Retirement age reached in contract

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  • SCW
    Full Member

    • Jul 2017
    • 61

    #1

    [Question] Retirement age reached in contract

    This time last year, my driver (20+ years service) reached the retirement age of 60, as per in his employment contract.
    In Feb 2022 we signed a new fixed term contract for 1 more year - which expires at the end of this month, Feb 23.

    I intend to keep him on for the immediate future, but fear his ailing health and eyesight will render him incapacitated within the next year, probably sooner rather than later.

    Can I keep him on a month to month basis, with a new short term contract every month - or will this lead to problems if this extends past 3 consecutive months?

    What is the best (securest) way to handle this, as I fear that regardless of how it is done, it will end at the CCMA.
  • Blurock
    Diamond Member

    • May 2010
    • 4203

    #2
    Originally posted by SCW
    This time last year, my driver (20+ years service) reached the retirement age of 60, as per in his employment contract.
    In Feb 2022 we signed a new fixed term contract for 1 more year - which expires at the end of this month, Feb 23.

    I intend to keep him on for the immediate future, but fear his ailing health and eyesight will render him incapacitated within the next year, probably sooner rather than later.

    Can I keep him on a month to month basis, with a new short term contract every month - or will this lead to problems if this extends past 3 consecutive months?

    What is the best (securest) way to handle this, as I fear that regardless of how it is done, it will end at the CCMA.
    You may have to consult a labour expert on this one, but this is what I would do:
    1. Let the current contract expire and don't renew it. Get agreement and sign off on the expired contract.
    2. Sign a new contract subject to one month's notice applicable to both employer and employee.

    A 3 month contract will be too risky if he has a sudden setback whereas a monthly notice agreement will allow the employee to be retrenched at any time.
    I'm not sure if there has to be a period of no employment between the two contracts. best is to get advice.
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