Age for Employee Retirement in South Africa Explained

What is the Legal Retirement Age?

Currently, there is no law in South Africa that specifically at what age an employee must retire.

What is the Normal Retirement Age?

The usual age at which people retire at is around 60 to 65 years. This age however is not prescribed in terms of law.

What Age do I need to Retire by?

To determine at what age you specifically and in particular need to retire by, the following documents/factors need to be considered:

• your employment contract

• your employer’s policy or past conduct in respect of past employee’s retirements

• case law

Notably, an employee cannot be forced to retire by a certain age unless either their employment contract specifies a particular retirement age or there is a company policy/norm that sets the official age for retirement.

Retirement Age specified in Employment Contract

If you sign an employment contract that stipulates a set retirement age, then you can legally be required to retire at that age and your employer will not be required to give you notice.

Company Policy on Retirement Age

If the age of retirement is not specified in your employment contract but is agreed or specified in a company policy or established by an organisational norm, then your employer can give you notice requiring you to retire at that age. Your notice period would be the same as the notice period for termination of employment as contained in your contract of employment.

No Retirement Age is Specified?

If no mention age of retirement is specified in your employment contract and there's no company policy or organisational norm in this regard, then you can continue to work until you're unable to do your job properly. Your employer will only be able to terminate your contract of employment in accordance with applicable labour legislation and will have to follow the correct procedures.

Working Past the Age of Retirement

Where an employee works beyond an agreed or normal retirement age, the harsh reality is that such an employee is in effect working on ‘borrowed time”.

Employees must be aware that whilst they would like to be afforded the opportunity to work beyond their normal retirement age, under their conditions of service, they will always be vulnerable to a dismissal after reaching their normal retirement age.

There's no legal certainty regarding the rights of an employee who works beyond retirement age. It's 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.

Barter McKellar’s employment lawyers are able to advise you of your rights, obligations and responsibilities in this regard. if you would like to find out more information, contact our offices.