MALAYSIA ase a cde Ss HIRING OF RETIREE GUIDEBOOK aah Nalini Duraisamy Haji Hussain Ali Meah Arulkumar Singaraveloo OQOOGOEOS wolaysia Hr ForumMALAYSIA HR FORUM CONTENTS Background ~ Minimum Retirement Age Act 2012 (MRAA) & 2016 Amendment 4 Frequently Asked Questions (FAQ) Retirement Management Process Flow (Best Practices) ~ od Appendix 1: Notification of Impending Retirement (Sample) 2 Appendix 2: Retirement Letter (Sample) B Appendix 3: Fixed Term Contract for Hiring of Retiree (Sample) - Appendix 4: Retirement & Rehiring (Post Retirement) Policy (Sample) ~ Reference ~ 19 ‘Suggestions for improvement can be made to sophie@malaysiahrforum.com idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 2 of 19MALAYSIA HR FORUM The Minimum Retirement Age Act 2012 (Act 753) which in short is referred to as MRAA came into force on 1 July 2013 which under section 4 (1) states that the minimum retirement age for an employee shall be upon the employee attaining the age of sixty (60) years. ‘The Schedule (section 2) of the MRAA does not apply to: - Background (2) A person who is employed on a permanent, temporary or contractual basis and is paid emoluments by the Federal Government, the Government of any State, any statutory body or any local authorities; (b) A person who works on a probationary term; (c) An apprentice who is employed under an apprenticeship contract; (d) A non-citizen employee; (e) A domestic servant; (F) A person who is employed in any employment with average hours of work not exceeding seventy percent of the normal hours of work of a full-time employee; (g) A student who is employed under any contract for a temporary term of employment but does not include an employee on study leave and an employee who studies on part-time basis; (h) A person who is employed on a fixed term contract of service, inclusive of any extension, of not more than twenty four months; (ha) A person who is employed on a fixed term contract of service, inclusive of any extension, of more than twenty four months but not more than sixty months with basic wages of twenty thousand ringgit per month and above; and () A person who, before the date of coming into operation of this Act, has retired at the age of fifty five years or above and subsequently is re-employed after he has retired. Domestic servant and apprenticeship contract have the meaning assigned to them in Section 2 of the Employment Act 1955, the Sabah Labour Ordinance and the Sarawak Labour Ordinance. Any retirement age of less than sixty (60) years in a contract of service or employment made before, on or after the MRAA coming into force shall be deemed void and substituted with the minimum retirement age of sixty (60) instead. Premature retirement Section 5 of MRAA states the below: - (1) An employer shall not prematurely retire an employee before the employee attains the minimum retirement age. (2) An employer who contravenes subsection (1) commits an offence and shall, on conviction, be liable to the fine not exceeding ten thousand ringgit. (3) A premature retirement shall not include an optional retirement under section 6 and a termination of a contract of service for any reason other than on the ground of age. idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 3 of 19MRAA 2012 & 2016 Amendment MALAYSIA HR FORUM This Act does not apply to— (a) a person who is employed on a permanent, temporary or contractual basis and is paid emoluments by the Federal Government, the Government of any State, any statutory body or any local authorities; (b) a person who works on a probationary term; (0) an apprentice who is employed under an apprenticeship contract; (d) a non-citizen employee; (e) a domestic servant; (f) a person who is employed in any employment with average hours of work rnot exceeding seventy percent of the normal hours of work of a full-time employee; (g) a student who is employed under any contract for a temporary term of employment but does not include an employee on study leave and an employee who studies on part-time basis; (h) a person who is employed on a fixed term contract of service, inclusive of any extension, of not more than twenty four months; and (i) a person who, before the date of coming into operation of this Act, has retired at the age of fifty five years or above and subsequently is re-employed after he has retired. 1. This Act does not apply to— (a) a person who is employed on a permanent, temporary or contractual basis and is paid emoluments by the Federal Government, the Government of any State, any statutory body or any local authorities; (b) a person who works on a probationary term; (©) an apprentice who is employed under an apprenticeship contract; (d) a non-citizen employee; (e) a domestic servant; (®) person who is employed in any employment with average hours of work not exceeding seventy percent of the normal hours of work of a full-time employee; (g) a student who is employed under any contract for a temporary term of employment but does not include an employee on study leave and an employee who studies on part-time basis; (h) a person who is employed on a fixed term contract of service, inclusive of any extension, of not more than twenty four months; and (ha) a person who is employed on a fixed term contract of service, inclusive of any extension, of more than twenty four months but not more than sixty months with basic wages of twenty thousand ringgit per month and above; and (i) a person who, before the date of coming into operation of this Act, has retired at the age of fifty five years or above and subsequently is re-employed after he has retired. 