What happens when someone is given the golden boot?

In business, the term "golden boot" describes the package used to convince older workers to take early retirement. Forcing an employee to take early retirement is against the law and can be viewed as age discrimination. In order to circumvent lawsuits that could result from violating labor laws, companies often offer the employees they wish to push into retirement various incentives and financial benefits.

Customarily, companies offer golden boots to higher paid long-time employees in order to clear the workforce and hire new employees at lower salaries. In addition, golden boots sometimes are offered by companies seeking to cut the size of their staffs overall.

(For more on this topic, read Retirement Plans and Negotiating Severance Agreements.)

This question was answered by Chizoba Morah.

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