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The Borneo Post: Former employees allowed to appeal over pension funds

399 Former Shell Malaysia employees known as

*Some of the 399 former Shell employees known as “Team A”

Tuesday, November 20th, 2007

KUCHING: The Federal Court (FC) here has granted leave or permission to 399 former employees of two major petroleum corporations to appeal against their ex-employers in connection with their pension funds.

The FC yesterday agreed that there was merit to their application for leave.

The applicants led by one Chong Thian Fook contended that the pension funds namely Retirement Benefit Fund or Provident Fund (lump sum) had been miscalculated and as a result had shortchanged them.

They argued that under the companies’ policy, any employee who has worked with these companies for more than five years was entitled to the pension funds.

The case was first heard at a Miri High Court on Sept 20, 2004 which decided in favour of the applicants.

The court said these pension funds were additional benefits offered to employees apart from the provident fund or retirement benefit scheme set up by the government and that their EPF deductions from the lump sum were unlawful.

On March 23, 2005 a Court of Appeal reversed the decision of the Miri High Court and held in favour of the corporations.

It held that the EPF deductions from the lump sum did not deprive the affected employees.
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