1.The Schedule to the Act is amended in paragraph 1— (a) in subparagraph (/)), by deleting the word “and” at the end of the subparagraph; and (b) by inserting after subparagraph (2) the following subparagraph: "(ha) a person who is employed on a fixed term contract of service, inclusive of any extension, of more than twenty four months but not more than sixty months with basic ‘wages of twenty thousand ringgit per month and above; and”. Thi debook is prepared by the Malay: liwww facebook. com/qroups/MalaysisHRForum RFoum Page 4 of 19MALAYSIA HR FORUM 1. Is there an official retirement age set by the Government for Private Sector Employees? Yes, the Government via the Minimum Retirement Age Act 2012 (Act 753) has set the minimum retirement age of an employee shall be upon the employee attaining the age of sixty (60) years. This is the minimum retirement age. A company can set any age higher than sixty (60) years. Frequently Asked Questions (FAQ) 2. Can I retire an employee before they reach 60 years of age? No, you can't. A fine not exceeding RM 10,000 shall be imposed on any employer who retires an employee before they attain the age of sixty (60) years. 3. Are there any conditions for premature retirement? ‘A premature retirement (retirement before attaining the age of 60) is acceptable for optional retirement or termination of a contract of service for reasons other than the reason of age as agreed in the contract of service or collective agreement. 4. My company’s employment terms (or employment handbook or pol retirement age is lower than sixty (60). Is this valid? No, it snot valid. With the Minimum Retirement Age Act 2012, any other retirement age below than sixty (60) years in a contract of service or employment / handbook or collective agreements made prior to the enactment of the Act, shall be deemed void. ) state the 5. Can I retire an employee at other age other than sixty (60) years? Yes, as long as it not below the age of sixty (60) years. 6. Are employees on a continuous fixed term employment after their retirement eligible for termination benefits? e.g. An employee was hired after retirement on a one (1) year fixed term contract and renewed successively for three (3) years and subsequently not offered a renewal. Yes, they shall be eligible for the termination benefits as provided for in the Employment (Termination and Lay-off Benefits) Regulations 1980. 7. What can an employee do if they are retired before attaining the age sixty (60) years? If an employee has been prematurely retired by his/her employer, he/she may, within sixty (60) days from the date of his/her premature retirement file a complaint to the Director General of Labour under section 69 (1) (a) of the Employment Act 1955 or file a representation of unfair dismissal under Section 20 (1) of the Industrial Relations Act 1967. 8. Can the employee and employer fix or agree on an optional retirement age? Section 6 of MRAA states that an employee may retire upon attaining the age of optional retirement as agreed in the contract of service or collective agreement. ‘This guidebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page 5 of 19MALAYSIA HR FORUM 9. Does the Minimum Retirement Age Act 2012 affect all types of employees? MRAA does not apply to the following persons; (2) a person who is employed on a permanent, temporary or contractual basis and is paid emoluments by the Federal Government, the Government of any State, any statutory body or any local authorities; (b) a person who works on a probationary term; (©) an apprentice who is employed under an apprenticeship contract; (@) _anon-citizen employee; (e) a domestic servant (fa person who is employed in any employment with average hours of work not exceeding seventy percent of the normal hours of work ofa full-time employee; (@) a student who is employed under any contract for a temporary term of employment but does not include an employee on study leave and an employee who studies on part-time basis; (h) a person who is employed on a fixed term contract of service, inclusive of any extension, of not more than twenty-four months; (ha) a person who is employed on a fixed-term contract of service, inclusive of any extension, of more than twenty-four months but not more than sixty months with basic wages of twenty thousand ringgit per month and above; and (a person who, before