And businesses will pay dearly for getting it wrong. For example the Labour Court recently ordered an employer to pay maximum compensation (a full 2 years’ remuneration, with punitive costs) to an employee who, having been employed at the age of 63, was forcibly retired at 65.

In this particular instance, the employer claimed to have had a standard retirement policy in force, but couldn’t prove it. All employers should, to avoid any possible doubt, follow these principles:

• Formulate a properly drawn and recorded retirement policy
• Stipulate a compulsory retirement age upfront in all new employment contracts
• If your existing employment contracts don’t stipulate a retirement age, negotiate one now – today. Note that you cannot unilaterally impose a new term like this on employees; it must be negotiated.

The stakes are high here – take advice in doubt.