#retirement age
Eventually, everyone needs to stop working. Some
people prefer to retire at an early age while others choose to work for as long
as possible. Whatever your preference, you need to know what your rights and
options are.
RETIREMENT AGE
The labour legislation does not deal directly
with the issue of retirement age. However, it does say that no one may be
unfairly discriminated against because of their age. This means that the
employer and employee must agree on a retirement age.
There are three possible situations that you
could find yourself in:
· Your employment contract requires you to
retire at a certain age.
· You have agreed with your employer on a
retirement age or there is a company norm.
· There is no mention of retirement in your
contract and there is no agreement.
If you sign an employment contract that
stipulates a retirement age, then you can legally be required to retire at that
age. The organisation won't be required to give you notice.
If the retirement age is not in the contract
but is agreed or if there is an organisational norm, then the employer can give
you notice requiring you to retire at that age. The notice period will be the
same as the notice period for termination of employment set out in your contract
of employment.
When would there be deemed to be an
organisational norm? There is a general understanding that the
"normal" retirement age is 55, 60 or 65 but this understanding is to
· the rules of a company's provident or pension
fund (but this is not definitive); or
· company policy.
If there is no mention of a retirement age in
your contract and there is no organisational norm, then you can continue to
work until you are unable to do your job properly. Your employer can only
terminate your contract in accordance with the labour legislation (that is for
misconduct, operational requirements or incompetence) and will have to follow
the procedures set out in your contract or labour law. The courts have found
that it is unfair discrimination for your employer to terminate your employment
services just because of your age.
WHAT IF YOU CONTINUE TO WORK AFTER THE
RETIREMENT AGE?
There is no legal certainty regarding the
rights of an employee who works beyond retirement age. It is thus advisable for
the employer and employee to clearly define the terms of employment after the
retirement age, for example how long the employee will continue to work for and
what notice is required to terminate the employment.
