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28/05/2010 14:39:11
Re: Retirement and New Contract Terms

I worked in this company for 6 years plus and was retired at age 55 with a 6 week’s notice of retirement. At the same time, I was offered a new fixed-term contract for 1 year which I have already signed .

My salary is less than RM1500 and my previous contract has no retirement clause. On reaching retirement, I was lay-off for 1 week without payment by my employer. After 1 week, I reported for work under the new contract. I found out that the terms in the new contract were inferior than my previous contract such as annual leaves, sick leaves and no paid sick leave on rest day and public holiday.

Based on the above my questions are:

1) Can an employer retired an employee at age 55 with a notice of retirement?

2) Can an employer retired an employee and offer a new contract with terms inferior than previous contract?

3) What is the reason behind that my employer lay-off me for 1 week without pay then re-employ me with a new contract.

4) Is the employer required to pay termination benefits for my retirement case?

Please advise. Thank you.
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KL Siew
29/05/2010 20:52:21
To cut the story short, if there is no retirement age in your previous contract of service I think you have a case to complain about the so-called retirement. You may be entitled to termination benefit. Make a complaint at the Labour Office.
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