Introduction

Prior to the enactment of the Minimum Retirement Age of Workers Act, No. 28 of 2021 (“MRAW Act”), Sri Lanka did not have a legally mandated minimum retirement age applicable to the private sector. Most employers operated on the basis of a customary retirement age based on practice in that specific company or group of companies. Employees would be contractually bound by the age of retirement stated in their respective contracts of employment, which was usually fifty-five years of age. The MRAW Act, therefore, brings in a minimum age of retirement in respect of the private sector for the first time.

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Application of the Act

Any age of retirement specified in a contract of employment as less than sixty (60) years shall be void, and the Minimum Retirement Age applicable to the private sector from the date of on which the MRAW Act comes into operation, i.e., the 17thof November 2021, shall be as follows:

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Exclusions

Any employer employing more than fifteen (15) workers shall not retire any worker before the Minimum Retirement Age, except:

• On the limited grounds specified in Section 3 (1) of the MRAW Act – namely – (a) Where a registered medical practitioner has certified that the worker is permanently “incapacitate” of engaging in work due to some sickness; (b) Where the service of a workman has been lawfully terminated; (c) Upon closure or destruction of an establishment due to any natural cause; or (d) With the prior written approval of the Commissioner General of Inland Revenue; or
• Where the worker falls within one of the categories set out in Schedule II of the MRAW Act, which include, amongst others, workers in the public sector, any worker under a “seasonal employment contract”, any “probationary worker”, any worker under a “fixed-term employment contract” and any domestic service worker.

Similarly, any worker who wishes to resign from his or her employment prior to the Minimum Retirement Age may do so without being compelled to remain in employment until such Minimum Retirement Age.

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Complaints and Inquiries

Finally, any worker who has been prematurely retired in contravention of this Act shall have a right of complaint to the Commissioner General of Labour. Interestingly, however, only the employer has a right of appeal to the Court of Appeal from a subsequent determination of the Commissioner-General of Labour.

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This article is intended for informational purposes only, is merely a summary of certain key provisions of the Minimum Retirement Age of Workers Act, No. 28 of 2021 and should not, under any circumstances, be used or construed as legal advice in any manner or form.

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