SUHAKAM’s REPORT TO THE UNITED NATIONS COMMITTEE ON
ELIMINATION OF DISCRIMINATION AGAINST WOMEN
application of appeal to the decision was filed in the Court of Appeal. However, in June 2013,
the Government withdrew its appeal application and SUHAKAM applauds this decision.
3.8.6
Age of Retirement
(i)
The recent move to increase the retirement age of employees in the private sector employees
to 60 is very much applauded. The Minimum Retirement Age Act which was gazetted on 16
August 2012, increases the compulsory retirement age of private sector employees to 60. This
Act came into effect on 1 July 2013. However, employers are allowed to apply to Ministry of
Human Resource to defer the implementation until 31 December 2013. The Act also provides
that an employer shall not prematurely retire an employee before he attains the minimum
retirement age. The Act also strikes down any retirement age in any contract of service or
collective agreement signed before the coming into effect of the Act, which is below the
minimum retirement age of 60; such clause shall be deemed to be void. However, the new Act
does not prevent an employee from retiring upon attaining the age of optional retirement which
may be agreed upon between the employer and employee. The new Act will give equality to
women especially in the private sector who need to continue working to support the family and
also to receive extra pension allocations and contributions to the Employee Contribution Fund
(EPF). However, there is nothing in the Act to prevent any employer from prescribing different
retirement ages for male and female workers by maintaining the minimum retirement age for
one group but a higher one for another.
(ii)
The Commission would like to highlight a decision by the Court of Appeal on 21 March 2012
which dismissed a judicial review application by eight (8) female workers claiming gender
discrimination when forced to retire earlier than their male colleagues. A three-man bench led
by Justice Datuk K.N. Segara upheld a 2010 High Court ruling,26 which had overturned the
Industrial Court’s 2008 decision that it was discriminatory and unconstitutional for the company
to provide for different retirement ages for men and women. A subsequent application to the
26
Gan Soh Eng & 8 others v. Guppy Plastic Industries Sdn. Bhd. (W-02-1194-2010).
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