the statement or affixed with his thumbprint after the statement has been read to him in the language in which he made it and after he has been given an opportunity to make any correction he may wish.

Power to require production of document

require any person acquainted with the facts and circumstances of the case to produce any contract of service or other document relating to the employment of an employee who makes a complaint under subsection 8(1);

make copies of any contract of service or other document relating to employement produced under paragraph (a); and

take or remove any relevant document.

If the Director General is satisfied that the retaining of any document is no longer necessary, the Director General may return the document to the person who has provided the document as soon as practicable.

A labour officer shall not exercise any of the powers of the

Director General under this Act unless he is in possession of an authority card signed by the Director General authorizing him to exercise such powers.

Prosecution

An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and if the amount specified in the offer is not paid within the time specified in the offer or withnin such extended period as the Director General may grant, the prosecution for the offence may be instituted at any time after that against the employer to whom the offer was made.

If an offence has been compounded under subsection (1), no prosecution shall be instituted in respect of the offence against the employer to whom the offer to compound was made.

Exemption