the date of coming into operation of this Act, has retired at the age of fifty-five 10.Does this mean any employee who is employed on a fixed-term contract, inclusive of any extension, of more than 24 months is deemed to be permanent and shall retire at the age of 60? ‘Some have derived this opinion from sub clause (h) that says "a person who is employed on a fixed term contract of service, inclusive of any extension, of not more than twenty four months...” is not applicable in this Act and hence the amendment in (ha) as stated above. Before answering the question, we need to understand that employees may also be employed under fixed term contracts for task/piece work. Thus, these questions need to be answered:- + Is this a genuine fixed term contract? or + Is this a permanent employment window dressed as a fixed term contract? Reason being an employer may offer a fixed term contract to an employee for task/piece work which may take a period, for example, 3 years and the task/piece work will cease to exist after period. The employer will then need to relieve this employee from employment. It does not make sense for the employer to continue employing the employee after the task/piece work is completed. idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 6 of 19MALAYSIA HR FORUM Therefore, we can summarize as below: - Temporary task |>24 months |MRAA shall not apply alae Pee work is Permanent task |>24 months | MRA shall apply ei sea ae MMRAN We can also make some inference from the case law on fixed term contract of Han Chiang High School/Penang Han Chiang Associated Chinese Schools Association vs National Union of Teachers in Independent Schools W. Malaysia [1998] 2 ILR 613 where the teachers were engaged on annual contracts which were terminated at the end of each year and new contracts were provided the following year. The Industrial Court hence ruled that the teachers were employed on a permanent basis and not on fixed term contracts. Should an employer decide to adopt fixed term contract approach for flexibility purposes, It is good to take note on the following: - 1. Some employers tend to be creative by breaking down a permanent employment into multiple fixed term employment (or contract-based employment) thinking they can end the contract at the end of the contract and to avoid long term responsibilty and avoid paying termination benefits. 1, Continuous extension or renewal (with or without a clear break in between such extension or renewal) and subject to the circumstances of the position can be deemed to be a permanent employment applying the decision in the above case law. IIL. Furthermore, even a non-renewal of a fixed term contract when the need for such services still exists and the employee may have a legitimate expectation to continue to work, thus may lead to an unfair dismissal claim if a new employee is hired for the same function right after the previous employee's fixed term contract was terminated. The court may examine and decide if that it was really a genuine fixed term contract or dressed otherwise. IV. There is also a possibilty that a non-renewal of a fixed term contract may still lead to claim for unfair dismissal if the employee finds the non-renewal to be unfair. \V. An option for employers who wish to avoid a long-term responsibility fearing uncertain business situation is to study in-depth their business direction and do some projection and forward planning. It may tum out that the employer could stomach a longer fixed term contract rather than a shorter one. For example, a 4 to 5-year contract instead of renewing frequently a 1 to 2-year contract. The impact of having a long-term contract is probably safer than having a renewable short-term contract, But of course, termination benefit becomes payable as the employee has been employed for more than twelve (12) months. You may seek further legal guidance, idebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page 7 of 19MALAYSIA HR FORUM 11. We do not have any retirement clause in the employment contract and we have employees who are over the age of sixty (60) employed by the employer. How can we go about retiring these employees? The MRAA 2012 does not provide any provision for the above scenario. While there is no clear-cut law or guideline from the Government on the above questions, below is some guidance for employers to manage this scenario. We can draw an inference from the case of Dr. Satwant Singh Gill v. Assunta Hospital (1998) 4 CLI 47 whereby Judge Ahmad Kamal Md Shahid in allowing a judicial review by Dr Satwant Singh Gill, 87, sald a Mother Mary Xavier from Assunta Hospital had given him assurance in 1963 before he left government service to join the Hospital. The Judge said Section 4 of the Minimum Retirement Age Act 2012 does not apply to the applicant due to the assurance given, Background of Dr. Satwant Singh Gill's case Dr. Satwant commenced employment with the Hospital, then known as Assunta Foundation under a contract