Compulsory retirement is when people are forced to retire at a certain age, which has generated debate in some countries. It is argued that it can be age discrimination, but employers use it for cost control and to boost morale for younger employees.
For some people, retirement is not a matter of choice. Compulsory retirement, also called mandatory retirement, refers to cases where people are forced to retire. The point at which this happens is usually determined by the age of the worker.
Compulsory retirement generally refers to a policy that requires people to leave the workplace at a certain age. This issue has generated much debate in some countries. In the United States, for example, compulsory retirement at age 65 was practiced during the 20th century. The federal government finally made it illegal for companies to force a person to retire due to age.
In some countries, arguments for and against compulsory retirement have continued into the 21st century. In 2009, the UK had a policy that allowed employers to force employees to retire if they were aged 65 or over. In Canada, some provinces banned the practice, while in others it was still allowed.
One of the main questions surrounding this policy is whether or not it constitutes age discrimination. Many argue that mandatory retirement is discrimination when age is the only reason to require a person to leave employment. Concerns were also raised about the circumstances that could result from this situation. In many cases, for example, it has been argued that some people have inadequate finances to retire at this age.
There are several reasons used to support mandatory retirement. Cost control is an argument commonly made by employers. During a crisis, many companies adopt a policy of firing or firing employees who have the least amount of time with the company. Mandatory retirement, however, can be used to allow a company to relieve itself of the financial burden on those who are the oldest. This can often lead to a substantial reduction in costs, as many of these people may be with the company for an extended period and therefore may have considerable salaries and benefits packages.
It is also argued that mandatory retirement can boost the morale of younger employees. These individuals can be encouraged to stay with the company and work harder if they know there is potential for advancement to senior positions. When people can retire at will, it is argued that younger employees can become demotivated with what they perceive as limited opportunities for promotion.
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