Retirement Pay to someone probably not retiring?

[tourleadersi]

Hi there, just looking for some advice.  Firstly I want to say that I am not trying to avoid paying severance, just checking where I stand.

 

Over 60 year old employee has handed in notice saying that she wants to retire.  She is due 6 months after having worked for me for just over 3 years.  Realise I need to pay severance, not great right now as times are hard but hey, its the law and the right thing to do.  She has just come up to me and asked if I can give her a reference letter when she leaves.  I asked her if she was going to another job as then technically she wasn't retiring and she got all flustered and said it was for a visa.  

 

Now fairs fair, if she is retiring then great.  But if she is just taking me for 6 months salary whilst leaving me in the lurch and stepping straight into another job then that doesnt seem right.  The impact on her colleagues is going to be tough and this goes against my sense of fairness.

 

Any input on how this can be handled?  Should I just pay and forget about it?  Is there anyway I can address this if I found out a month from now she has gone somewhere else to work?  

 

If there is a loophole here where 60+ staff can quit and demand severance and then move onto the next company then no one is going to touch anyone with mature levels of experience...

[jacko45k]

Is severance pay only required for those that are terminated not resigned?

[tourleadersi]

2 minutes ago, jacko45k said:

Is severance pay only required for those that are terminated not resigned?

Nope, I believe if someone chooses to retire after 60 then you have to pay it.  Thats the point, I wouldnt have terminated her as I need her, but she wants to walk and I have to pay no matter what.  Going to grind my gears if she just walks into another job...

 

Perhaps I am wrong?

[marcusarelus]

6 minutes ago, jacko45k said:

Is severance pay only required for those that are terminated not resigned?

If the company stops contract after 10 years the employee gets 8 months pay.  If the employee resigns the employer may or may not give the 8 months pay.  Over 60 the employer has to pay based on length of service. 

Edited July 22, 2019 by marcusarelus

[tourleadersi]

Just now, marcusarelus said:

If the company stops contract after 10 years the employee gets 8 months pay.  If the employee resigns the employer may or may not give the 8 months pay.  

True, but this is retirement, not technically resignation.  However I suspect she is actually resigning under the guise of retirement so that I have to pay her severance.

 

[stephehr]

Wait and see if she takes you to court then pay that person  And yes give the letter that they asking for that way you are showing that you don't hold any grudges

[chrisinth]

18 hours ago, tourleadersi said:

True, but this is retirement, not technically resignation.  However I suspect she is actually resigning under the guise of retirement so that I have to pay her severance.

 

She is over 60 years old and asking for termination of employment, so, by the law, you are obliged to honour that with regards to severance. She has given you and your company 3 years service.

 

60 is the retirement age but I don't think there is anything written that someone over the age of 60 cannot be employed.

 

I am in this bracket (reference age) and if I resigned would expect severance from the company.

[crazyk]

I know it's a thailand forum but you do not say which country your company is,a lot of posters have asked questions about similar things in their home countrys but named the country,each country has different rules

[The Theory]

We all try to have a better life/business by using law/rules, no matter we are employees or employers. If she has opportunity using law then she can do it. And you have the right giving the letter/ not giving any. Welcome to the world of employers/employees. 

Edited July 23, 2019 by The Theory

[digger70]

On 7/22/2019 at 1:08 PM, tourleadersi said:

Over 60 year old employee has handed in notice saying that she wants to retire.

She is retiring from the job she worked for you and over 60. what she does when leaving you're place of work is up to her . What she does after has nothing to do with you. 

[DJ54]

I don’t know the labor law..

 

Is the 8 weeks specifically if the person retires? OR could be anything?

[dlclark97]

10 hours ago, stephehr said:

Wait and see if she takes you to court then pay that person  And yes give the letter that they asking for that way you are showing that you don't hold any grudges

Yes, give her the letter and speak of her as having been a loyal, trustworthy and valued employee.   Finish it up by congratulating her on her retirement.

[blackcab]

On 7/22/2019 at 1:08 PM, tourleadersi said:

Should I just pay and forget about it?

 

Yes.

 

On 7/22/2019 at 1:19 PM, tourleadersi said:

Going to grind my gears if she just walks into another job...

 

That's just how it is I'm afraid. Just let it go. Some companies retire most staff at 60 and replace then with younger and cheaper workers, so it works both ways. One company I know offers the retired person their job back should they want it, but at the salary they would pay a new hire. Some of the retirees accept, as it keeps them occupied and they quite like working with their colleagues.

[Tony125]

On 7/22/2019 at 1:23 PM, tourleadersi said:

True, but this is retirement, not technically resignation.  However I suspect she is actually resigning under the guise of retirement so that I have to pay her severance.

 

You should understand that a person could retire  and by law you must pay the 6 months. However after doing so she may get an offer that is too good to pass up and may unretire. Nothing you can do about that.

Many workers in US retire , take  their pension and 401K then a few months later decide to work part or full time.