SUPPORTING EMPLOYEES AS THEY APPROACH RETIREMENT: UNDERSTANDING OPTIONS FOR INCAPACITY, SHORT TIME & EARLY EXIT
- EOHCB National
- 3 days ago
- 3 min read
As an Employer in the Hairdressing, Cosmetology, and Beauty industry, you may find yourself navigating sensitive conversations with long-standing employees who are approaching retirement age but are physically or mentally tired, battling health issues, or simply feeling that they can no longer manage the physical demands of the industry.
The EOHCB is here to guide you through the appropriate, fair, and lawful options available to support both your business and your employees.
What Is the Retirement Age in Our Industry?
In South Africa, there is no compulsory national retirement age, but the standard retirement age in the private sector is usually between 60 and 65, depending on what’s stated in the employee’s employment contract or company policy. In the absence of a contractual clause, employees cannot be forced to retire unless they reach the company’s defined retirement age.
In our Industry, retirement age is determined through the HBSI Pension Fund, being:
Normal Retirement Age: 65 (all risk benefits cease at the age of 65 years)
Early Retirement: From age 55
Maximum Retirement Age: Age 70
Legal & Ethical Employer Responsibilities
As employers, it’s important to remain compliant with the Labour Relations Act (LRA) and Basic Conditions of Employment Act (BCEA) when managing older employees. Age alone cannot be a reason for dismissal. You must assess capacity and fairness, and handle all exits with sensitivity and dignity.
Options for Employees Who Are Nearing Retirement but Struggling:
1. Short-Time Arrangements
If an employee is struggling with the physical demands of full-time work, you may consider implementing reduced working hours or days.
This could be structured as part-time employment, or on a flexible schedule.
Ensure the arrangement is documented and mutually agreed upon in writing.
2. Incapacity Due to Ill-Health
Where an employee’s ability to perform duties is affected by illness or chronic fatigue, a medical incapacity process can be initiated.
This includes:
Sending the employee for medical assessment
Offering reasonable accommodations where possible
Following a fair incapacity process if they can no longer fulfil their role
If dismissal becomes necessary, it must be procedurally and substantively fair.
3. Voluntary Early Retirement or Exit Package
Although early retirement is not regulated by law, employers can offer employees nearing retirement age the option of voluntary early exit packages, especially where long service or loyalty is a factor.
These packages must be offered equitably and not based on age discrimination.
4. Mutual Separation Agreements
In cases where continuing employment is not feasible, a mutual agreement to part ways may be an option.
This protects both parties and allows for a dignified exit.
Best Practices for Employers
Engage in open, respectful conversations with employees who raise concerns about continuing to work.
Keep proper documentation of all meetings, medical reports, and mutual agreements.
Consult with the EOHCB if you are unsure how to proceed – we are here to help you navigate this sensitively.
The EOHCB is Here to Support You!
We understand the challenges of balancing business continuity with compassion for your team. If you have a loyal employee nearing retirement age who is struggling, reach out to us to assist with:
Legal guidance on incapacity procedures
Templates for short-time arrangements or early exit agreements
Drafting mutual separation agreements
Contact your EOHCB representative for support and ensure compliance with South African labour law while maintaining a healthy, respectful workplace.