of employment for three years as a physician effective from July 1, 1963. In 1970, the Hospital made him a permanent staff until 2016. In 1988, the Hospital introduced a retirement age policy of 60 but Dr. Satwant did not accept the terms. He tumed 60 on 14 March 1993 and was forced to retire. The dispute went to the Industrial Court which held in April 1997 that the dismissal was valid as he had reached 60 years of age. Dr. Satwant then filed a judicial review application to the High Court in 1997 which ordered him to be reinstated with full back wages and without loss of any benefits. ‘That decision was upheld by the Court of Appeal the following year. Again in 2015, the Hospital terminated his employment upon him reaching 82 years of age following the Government enacting a law that the mandatory retirement age of private sector employees is 60. The Hospital claimed Satwant was also unable to comply with his clinical services. Again, the matter went to the Industrial Court which ruled in favour of the Hospital. However, in 2019, the High Court ruled that Dr. Satwant can work as long as he wants. 12. We do not have any retirement clause in the employment contract and we have employees who are below the age of sixty (60) employed by the employer. How can we go about retiring these employees? Employees without an official retirement age may be entitled to work up to the normal retirement age of employees in their category. The prevailing practice of the employer on retirement age shall be examined as well. idebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page & of 19MALAYSIA HR FORUM 13.What are steps an employer can take to address situations of questions 11 and 12? Below are some possible steps for consideration: 1. Put in place an official retirement age of 60 (or any age subject to the employer's decision on what shall be their retirement age). 2. Notify employees via an addendum to their employment contract as well as to update the Company's policy/handbook. The employees must acknowledge this new condition as it is a fundamental employment term. 3. There could be some employees refusing to accept this change as they may not want to be retired upon attaining the age of 60. To entice employees to accept this term, the company could offer some incentives such as additional EPF or retirement handshake/ex- gratia or any other incentives the employer can afford. This is not mandatory but merely to ensure everyone accepts the retirement term. 4, Employers with employees at various age levels could consider this approach; This is one way to create a formal retirement practice while setting up a plan to retire those already above the age of sixty (60). It is designed to provide them a long-advanced notice as well as to prepare them mentally, emotionally and financially. Employers may even opt for assistance such as financial planning workshops, etc. Current inc 1S od Peers Ei Below 55 60 Wehenat handshake Retire them upon attaining the age of L-month salary _|°f 6° Introduce a Totty them that they shall retire in 55-60 | 60 | retirement handshake two (2) years after attaining the age of 2-month salary _of 60. Provide financial planning advisory to| 2 years from | Introduce a help them plan for retirement. They] ‘Above 60 erent {fate | Tetirement handshake are to retire two (2) years from the of 3-month salary —_|day the incentive is announced/ laccepted. ‘An example of incentives an employer may consider offering can be based on their affordability, practicality and making it attractive, You may encounter some employees who refuse to accept the official retirement age, You can leave them aside for time being. But continue to retire any employees who reaches the retirement age. When the times comes for those employees who did not accept the retirement age, you can cite the company’s prevailing retirement practice. Please note that the employee is free to seek remedy from the Labour or Industrial Relations Office. 14, Is there a necessity to provide a cooling period to the retired employee before they are re-employed? The cooling period (or break) is not necessary if the employee has been officially retired. It is advisable to ensure the re-employment contract are made on fresh terms and nothing indicates a continuity of employment. ‘This guidebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page 9 of 19MALAYSIA HR FORUM 15.How can we support and prepare the employees for their retirement? You could support them with financial planning workshop and programme to prepare them emotionally. This could be something done ahead of time which would be highly appreciated by the employees especially those with long years of service, 16.Should we put in place a retirement clause in the Contract of Service (Employment Contract)? Yes, it is vital to add a retirement clause in order to retire the employee upon attaining the age of 60 or any age mandated by the Minimum Retirement Age Act 2012 or any age mutually agreed by the