Retirement Agreement Letter South Africa
I am writing on behalf of my uncle, he was ordered by his employer (municipality) to retire at age 60, because no one can work for the community over 60. However, the Pesion Fund continues to view this as a pre-retirement situation that results in penalizing Fund members and not paying all pension payments. Where does an income come from after retirement? After you retire, you usually rely on a pension or pension fund for your income. If the retirement age is not set in your contract, but it has been agreed and there is a business standard, the employer is within its right to give you notice corresponding to the notice set in your employment contract. A business or organization standard is usually found in the company`s policy or in the pension or pension fund rules that relate to the business. Hello My wife will be 63 this year. She signed a contract to retire at the age of 65. Can she leave this year 2020? Even if admitted, it will be (a) a resignation (b) of early retirement (c) would be sanctioned. Finally, does the government not treat the age of 60 with impunity as the retirement age? Our courts have developed different approaches to ending the employment of workers who continue to work beyond the agreed or normal retirement age. There is no legal certainty regarding the rights of a worker who works beyond retirement age.
It is therefore desirable for employers and workers to clearly define the conditions of employment after retirement age, such as the length of work of the worker and the type of redundancy required. What if you continue to work after retirement age? If your company has an agreed age in its guidelines and employment contracts, you can terminate the contract when the employee has reached the agreed age. This communication is no different from a normal termination. The employment contract also automatically ends at the end of the calendar month in which the worker reaches retirement age. The applicant`s dismissal on the basis of his age because of the respondent`s absence of a normal retirement age was automatically unjustified within the meaning of Point 187 of the LRA and constituted unfair discrimination against EEA s 6. The applicant`s claim for damages under the EEA was denied, but the respondent had to pay the applicant a compensatory amount of 12 months` salary. If a worker has continued to work beyond the agreed or normal retirement age and there is no agreement on a new retirement age, an employer appears to have the right, at that age, to retire the worker at any stage. However, in order to reduce the risk in these circumstances, the employer should first consult with the employee on the proposed decision to retire him.
The worker should have the opportunity to intervene before the simple dismissal.