The appellant was employed by the City of Harare in 1981 as a Junior Treasury Officer. His contract of employment stipulated that his conditions of service would be governed by SI 147 of 1981, which provided for a normal retirement age of 65 years. SI 147 of 1981 was subsequently repealed and replaced by various statutory instruments. SI 135 of 2012 reduced the normal retirement age for the respondent's employees from 65 to 60 years, but this instrument applied only to employees in grades 16 to 5, expressly excluding employees in grades 1 to 4. The appellant was employed in a grade 2 position. Both parties contributed to the Local Authorities Pension Fund, which had regulations providing for retirement ages ranging from 55 to 65 years. On 18 March 2014, the respondent wrote to the appellant advising him that he had reached normal retirement age and was being retired with immediate effect at age 60. The appellant challenged this decision on review, contending that the actions were unlawful and that he had a legitimate expectation to retire at 65. The Labour Court dismissed the application, and the appellant appealed to the Supreme Court.
The appeal was allowed with costs. The judgment of the Labour Court was set aside and substituted with an order granting the application for review with costs, and setting aside the decision of the respondent to summarily retire the applicant at 60.
The regulations of a pension fund do not fix the age at which an employee will retire from employment unless, expressly or impliedly, the employer and the employee agree that this should be so. Mere membership of a pension fund, without other evidence tending to show that the parties agreed to import the retirement age as fixed by the pension scheme into the contract of employment, is not an adequate basis for holding that the age of retirement as fixed by the pension fund is the same as the age of retirement from employment. Retirement from a pension fund is not synonymous with retirement from employment, and the two retirements can lawfully occur on different dates. One may attain retirement age for pension purposes while still in employment. Where an employer intends to apply the retirement age fixed by a pension fund for the purposes of retiring employees from employment, it must import this age, with the consent of the employees, into the conditions of service.
The Court observed that under the Pensions and Provident Funds Act [Chapter 24:09], one may be regarded as having retired for the purposes of the Act and therefore eligible to receive a pension, without necessarily having retired from employment. The Court noted that while this understanding was not directly relevant to the facts of the appeal, it underscored the clear legal position that the retirement age fixed by the pension scheme is not necessarily the same age at which one must retire from employment. The Court also clarified the correct interpretation of the precedent in Athol Evans Hospital Home v Monica Maruta SC 66/05, explaining that it was not authority for the proposition that pension scheme regulations alone fix retirement age from employment, but rather was decided on the basis of the employee's election to be bound by one of two available schemes where both parties had agreed to the retirement age.
This case is significant in Zimbabwean labour law as it clarifies the relationship between pension fund regulations and employment contracts. It establishes that pension fund regulations cannot unilaterally determine the retirement age from employment without express or implied agreement between the employer and employee. The judgment reinforces the principle that retirement from a pension fund and retirement from employment are distinct concepts that may occur at different times. The case also emphasizes the importance of ensuring that statutory instruments and collective bargaining agreements expressly apply to an employee before they can be relied upon to alter fundamental terms of employment such as retirement age. This decision protects employees from arbitrary changes to their conditions of service and requires employers to demonstrate clear contractual or legislative authority for retirement decisions.