employer and the company provided is not less than sixty (60) years of age. Sample clause 1 (to avoid issuing an addendum if the minimum retirement age is revised ata later date). Retirement Age You shall retire upon attaining the retirement age stipulated in the Minimum Retirement} Age Act 2012, Sample clause 2 Retirement Age ‘You shall retire upon attaining 60 years of age. 17.1s termination benefit payable when an employee retires? This shall depend on the type of termination. Please see table below; uuicncal eee ena et cert Pema cet Yes, as they are | Regulation 4 (1) of the Employment snout eclause | Not retiring but | (Termination and Lay-Off Benefits) retifement ¢US= | being Regulations 1980 states that “an employee service terminated shall be entitled to termination benefits payment. instead. where his contract of service is terminated for With retirement any reason whatsoever otherwise than ~ clause in the | No, as they are | by the employer, upon the employee attaining contract of retiring, the age of retirement ifthe contract of service service contains a stipulation in that behalf. 18. What are the statutory and tax implications of employing a retiree? Please refer to the table below; Pere err) EPF 11% 12% or 13% - 4% socso 0.5% 175% - 1.25% HROF . 0.5% (optional) or . 0.5% (optional) or 1.0% (mandatory) 1.0% (mandatory) EIS 0.2% 0.2% - : ‘This guidebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page 10 of 19MALAYSIA HR FORUM 1 year before employee approaches retirement age _— Inform the employees on their impending retirement (suggested to be done 1 year in Best Practices! advance) a Provide necessary support for employees approaching retirement | Best Practices! i.e, Financial Planning Training + Inform the employee three (3) months prior to retirement Best Practices! (this can be in writing or verbal) y Issue a retirement letter upon the employee attaining the Mandatory! retirement age. Offer a fixed term contract of employment. Suggest negotiating fresh ‘employment terms (Unless the fixed term contract is renewed) idebook is prepared by the Malaysia HR Forum lhwww facebook. com/qroups/MalaysisHRForum Page 11 of 19MALAYSIA HR FORUM Appendix 1 Notification of Impending Retirement (Sample) PRIVATE & CONFIDENTIAL 18 November 2022 Rosman Razak Employee ID : 123456 Department : Production Dear Rosman Razak RE: NOTIFICATION OF RETIREMENT We refer to the above. We are writing to notify you on your impending retirement on 18 November 2023, We wish to ensure your retirement is smooth and the Management shall be providing you with necessary support prior to your retirement which may include a counselling and financial planning training. You will be contacted by the Human Resources Department in due course on the above. Should you require further clarification or assistance, please contact the undersigned or your immediate superior. Yours sincerely, Jason Lim HR Manager idebook is prepared by the Malaysia HR Forum lhwww facebook. com/qroups/MalaysisHRForum Page 12 of 19MALAYSIA HR FORUM Appendix 2 Retirement Letter (Sample) PRIVATE & CONFIDENTIAL 19 October 2023, Rosman Razak Employee ID : 123456 Department : Production Dear Rosman Razak RE: RETIREMENT We refer to the above. We are writing to inform you that your contractual retirement age with the Company is on 18 November 2023 upon you attaining the age of sixty (60). ‘The Management wishes to acknowledge the invaluable services that you have provided to the Company since your employment with us from 12 January 1996. You have been one of the most sincere, devoted and hardworking individuals in the Company. We are going to miss an individual with a stature like yours in the future. We would also like to wish you all the very best, happy and peaceful retired life. Kindly carry out the necessary clearance with the Human Resources Department. Yours sincerely, Jason Lim HR Manager idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 13 of 19MALAYSIA HR FORUM Appendix 3 Fixed Term Contract for Hiring of Retiree (Sample) PRIVATE & CONFIDENTIAL 1 December 2023 Rosman Razak Employee ID : 164253 Department : Sales Dear Rosman Razak RE: LETTER OF APPOINTMENT ON FIXED TERM We refer to the above. The Company is pleased to offer you the position of Marketing Advisor on a fixed term contract subject to the following terms and conditions: Duration of Employment ‘Your employment with the Company shall be for twelve (12) months from 19 November 2024 to 18 November 2025. The Company is not obliged to renew or extend this term-term contract upon expiry of the above term. Basic Salary Your basic salary will be RM 6,500 per calendar month. Bonus (optional) You shall be entitled to a one (1) month's contractual bonus. The pay-out date of this bonus shall be determined by the Company. Additional bonus (if any) may be decided at the sole discretion of the Company. You must be an active employee at the time of the pay-out of the bonus. Bonus will be paid on pro-rated basis if period