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Retirement age and fixed-term contracts

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Retirement age and fixed-term contracts

Fixed-term contracts are commonplace in both the private and public sectors. The case of SABC v Valla (JA100/24) [2025] ZALAC 47 (22 September 2025) is interesting because of the clash between a fixed-term contract, the existing retirement age and a board resolution to convert general managers to permanent employees.

13 Oct 2025 1 min read Employment Law Alert Article

At a glance

  • SABC v Valla (JA100/24) [2025] ZALAC 47 (22 September 2025) dealt with the clash between a fixed-term contract, the existing retirement age, and a board resolution to convert general managers to permanent employees.
  • The Labour Appeal Court found that a board resolution or policy decision does not, without more, vary the existing terms of an employment contract – mutual agreement by the parties to the contract is required to effect such changes.
  • It also found that differentiations in retirement age based on occupational categories, rather than age, do not per se constitute unfair discrimination under the Employment Equity Act 55 of 1998.

15207 ALERT_Employment 13 October 2025

15207 ALERT_Employment 13 October 20252

15207 ALERT_Employment 13 October 20253

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