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WCLawyer, Attorney
Category: South Africa Law
Satisfied Customers: 15603
Experience:  L.LB (UOVS)
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at the age of 60 my sister was employed by her present employer.

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at the age of 60 my sister was employed by her present employer. (2007) No deductions were made for pension/provident fund until 2011 when she enquired about this and asked to be added to the pension fund. They want her to retire at the end of 2013, but she will receive very little money from the pension fund. My question: is it not compulsory to have pension or provident fund deducted from the time you start your employment?
Good day and thank you for your question. My name is XXXXX XXXXX I will try and assist you today.

It is not compulsory, no, except if there is a collective agreement in place that obligates an employer to provide for a pension fund. These collective agreements are normally negotiated in what is called bargaining councils and are industry specific. In other words, specific for the mining industry, or specific for the motor manufacturing industry etc.

The Department of Labour would be able to assist you in finding out whether such an industry exist.

You should also note that they cannot force her to retire unless there is something in her employment contract or their company policies that says that she must retire at a certain age. Forcing her to retire in the absence of anything like the above would be an unfair dismissal.

I suggest that you scrutinize her employment agreement and any policy documents that it may refer to, to see whether they legally can require her to retire at the end of 2013.

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