Privatisation of a Company

RESIGNED AFTER BEING APPOINTED TO SERVE IN AN ORGANIZATION

 [Section 12A Act 227 / Section 13 Act 239]

An employee who retires from the above provisions needs to be serving the company for 5 years continuously unless conditions as per below occurred:

a.       An illness confirmed by the Medical Board of the Government,

b.       Passed Away, or

c.       Downsizing policies as agreed by the Government​

 

Schemes offered:  

SCHEME A

a.       Salary, Allowance, Bonus, Leave & Medical expenses according to government rate

b.       Able to convert to Scheme B within two years (after 2 years, only able to convert by obtaining a job promotion)

c.       Duration of Service and the last drawn salary at the company will be taken into account for retirement benefits 

d.       Pension, retirement card & benefits will be given at the age of 55/56/58/60 based on options

 

 SCHEME B

a.       Salary, Allowance, Remuneration, Leave & Medical expenses according to company rate

b.       Not allowed to convert to Scheme A

c.       Duration of Service and the last drawn salary at the company will not be taken into account for retirement benefits 

d.       Benefit, Retirement card & Pension received at the age of 50(M)/45(F)


TERMINATION OF EMPLOYMENT

Benefit gained by terminated members:

a.       No pension benefit

b.       Subject to EPF scheme

c.       For permanent and temporary employees; the company must offer the reappointment option based on the terms and conditions

d.       As for part-time and contract basis employees; the company have the authority whether to offer re-appointment option


Optional Retirement

[Section 12 Act 227/239]

a.       Benefit & Retirement Card received on the date of privatisation

b.       Members who are appointed before 12.04.1991 will receive pension at the age of 50 (M) / 45 (F) while for members appointed after 04.12.1991, they will receive their pension at the age of 55. ​

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RETIREMENT DUE TO THE ABOLITION OF THE POSITION

 [Section 10(5) (b) Act 227/239]

a.       Benefit, pension card & pension received on the date of privatisation  

b.       Not subject to age or date of being appointed

c.       Not allowed to join the company / reappointed by the company except for the employees who have reached the age of 50 (M) / 45 (F) and above. Whereas those whom have serve less than 10 years can be considered to work with the company again subject to the special approval from the Government.​