When Early Retirement is Valid

Can a company retire its employees at an early age?

The compulsory age of retirement is at 65 while optional retirement may start at age 60.  This does not prevent the company and its employees, however, from entering into contracts or agreements such as a CBA or employment agreement with early retirement provisions below the minimum ages set by law.

But for an early retirement plan to be legally defensible, the employees must have freely or voluntarily consented to the early retirement provision; otherwise, the early retirement may be considered invalid later in court as a form of illegal dismissal. 

See also Philippine Counseling blog for case details.

Related posts:

  1. Can Company Lower Age of Retirement of Employees?
  2. When is Neglect of Duty a Valid Ground for Termination?
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