Forced Retirement

Neferlaw

We do not have a policy on retirement. We would like four elderly employees to retire in order to cut down on our salary budget. (One employee is in his 80's). Does anyone have a tactful method of asking someone to retire?

awilliams

A note of caution- make sure you have covered your bases in terms of the Older Worker Benefit Protection Act and the ADEA. And do not give the worker a false reason why you are terminating him. It is best to tell the truth, that way you will not get caught spinning many stories if the employee decides to sue.

Anne Williams
Attorney Editor

2626987

Our company is also experiencing layoffs and Voluntary Time Off due to
the Sept. 11 issue. We are struggling financially and my boss would
like to take step #3 and implement an "early retirement" package.
Is this different (I'm sure it is) than "Forced Retirement" and what
are the quidelines for Early Retirement if we decide to move forward?
We have about seven (7) employees which we are hoping to attract with
this package. Thank You.

John Vering MO

As a general rule it is unlawful to force someone to retire because of their age no matter how old they are. I suggest you get legal advice before proceeding.
John Vering
Missouri Co-editor
816-472-3114

Rockie

I agree. I don't see how you can force an employee to retire based on their age regardless of budget reasons, etc. Even if you go about it by eliminating their positions, you are still going to run afoul of the Age Discrimination Act because it looks like what it is - eliminating older people that cost the company more. Better not go there!

sonny

What if you have an old pension plan that mandates retirement at age 70??

2626987

We feel your pain. We are also faced with this delima.
I have posted a question in regards to "Early Retirement"
which could be an option for you. ? Hope you resolve your
problem. Thanks for posting YOUR question as well.