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.
