Basically the Golden boot procedures are applied in those companies where the work force is aged and company plans to introduce new blood into the company. This is possible only when there are vacancies in the company. Now giving lucrative incentives to oldage people safely allow company to create new vacancies without arising any law obligations out of labor laws .
This practice is also applied when a company opt for restructuring for becoming more competitive or as a result of acquisition or merger.
Companies which are cutting their workforce also apply this policy, however this factor is not most dominating in this case.
4 comments:
Here in South Africa they took on the practice in industry of changing the retirement age from 65 to 60. Pension plans disappeared and you only got a Provident fund lump sum of what you paid in with a percentage paid in by the company. This also gave them an out and you no longer are covered by medical aid so can't afford in many cases to even visit a doctor.
No Golden Handshakes for most of us except top positions where they actually don't need those huge payouts.
True, top executives hardly avail any medical aid facility. Moreover they have their own family physicians or gyneacologists whom they consult.
regards
Ankur
http://managehrnetwork.blogspot.com/
Thanks a ton dear followers.
I want to make this blog a success ans would require help to do so.
The idea of running this online forum is to make it a ready reference for its followers for the long time.
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Rgds,
Ankur
Thanks a ton dear followers.
I want to make this blog a success ans would require help to do so.
The idea of running this online forum is to make it a ready reference for its followers for the long time.
Please suggest some topics for discussion.
Rgds,
Ankur
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