Labor relations: the executive separation package: handle with care
Article Abstract:
In practice, the role of the personnel manager is often to develop a separation package prior for high-ranking executives' dismissals. The main factors to be considered in designing a separation package are: reason for termination (such as poor performance, staff reduction, incompatible management philosophy or personality conflict, or misconduct, such as company policy violations and embezzlement), length of service, position in the community, past treatment of other terminated executives, company philosophy, position in the company and salary level, and liability issues, especially age discrimination. Items that may be considered in the separation package are: retirement benefits, Social Security benefits, profit-sharing and thrift plans, continued health coverage, life insurance, bonus plans, stock options, special agreements with the executive, vacation, severance payment, and company car.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1986
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Changes in mandatory retirement and benefit accruals take effect
Article Abstract:
Under new laws such as the Omnibus Budget Reconciliation Act of 1986, mandatory retirement ends effective January 1, 1987, and benefit contributions and accruals must continue for employees working after normal retirement age, which affects Medicare packages as well as other employee benefits. There is a seven-year exemption to mandatory retirement for tenured university professors and for firefighting and law enforcement personnel. The laws, however, did not change the executive exclusion. The new laws also eliminate the three percent Social Security trigger, which has been used in the past to determine whether to grant increases in Social Security benefits payable.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1987
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Unemployment insurance determinations can be critical
Article Abstract:
Unemployment insurance determinations and other administrative findings in employee situations could have significant effects on employee lawsuits, especially those involving wrongful termination. Such a court case involving a Connecticut worker was dismissed, based upon a finding by the state unemployment insurance office that the worker had voluntarily resigned. This particular case helped the employer, but another case could as easily harm an employer's case; therefore, it is crucial that employers give full attention to administrative rulings in employee situations.
Publication Name: Personnel Journal
Subject: Human resources and labor relations
ISSN: 0031-5745
Year: 1986
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