served is less than one (1) year at the time of pay-out. Statutory Contribution and Tax All remuneration and bonus earned by you shall subject to the prevailing Act & Regulations. Working Hours The Company’s working hours are from 9.00am to 6.00pm, Mondays to Fridays inclusive of one (1) hour lunch break. You may be required to work additional hours including on weekends or public holidays from time to time subject to operational needs. The Company reserves the right to amend the working hours and working days at its sole discretion. idebook is prepared by the Malaysia HR Forum lhwww facebook. com/qroups/MalaysisHRForum Page 14 of 19MALAYSIA HR FORUM Notice of Termination Either party reserves the right to terminate the contract of service by giving four (4) weeks’ notice in writing or by paying four (4) weeks wages as indemnity in-lieu of notice without assigning any reason whatsoever. Transfer ‘The Company reserves the right to transfer you to any departments or subsidiaries or associate companies or other locations as required by the business within Malaysia or outside of Malaysia with or without any additional remuneration. Such transfer shall not affect your length of service with the Company. Annual Leave and Public Holidays Your annual leave entitlement is twelve (12) days per calendar year and shall be on earned leave basis. The Company observes all public holidays gazetted in the state of . Sick Leave and Hospitalisation Leave You shall be entitled to sick leave of fourteen (14) days per calendar year and hospitalisation leave of sixty (60) days per calendar year. Code of Conduct As an employee, you are expected and required to comply with all the rules and regulations of the Company and strive to preserve the good name of the company. Restraint As a condition of your employment, you are required to devote your whole time, attention, energies, skills solely to the business of the Company, and you shall not be concerned or Interested directly or indirectly in any business or work other than that of the Company. Intellectual Property and Company Properties ‘As an employee you, it shall be your responsibility to ensure all intellectual properties, information, company intelligence and records, documents and all transactions be always kept confidentially without divulging it to other than to any person authorized by the company. Conflict of Interest You will not, at any time during the period of your employment, directly or indirectly, without the prior written consent of the Company authority, engage or involve yourself in any work or business other than in respect of your duties to the Company, or undertake any such office or Position notwithstanding that your engagement or involvement in such office or position would interfere with the business of the Company. If the terms and conditions of service are acceptable to you, please confirm your acceptance by signing and returning the attached copy of this letter to the undersigned within seven (7) days from the date of this letter. idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 15 of 19MALAYSIA HR FORUM We warmly welcome you to our company and look forward to a mutually rewarding relationship. Yours sincerely, Jason Lim HR Manager ACCEPTANCE OF OFFER 1 My. Kad No.: accept the offer of this fixed term contract and agree to abide by the terms and conditions stipulated therein. I agree that by my acceptance of this offer, I explicitly consent to the Company and or its authorised agents to use my personal data for purposes relating to my employment with the Company which shall include without limitation, processing, administrating and making payments of my daims, salary and all such other reimbursements made to me by the Company from time to time (if any). I shall commence employment or Signature Date idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 16 of 19MALAYSIA HR FORUM Retirement & Rehiring (Post Retirement) Policy (Sample) Appendix 4 Purpose This policy provides a framework for employee retirement while ensuring a smooth transition for employees who are approaching retirement age and minimizing disruption to normal operations. Scope This policy applies to all employees Retirement Age ‘The Company's retirement age aligns with the minimum retirement age provided in the Minimum Retirement Age Act 2012. As such, all employees shall be retired at the age of 60 or any age (minimum age) stipulated in the Minimum Retirement Age Act 2012. Early Retirement (or Optional Retirement) Employees may opt for optional retirement by submitting their request in writing to the company at least six (6) months prior to thelr early retirement date without assigning any reasons whatsoever. Early retirement is voluntary and the company is not liable to make any payment or grant any benefits for early retirement requested by an employee. Notification of Retirement (Best practices) The Company shall notify an employee on his/her impending retirement at the earliest one (1) year