Dismissal case sparks interest as an employee who reached retirement age took employer to court on whether the employee can be fairly dismissed based on their age.
A recent BusinessTech article looked at a case involving an employee who reached retirement age but did not retire, as per contract. Relebogile Mabotja speaks to Fiona Leppan, Director of Employment Law practice at Cliffe Dekker Hofmeyrabout on what the law says about this.
The employee entered an employment contract with the employer on the 30th of January 2008 and the employment contract expressly stated that the employee’s retirement age is 60, however, the employee turned 60 in 2018 and continued to work until January 2019, where the employer informed the employee in writing that his contract would be terminated with effect from 12 February 2019 due to the employee reaching their retirement age.
Legal experts from Cliffe Dekker Hofmeyr said that in the case of Motor Industries Staff Association and Another v Great South Autobody, the Labour Appeal Court (LAC) held that under section 187(2)(b) of the Labour Relations Act (LRA), an employer can fairly terminate the services of an employee at any stage after the retirement age has been reached.
We have to be mindful about where we are as a country, we have significant unemployment, young people need to get into jobs, and therefore this type of structure is not uncommon and nor should it be seen as unfair.
Fiona Leppan, Director of Employment Law practice -...
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https://www.702.co.za/articles/456756/what-the-law-says-about?ref=tid:22