Retiring EE
HRinNH
1,432 Posts
[font size="1" color="#FF0000"]LAST EDITED ON 06-29-05 AT 04:13PM (CST)[/font][br][br]Some advice would be appreciated on this situation. It's the first one of its kind that I've had to deal with.
We have an ee who will turn 65 end of August. She has not spoken with me (her Supervisor) or other management regarding her exact date of retirement until yesterday saying she wants to retire at 65 and a half.
Prior to this, our VP and Corporate CEO have been discussing for the past year or more to phase out our Accounting Department as of September 1 and moving it under the umbrella of our Corporate Accounting Dept. Her retirmenet at the end of August was part of their consideration in waiting until September 1 to make the switch.
Are we in danger of an age-discrimination suit if we retire her against her wishes at 65 due to the fact that after September 1 we will no longer have an Accounting Department in our office?
Cheryl C.
Edit: Corporate Accounting Office found an e-mail that ee sent 3-4 months ago stating that she'd like to stay on until February (her 65 1/2 date). Though they didn't respond to it, they feel that we shouldn't close out her position in September. This said, we now can phase out both the AR and AP positions at the same time (by end of December). Once I get the green light from the Controller, I'll meet with both ees and inform them of the upcoming changes. Thanks for all your input!
We have an ee who will turn 65 end of August. She has not spoken with me (her Supervisor) or other management regarding her exact date of retirement until yesterday saying she wants to retire at 65 and a half.
Prior to this, our VP and Corporate CEO have been discussing for the past year or more to phase out our Accounting Department as of September 1 and moving it under the umbrella of our Corporate Accounting Dept. Her retirmenet at the end of August was part of their consideration in waiting until September 1 to make the switch.
Are we in danger of an age-discrimination suit if we retire her against her wishes at 65 due to the fact that after September 1 we will no longer have an Accounting Department in our office?
Cheryl C.
Edit: Corporate Accounting Office found an e-mail that ee sent 3-4 months ago stating that she'd like to stay on until February (her 65 1/2 date). Though they didn't respond to it, they feel that we shouldn't close out her position in September. This said, we now can phase out both the AR and AP positions at the same time (by end of December). Once I get the green light from the Controller, I'll meet with both ees and inform them of the upcoming changes. Thanks for all your input!
Comments
Reorganization planning and execution is a good reason to terminate one's employment, if there is no need for their individual talents and experiences. This is never recommended to organize around one or any particular group of employees. You are aware of the individual's desire for retirement and timing, but confidental reoranizational planning and execution will tkae priority. I would tell her nothing until it is time and the reorganization is announce.
I know no legal requirement to force retire any employee, therefore, she can stay on-board for as long as the company is willing to keep her on-board. Her desire to stay for 65 1/2 years of age probably has something to do with the establishment of her SSA benefits. Additionally, she may have gained some information about the reorganiztion and choose to be "laid off" rather than to retire with no additional income. As a "lay off" resulting in loss of income will entitle the ee to get unemployment.
I would not force retire, I would let the chips fall as scheduled and deal with her based on your situation at the point in time when she is directly impacted.
PORK
This ee doesn't take change well, so I wanted to talk with her prior to the change so as to not shock her too much. But I think you're saying that this isn't advisable.
I'll bring your point about lay-off vs retirement to my boss for consideration. Thanks.
Cheryl C.
The EE is probably completely unaware of your plans...so she has no idea that there will not be a department for her after Sept. 1.
Maybe this is the time to talk with the company and see if there is another place she can "fit" into OR what kind of retirement incentive they would be willing to offer.
My father is a teacher and the School Board is always looking to offer early retirement incentives to get the highest paid personell off of the payroll. In their case, sometimes they offer a higher payout for accrued unused leave...but there may be other things you could consider.....
we have sometimes had people retire and the "rehired" them as consultants...for project work...sometimes they work for a few weeks a year...sometimes it's more often..it just depends on the area they came from and the work we have at the time.
good luck.
Linda
We had a massive reorganization awhile ago. In some cases, employees who were being laid off were assigned temporary positions in other departments that had need of temporary assistance for a few months - generally just long enough for the employee to qualify for their retirement. This was not done for all employees as the facts didn't apply. If their skills could not be utilized elsewhere, they were laid off with severance packages.
Cheryl C.
1) Reorganization - Do away with this accounting unit (at a location) and phase these duties in with the Corp. accounting. Should the work be transferred all at once or should it be phased into the new location? If phase, set up time table when it should begin, what steps, and when should it end? What is the last day that this unit will be operational?
2) People in the Unit - Number of people effective - 2. Have they worked there long enough that you know all their skills or do you need them to complete some type of assessment? Are there any openings anywhere in the company? Make a list of these. Determine if the present employees are qualified or just provide them this list and let them take the initiative to apply for them (whatever your policy might be).
a) If you have openings and you make offers to the present employees and it is equal job (same location, same pay), and they accept it, all is fine. b) If you have openings and you make offer(s) to the present employees and it is equal job (same location and pay) and they turn it down, they have resigned. c)If you have an un-equal job (lesser pay, different location) you can still make the offer to the employee, but if they turn it down, then "you have terminated them". d)If there is no opening available, then you have terminated the employee
3) Are you offering any severance package to any affected employees. (Pay for x no. weeks, are they eligible for 401(k) Plan, what about insurance benefits, etc.)?? If so review and explain this to affected employee (in c and d above) However, employee has to understand that they must continue to perform satisfactorily and offer committment to you until their job is actually eliminated. If they find another job and quit early (or whatever), then they won't get the package.
Talk with all employees about this as soon as you have it all organized. (Both employees being eliminated and those in Corp. who are taking over the work.) Be above board and helpful.
If employee is terminated, normally when the severance runs out (that is why I like to pay it out according to normal pay period) then the employee would be eligible for severance. If they resign, they wouldn't be. (Make sure you have documenation, offered job and they didn't take it, if they resign.)
If either employee brings up age, you can truly say that this is a business decision to reorganize the organizaiton, and age has nothing to do with it. (I hope that if you have other locaitons, they won't continue to do accounting at these and that they are merged into the Corp. as well. If not, you better have reason why.)
This is a hard thing to do, but if everyone is treated fairly, then hopefully there won't be hard, uncomfortable feelings.
E Wart
Cheryl C.