prior to their retirement. ‘Annual Leave Employee are advised to utlise their annual leave prior to the retirement unless their continual presence at work is required. al Pay Employees shall be pald their final pay up to the date of retirement including benefits (if any), claims or any payment owing to the employee including unutilised accrued annual leave (if any) and any other entitlements (if any). Rehiring (or Re-employment) The Company is not obliged to rehire any employee who retires. However, should the company decide to offer re-employment, it shall be done at the sole discretion of the company. The ‘employee shall be required to observe the hiring process and shall be offered a new employment contract and all prevailing employment and statutory regulations shall be observed. A break between the retirement and re-employment may not be applicable and it shall not be construed as a continued employment. idebook is prepared by the Malaysia HR Forum liwww facebook. com/qroups/MalaysisHRForum Page 17 of 19MALAYSIA HR FORUM Clearance Process Retiring employees will be required to complete the clearance process on the last date of employment and shall return all company properties to the Human Resources Department. Employee shall be provided a signed copy of the clearance process form as an acknowledgment of successful clearance process. Ongoing Obligations 1. It is important for retiring employees to remember that the below items shall remain valid and binding even after retirement. The Company may initiate legal action against any former employee if they divulge the below without written consent from the company. a. Confidentiality and data protection policies b. Trade secrets . Any knowledge and information on the company and its products or services that are not available in the public domain d. Customer lists, business strategies, and proprietary software e. Items mentioned in any Non-Disclosure Agreement (NDA) signed during the employment. period, 2. Retiring employees may be required to sign a non-disclosure agreement to protect the company's confidential information and intellectual property. Others 1. The Company reserves the right to amend this policy from time to time and shall notify all employees when such an amendment has been made and has been approved by the Management. 2. Should there be a translation of this policy into other languages, the English version of this policy shall be authoritative in the event of any dispute or confusion. idebook is prepared by the Malaysia HR Forum lhwww facebook. com/qroups/MalaysisHRForum Page 18 of 19MALAYSIA HR FORUM Reference Minimum Retirement Age Act 2012 (as at 1 November 2016) hi xcebook.com/ groups/582553349060238/posts/1341716216477277 Forum lay aS Bhs (130987-0) ne 208 ave (et ing) Norsoonsitf {7520 subong Joya Songer rd ton sa atoena| atone eee eee ®O@O® woloysia Hk Forum www.malaysiahrforum.com idebook is prepared by the Malaysia HR Forum https:/wwwfacebook.com/groups/MalaysiaHRForum Page 19 of 19MALAYSIA HR FORUM COMPREHENSIVE IR/EA ADVISORY SERVICES 2024 Oya W Uo Conia mon meaelae Koa oaeyp ela + Basic Advisory on Collective Agreement (CA) * Basic HR Documentation Review (Excl. Handbook, SOPs) SI nance eae N ot al Konn 2 Wael cd 5 rect Gone Advisory Sessions Bere mean me eMac key ely at ede ols sterol Svan els sae eel ory mula ee serra} as er + 15% Discount on Public Training Programmes recta aencig Mca erste astm i ets (Terms & Conditions Apply) See Te ca ec OOLFOIOOIG} Ce he eta Deen Cn matt) Annual Package mel f i} i} i} i} f f f ENC Re) i} f i} f i} i} i}MALAYSIA ae a 250) ; Complimentary IR/EA Capacity Building Modules For assigned person-in-charge (Company Representative) Sena) See ea a ess Teter becca od Peer ee eet eee ea esr) Seed Dene ecm sn aeaeaed ence tea eee cS Re ee aera Teo Preparing for Industrial Court Hearing Roa len nes Ree eases eae ee ead Tetminating Employees with Disciplinary Issues Fee eee ee cs eel ue ne ea aT Boe eae b ¢ Delivery Mode : Face-to-face classroom + group discussions Upon completion of twelve (12) modules, the company representative shall be awarded the Cee ee de ua lie fea Lem elel i eis cenra Fcclated Nd eel eae ee 2. Only one (1) participant per company, i nies clon pa Oe el ene Retest Ts te fane ee seer erates sree eer rn Malaysia HR Forum is an established HR Management Cre) Cem sete nM ec merc omer) (HR Capacity Building, (2) HR/R/EA/Union advisory, (3) Training & Development, (4) HR Consulting, (5) Recruitment, Retrenchment Management & Outplacement Services and Oe Rens Nee eee tae cae on HR Operations, Recruitment and Outplacement, Pr aan eae een aera rane iete| Ter en eg cue ec eel eee ae eC Social Compliance audit preparations. We audit and consult CO CMe menus eae aa rece Saeco advisors are highly sought after and experienced industrial relations & HR practitioners and legal experts. The Malaysia Peet kee eeeenen track ST een Seacrest ©O0000® Ce he eta Deen Cn matt)MALAYSIA HR FORUM REGISTRATION FORM IRIEA ADVISORY SERVICES (YEARLY RETAINER) By MALAYSIA HR FORUM Conditions 7. Client shall appoint one (1) company representative to liaise with our Advisors on alll matters (where applicable), 2. The Advisor's role shall be limited to advisory and guidance. The Advisor is not responsible to carry out regular HR operations and administrative duties/tasks. 