Unilateral change to employee’s retirement age

Unilateral change to employee’s retirement age

• 18 September 2020
• Accounting
• South African Accounting Academy

Issue

Whether an employer may unilaterally change an employee’s retirement age and, if it does, whether doing so would amount to an automatically unfair dismissal and result in unfair discrimination.

Summary

An employer cannot unilaterally change an employee’s retirement age. Should the employer do so and terminate the employee’s employment, the dismissal may constitute an automatically unfair dismissal and amount to unfair discrimination.

Importance of the case

If the age of retirement is changed without the employee’s consent and he is subsequently ‘retired’ at such earlier date this may amount to an automatically unfair dismissal and unfair discrimination. In the absence of consent, an employer cannot unilaterally change an employee’s retirement age.

Click here to access the facts and other information on this topic: 
https://www.werksmans.com/legal-updates-and-opinions/unilateral-change-to-employees-retirement-age-may-constitute-an-automatically-unfair-dismissal-in-terms-of-the-labour-relations-act-and-unfair-discrimination-in-terms-of-the-employment-equity-act/
 

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