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19/02/2009 09:07:53
Re: Working after retirement age

Question 1:
If a person who is over the retirement age works without a formal contract of employment and her salary is above rm1500, what should be the notice of termination? Employer insist that it is 3 months but she does not agree.

For further information, she is currently working in a Sdn Bhd which has been converted from a sole proprietorship for not more than 5 years now for the same employer. She has signed contract of employment before conversion but was not given a new contract of employment after the conversion.

Question 2
Can the said person quits giving 24 hours notice because of old age related illness?

Question 3
Is gratuity payment at the discretion of the employer?

Pls advice. Thank you.
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KL Siew
19/02/2009 09:53:19
1. If no retirement age is stated in the contract of service then there is no retirement at whatever age. He or she can continue working as long as he likes or capable of working. When there is no notice period stated in the contract of service, then it is up to the parties to decide when the employee concerned is not covered by the EA.

2. I don't know about that. Better discuss it with the employer or get a medical report from a doctor;

3. Yes it is at the discretion of the employer.
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19/02/2009 13:18:11
Thank you for the answer. Referring to question no. 2, is the employment contract signed during the company was still a sole proprietorship valid after the company converted to sdn bhd? Is the Sdn Bhd suppose to issue new contract of employment to the employees since upon conversion, the sole proprietorship is deregistered?

And, if the employee has worked over 30 years while the business still a sole prop and then after conversion to sdn bhd, meaning its a new company, the employer can choose to ignore the past 30 years of service of the employee in determining the retirement benefit for her?

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KL Siew
19/02/2009 13:53:05
Actually, there is no law pertaining to retirement benefit. Please state clearly what actually is going on, whether the employer is going to terminate her service or is she thinking of resigning because of old age? How much is her salary? When was that Sdn Bhd established?
That info will be helpful to me.
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19/02/2009 17:11:15
Her contract of employment is under the old company's name (the sole prop business name). New company did not issue her a contract of employment. Can she ignore the old contract of employment since the sole prob business name has already been de-registered?

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KL Siew
19/02/2009 17:24:33
I don't think I can give an accurate answer. Advise her to go to the nearby Labour Office and seek some clarifications there.
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