3. For other projectsiassignments, the Advisor's roles shall be discussed and agreed prior to initiation of project 4, For activities where travel & stay (for client representation or trainings) or additional site visit is required, the client shall reimburse the cost of travel & hotel accommodation. 5, For any urgentlad-hociproject assignment outside of service scope can be discussed and be included as part of service scope either at no cost or minimal cost but however shall subject to the complexity and duration of the assignment. 6. Any other out of pocket expenses such as photocopy, telephone charges and other related expenses shall be reimbursed (with receipts) by client. 7. HR Forum Malaysia Sdn. Bhd. shall bill the client separately for the additional time incurred by the ‘Advisor (as stated in the fair usage policy). This shall be discussed mutually prior to billing, 8. HR Forum Malaysia Sdn. Bhd. reserves the right to revise the rates on annual basis and shall inform the client in writing prior to renewal of subscription, 9. Advisory period shall start the following calendar month upon receipt of full payment. Last day of the month, Le. 30" or 31° of the month. Five (5) working days’ notice period is required Either party may terminate the subscription via email notification to sophie@malaysiahrforum.com Refund policy Refunds will be processed within thirty (30) days from the date of the termination email received Refunds shall be on pro-rated basis (including discounts provided, if any) on the remaining Unutilised advisory period Fair usage policy We love working with our customers and like to fee! that we are part of your team, whether you are a self-employed person or a company director with a couple of team members. One of our aims is to keep your costs low but still offering value for money. We are happy to provide support! access via email, phone, video conferencing or in person at our office. So, when you have a query, you can ask, and we will try and help and not have you flustering and possibly creating legal employment or regulatory issues. We price our work knowing how long the job is going to take and our understanding of what you need at that time you come to us. We are welll aware there are times where you may need the extra support so more time from us than we factor into our charges. We know things pop-up that you just have to talk to us there and then, but we cannot be all things to all people all the time within the service fee range that you pay us. We are a business like you, and we don't believe in charging for every single minute of the day, but we just wanted you to be mindful of the support we offer and for you to be aware that we will need to charge for over-use, of out of scope work. _HR Forum Malaysia Sdn Bhd. (1309571-D) Unit A304, Level 3 (West Wing), Wisma Consplant 2, No 7, Jalan SS16/1, 47500 Subang Jaya, Selangor (T) 03-8604 1925, 03-8604 1926 Page 1 of 2MALAYSIA HR FORUM HR Forum Malaysia Sdn. Bhd. acknowledges that all opinions and advice (written or oral) given by HR Forum Malaysia Sdn. Bhd. in connection with the advisory services intended solely for the beneft and use of the client in considering the transaction to which they relate, and the client agrees that no person or entity other than the client shall be entitled to make use of or rely upon the advisory services provided hereunder, and no such opinion or advice shall be used for any other purpose or reproduced, disseminated, quoted or referred to at any time, in any manner or for any purpose, nor may the client make any public references to HR Forum Malaysia Sdn, Bhd, or use HR Forum Malaysia Sdn. Bhd's ame in any annual reports or any other reports or releases of the client without HR Forum Malaysia Sdn, Bhd’s prior written consent. HR Forum Malaysia Sdn. Bhd.’s maximum liability shall be limited to one (1) month advisory fee. Payment Det Payments via bank transfer to be made to HR FORUM MALAYSIA SDN. BHD. (1309571-D), Current Account No. 14712417548 (Maybank KL Sentral) Bank transaction slip to be emailed to sophie@malaysiahrforum.com ceptance of Service Date Representative Name Designation e-Mail ‘Company No/ Direct Line Mobile No. ‘Advisory ‘Commencement Date ‘Company Name SSM Reg. No. ‘Company Address Referred by Signature Company Stamp, The invoice shall be Issued upon receipt of this registration form. The advisory period shall start the following calendar month upon receipt of full payment. HR Forum Malaysia Sdn Bhd. (1309571-D) — Unit A304, Level 3 (West Wing), Wisma Consplant 2, No 7, Jalan SS16/1, 47500 Subang Jaya, Selangor (T) 03-8604 1925, 03-8604 1926 Page 2 of 2