RegisterLog In

Employee over 60 years of age

ISO
Member
Tue, 05 Dec 2017 04:46:44 PM  (Last updated: Tue, 05 Dec 2017 07:18:06 PM)

Hi, we have an employee who is now 65 yo and been with the company for more than 15 years as a clerk. Unfortunately, previous employment letter do not state retirement age. We are now implementing HR policies and would like to let her go. Termination notice currently is one month but we are planning to offer six months notice instead under a new employment contract. Is that fair?

SuharinKL
Contributor
Tue, 05 Dec 2017 05:04:19 PM
Originally posted by ISO on Tue, 05 Dec 2017 07:18:06 PM

Hi, we have an employee who is now 65 yo and been with the company for more than 15 years as a clerk. Unfortunately, previous employment letter do not state retirement age. We are now implementing HR policies and would like to let her go. Termination notice currently is one month but we are planning to offer six months notice instead under a new employment contract. Is that fair?

Basically there is a Industrial Court case law which says that beyond retirement age (as stipulated under the law), it is the prerogative power of the Company to offer employment to its employee provided there is no express agreement between the employee and the company on specific retirement age. However for the termination, whatever agreed in the contract of employment has to be followed.

Please also double check if there is any proviso in the Company's/employee's handbook for retirement benefit. Alternatively, as a matter of prudent and appreciation the company may offer an ex gratia payment in the spirit of maintaining the harmonious relationship between the Company and the employee.

regards,

suharinsulaiman@gmail.com

ISO
Member
Tue, 05 Dec 2017 07:18:06 PM
Originally posted by SuharinKL on Tue, 05 Dec 2017 05:04:19 PM

Basically there is a Industrial Court case law which says that beyond retirement age (as stipulated under the law), it is the prerogative power of the Company to offer employment to its employee provided there is no express agreement between the employee and the company on specific retirement age. However for the termination, whatever agreed in the contract of employment has to be followed.

Please also double check if there is any proviso in the Company's/employee's handbook for retirement benefit. Alternatively, as a matter of prudent and appreciation the company may offer an ex gratia payment in the spirit of maintaining the harmonious relationship between the Company and the employee.

regards,

suharinsulaiman@gmail.com

Thanks. We have no employee handbook or retirement benefits.