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The Court of Appeal held that TAZARA employees were bound by a collective agreement fixing compulsory retirement at 55, and dismissed the appeal.
An employee who is about to reach compulsory retirement age can lawfully be retrenched for operational requirements if the employer follows fair and objective criteria and procedure. The employer's use of early retirement as a retrenchment criterion was lawful, and the applicant was not entitled to compulsory retirement benefits since he was not retired but retrenched. The collective agreement's enhanced benefits did not apply as the employer paid statutory benefits and a golden handshake, and financial constraints justified the retrenchment.
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