The law and retirement
The Chronicle 25 August 2017
Davies Ndumiso Sibanda, Labour Matters
THERE have been many disputes related to retirement with workers wanting to remain in employment and employers demanding that workers should leave.
The Labour Act Chapter 28:01 is silent on retirement date as it leaves the decision on retirement to individual employers and National Employment Councils. This means each employer must clearly state when his employees will have to retire.
There has been a misconception that pensionable age and retirement date are the same. This is wrong as it is only so when the employer has stated so as is the case with the Mining Industry where the retirement coincides with pensionable age of 60 years.
There are industries and organisations where for years retirement age has been set to be guided by the Pensions Act and related regulations, there is nothing wrong with that and workers who reach the pensionable age have to be terminated.
Where the retirement age is known to all employees there is no requirement to give notice of intention to retire as the employees know. However, it is good practice at least three months before the end of the contract to advise the employee of retirement.
Some workers have claimed three months’ notice prior to retirement. In my reading of the law, there is a difference between notice given to terminate an employee’s contract in terms of Section 12 of the Labour Act Chapter 28:01 and retirement. In my view, retirement date is a fixed date usually based on the employee’s age and as such once the employee reaches that age he or she must leave employment and there is no requirement for notice unless it is provided for in the employment contract or collective bargaining agreement.
Custom and practice in Zimbabwe has been to link retirement age to pensionable age of 55 years for early retirement, 60 years for hard jobs like mining and 65 years for softer jobs and many factory workers.
Unless the retirement age is protected by contractual agreement or collective bargaining agreement, the employer reserves the right to vary the retirement age. He, however, has to do it in a legal manner where it is contractual or covered by collective bargaining agreement. Workers on their part have to prepare for retirement so that when the time comes they have adequate means to look after themselves. The world today however has given a new look to retirement age and in a number of professions and trades individuals above 65 years have a wealth of information and experience that is critical for moving forward thus in areas such as engineering, mining and finance some of the top consultants are above 65 years. In conclusion retirement dates must be known and kept so as to avoid inconveniences and disputes when one has to retire.
Davies Ndumiso Sibanda can be contacted on:
Email: [email protected]