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Private sector needs to enforce new retirement age

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A. Balasubramaniam, deputy secretary general of the Malaysian Trades Union Congress (MTUC), wants the country’s Labour Department to enforce the new retirement age of 60 within the private sector.

Speaking to Bernama, Balasubramaniam said MTUC received several complaints about companies who are flouting the new rule, which kicked in on July 1, 2013.

“We have been informed that errant companies were still using the old 55-year retirement age clause in the contracts for new employees.”

He added the Labour Department could enforce Section 65 of the Employment Ordinance 1955, which grants the Employment Director General the power to enter any place of employment without previous notice  “to make any inquiry which he considers necessary in relation to any matter within the provisions of this Act”.

He added a lot of companies have also failed to comply with the new minimum wage policy, and reiterated MTUC’s offer to help the Labour Department enforce the law.

In April, Human Resources reported more than 60,000 Malaysian workers were not being paid the minimum wage, despite employers having been granted an extension on the regulation’s implementation date.

A month prior to that report, the Malaysian Human Resources Ministry said the government will “no longer compromise with errant employers”, adding errant employers will face stiff fines if they continue to ignore the policy.

Image: Shutterstock 

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