Styen v Business Connexion Group Limited

The plaintiff, Ms Elmarie Styen, was employed by UCS Solutions (Pty) Ltd as a Programme Manager – SAP, with an agreed retirement age of 60 years. On 1 April 2018, UCS was transferred to Business Connexion Group Limited (BCX) as a going concern in terms of section 197 of the Labour Relations Act (LRA). Following the transfer, BCX sought to harmonise employment conditions across its subsidiaries, including transitioning some employees to a retirement age of 65, but no timeframe or formal amendment was agreed. The plaintiff refused to sign a new BCX contract, citing concerns including the retirement age. She turned 60 on 6 June 2020. After correspondence in July and August 2020, including BCX offering her a fixed-term contract which she rejected, her employment was terminated with effect from 4 September 2020. She alleged that her dismissal constituted an automatically unfair dismissal based on age discrimination, contending that there was no agreed retirement age between her and BCX.

The plaintiff’s claim was dismissed. The Court ordered the plaintiff to pay the defendant’s costs.

The judgment reaffirms that, in a section 197 transfer, all contractual terms—including agreed retirement age—transfer intact to the new employer unless lawfully varied. It confirms that dismissal upon reaching an agreed retirement age is fair under section 187(2)(b) of the LRA and does not require procedural fairness. The case also cautions against unfounded discrimination claims and underscores the consequences of pursuing meritless automatically unfair dismissal claims.