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MRA for contract beyond 24 months

ethan
Member
Fri, 13 Apr 2018 06:27:23 PM  (Last updated: Mon, 16 Apr 2018 08:49:29 AM)

Hi Guys,

If an employer secured a client contract that spans beyond 24 months (say 5 year contract), can they safely hire employees on contract-basis to deliver the project (for 5 years) without being subjected to MRA? The requirement here is only to have additional capacity for the duration of the project.

Many thanks

-Ethan-

KL Siew
Administrator
Sat, 14 Apr 2018 08:58:49 AM

The contract with the worker should be fixed terms for the number of years and the contract expires at the end of the contract even the worker is still below retirement age.  It does not matter how long the company is expected to complete the project.

ethan
Member
Sun, 15 Apr 2018 10:28:23 PM

Thanks for the response Siew. Much appreciated. I hope you don't mind a follow up question on this. A more basic one on MRA.

The confusing part of the MRA for me is that it is stated that it does not apply to those with contract of less than 24 months. My understanding is then for any contract beyond 24 months, it will be subject to MRA.

Taking the example of the 5 year client contract, would there then be grounds for the employee hired on contract for that role to argue for permanent employment by quoting the MRA?

http://gtp.pemandu.gov.my/gtp/Media_Coverage-@-How_Minimum_Retirement_Age_Act_affects_working_people.aspx

Many thanks in advance for spending some time on this.

-Ethan-

KL Siew
Administrator
Mon, 16 Apr 2018 08:49:29 AM

Thanks for the link, I am also not sure after reading Schedule 1(h), especially the words "inclusive extension". Does it also mean a 2 year contract cannot be renewed?  I think you really should consult the Labour Department and get a official ruling. Hope you will give a feedback for our info, if you don't mind. You may also observe, nowadays, lot of employment especially professionals are on 3 year contract, isn't it?

(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