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ARTICLE · 03 NOVEMBER 2026

Age-based Separation Packages: PRASA Ordered To Pay R1.5 Million For Age Discrimination

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
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Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr (CDH) is one of the largest full-service business law firms in South Africa,...

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A recent Labour Court judgment demonstrates that structuring voluntary separation packages by age, without evidence to justify the distinction, may constitute unfair discrimination under the Employment Equity Act. The case examines whether an employee who accepts a lower age-based package waives their right to challenge it, and explores the limits of contractual agreements in overriding constitutional protections against age discrimination.

South AfricaEmployment and HR
Yvonne Mkefa
Yvonne Mkefa
Sashin Naidoo
Sashin Naidoo

Voluntary severance and early retirement schemes are common tools for reducing headcount. A recent Labour Court judgment shows that structuring them by age, without evidence to justify the distinction, may be unfair discrimination under the Employment Equity Act 55 of 1998 (EEA), and that an employee who accepts the lower package does not waive the right to challenge it.

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At a glance

  • A recent Labour Court judgment shows that structuring them by age, without evidence to justify the distinction, may be unfair discrimination under the Employment Equity Act 55 of 1998 (EEA), and that an employee who accepts the lower package does not waive the right to challenge it.
  • Age is a listed ground for unfair discrimination under section 6(1) of the EEA. Under section 11(1), once discrimination on a listed ground is alleged, the employer must prove that the differentiation is not unfair discrimination, or was rational and not unfair or otherwise justifiable, failing which it is unfair.

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