Ed Llarena, Jr.
Owner/ Managing Partner
Hr Consulting ,trainer -creative Thinking
You have posed an interesting query..
what do you mean by retirement ?..May be you need to look at laws ..normal practice of retirement is one when reaches the age of 58 or 60 years..then person is deemed to be retired..is entitled to all statutory benefits..if after 60 years if they work then they are retained as Consultants and not as employees..
Your Client is right that he should submit the letter of resignation ...if he wishes to work somewhere else..
Benefits - Severance package of 3-6 months gross salary..
Hope this helps..
26th March 2006 From India, Pune
If we accept that he should be resigning instead of retiring,then should the company be obliged to pay him for resignation?who actually should be paying the other?My client or the exiting employee who should actually give some 3 months notice.If severance obligation was not part of his engagement/employment offer should the company be liable to pay him?So many questions..!
27th March 2006 From United Kingdom
1st April 2006 From United Kingdom
Your name implies the essence of the answers to your many questions. Indeed, the Labor or Local Law where your client is operating will have much to say on the procedures for separating an employee, and the extent of benefits that he/ she is entitled.
In our part of the world, the dismissal of an emloyee with regular employment status has specific procedures to comply. Non-compliance to the requirements can mean "illegal dismissal, re-instatement, backpay" and possible "moral/ exemplary damages" for the company.
Asking an employee to resign (whether managerial or rank and file) can be considered as "constructive dismissal" if not done properly and the labor or local law has provided for it.
Separation benefits are normally tied up with the length of service an employee has with the company. Our country's labor law provides a minimum of 50% of the current salary (per year of service) as legal entitlement.
The offer of one (1) year staggered pay (plus used car) can be viewed as attractive depending on the basic legal entitlements which should be used as benchmark. However, if I am the concerned employee and we have the necessary laws in place against "constructive and illegal dismissal", I will sue the employer for better returns.
By the way, paying separation benefits in installment, and with necessary conditions, is plain harassment. The employer can protect its interests via a "waiver and quit claim" that includes provisions that protects it against all fears (whether valid or unfounded).
You seem to imply that your client is acting ahead of your legal (?) advises. Is he? If he does, I am wondering about the ethical practices in your country's legal practice.
Ed Llarena, Jr.
7th April 2006 From Philippines, Parañaque