Cathy Wilson is 71 years old and in good health. She has been with her company f

Question

Cathy Wilson is 71 years old and in good health. She has been with her company for 26 years, and has an excellent attendance record, and her performance record reflects consistent periodic increases in pay. She is currently Head Cashier, and responsible for cash flows over $1 million per week. The company would like to replace Ms. Wilson with a younger person because of the significant responsibility for cash exchange and control. The company asks Ms. Wilson to consider retirement, but she declines because she loves her job and remains healthy and active. They offer a bonus of $20,000: $10,000 upon retirement and $10,000 after the first year. She willingly accepts their offer! Is the company acting illegally? Please explain why.

Explanation / Answer

The company offered acting legally and employee legally accepts that.

As Ms Cathy Wilson is of 71 years, so the company, after the retirement age and retirement is due, can ask the employee to have retirement on the terms acceptable to both the company and the employee. Here, the company to infuse a young blood, offered a bonus of $20,000 to Ms Wilson ie. $10,000 upon retirement and $10,000 after the first year. The employee Ms. Wilson accepted the offer and consider her retirement. Thus both the parties, the company and the employee has acted legally.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.