Employment Law

New Minimum Retirement Age of 60 Years Old in the Private Sector


With the coming into force of the Minimum Retirement Age Act, the retirement age for employees in the private sector will be increased from the existing age of 55 to 60 commencing from 1st July 2013. However, such minimum retirement age shall not have any implication on those contracts whereby the employees are granted the option to retire early at age 55.

Those employers who wish to be exempted from the implementation of the minimum retirement age for their workers must submit their application for exemption to the Ministry of Human Resource before or on 31 December 2013. Nonetheless, the employers must provide strong and valid reasons to support their application.

Industrial Relations Act 1967

Industrial Relations Act 1967 is an Act to regulate the relationship between the employers and workmen and their trade union. It deals with differences or disputes arising from the employer-employee relationship. It establishes the principles on which these relations are founded, namely:-

(i)                 trade unionism – the principle that employees and employers have the right to organize  themselves in trade unions in order to protect and promote their respective interests;

(ii)               union recognition – the principle that employee unions must be registered with the relevant authority and being recognized as the proper representatives of the employees.

(iii)             collective bargaining – the principle that employee unions and the employers may negotiate on periodic basis, the terms and conditions of employment. Collective agreement if achieved may be binding upon the parties.

(iv)             dispute resolution – the principle recognizes variety of ways available to employers and the unions to peacefully resolve differences and disputes between them.