Post-Retirement Employment and Security of Tenure
Sahathevan a/l Narissaman v International School Of Kuala Lumpur (Industrial Court Award No. 277 of 2021)
The Industrial Court recently held that there is no legitimate expectation that employment would continue post-retirement if the contract of employment was a genuine fixed term contract. The Claimant in this case was an individual who mandatorily retired after turning the age of 60, and subsequently was re-hired and served the School under a series of fixed-term contracts which were renewed annually until 2019.
The Court highlighted, amongst others, that it is trite law that continuous renewal of fixed term contracts does not convert a fixed term contract into a permanent one. Further, as expressly stipulated in the Personnel Handbook and as admitted by the Claimant himself, the renewal of fixed term contracts was entirely subject to the sole discretion of the School.
Therefore, the Court ruled that the Claimant’s fixed term contract was indeed genuine and that it is “entirely incongruous” for the Claimant to contend that he had any legitimate expectation of continued employment up till the age of 65.
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The School was represented by our Dato’ Thavalingam C. Thavarajah of T. Thavalingam & Co.