Termination Of Employment Essay

875 words - 4 pages

UNIVERSITY OF CALOOCAN CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
CAMARIN CAMPUS

CASE STUDY
“TERMINATION OF EMPLOYMENT”

Submitted By:

Charilou M. Oliver
BSBA-HRDM 4D

CASE SYNOPSIS
Mrs. Ashley Villahermosa started working for CLN Company on December 15, 1988 as a ticket seller assigned at Fly Me to the Moon, Recreation Area. Later on, she was promoted as cashier and then as clerk typist.
On April 1, 1990, CLN Company instituted an Employees Non-Contributory Retirement Plan which provides that any participant with twenty (20) years of service, regardless of age, may be retired at his option or at the option of the company.
On January 1, 2011, CLN Company amended the retirement ...view middle of the document...

III. STATEMENT OF THE PROBLEM
Can a company retire employees below legal age limit on the basis of Non-Contributory Plan Program?
IV. OBJECTIVE
This study aims to provide the most possible solution for this case in two (2) months time.
V. SWOT ANALYSIS
Strengths: * On April 1, 1990, CLN Company instituted an Employees Non-Contributory Retirement Plan. * CLN Company amended the retirement plan in compliance with Republic Act (R.A.) No. 7641 * Mrs. Villahermosa was 50 years old with 25 years of continuous service to the company. | Weaknesses: * Mrs. Villahermosa and the rest of the employees did not signed any contract or agreement regarding Non-Contributory Retirement Plan. * On, Feb. 15, 2011 the company decided to terminate Mrs. Villahermosa without further processes. |
Opportunities: * Personal Meeting with the terminated employees including Mrs. Villahermosa and fixed problems on their favor instead of facing legal issues. * Resuming of work contracts and/or fixing separation and retirement benefits. | Threats: * Possible legal cases against the company. * Bad reputation and company disgrace. * Possible Legal Costs. |

VI. AREAS OF CONSIDERATION
As a rule, the compulsory age of retirement is 65 while optional retirement starts at 60.  Employers, however, are allowed to enter into agreements for early retirement below these age limits but they must be able to show, if questioned later, that their retirement plans or agreements were voluntarily accepted by the employees. Without proof of voluntary consent, a retirement made on the basis of this early retirement plan may be considered invalid as a “deprivation of property without due process of law.”
VII. ALTERNATIVE COURSE OF ACTION
1. The company must stand firm in...

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