HR Glossary

Mandatory retirement

What is a Mandatory retirement?

Mandatory retirement is a term used in human resources to describe a policy or regulation that requires employees to retire at a certain age. This age may be set by the company, the government, or a labor union. Mandatory retirement is controversial, as many people believe that it is unfair to force employees to retire against their will. Some opponents of mandatory retirement argue that it is discriminatory, as it disproportionately affects older employees. Others claim that it is unnecessary, as most people are healthy and able to work well into their 60s or 70s. Despite these objections, mandatory retirement remains a common practice in many countries.

How do you build a Mandatory retirement?

There is no single answer to this question as it will vary depending on the organization and the position in question. However, some tips on how to build a mandatory retirement include:

  • Establish a retirement age in the organization’s policies and procedures
  • Notify employees of the retirement age and the consequences of not retiring at that age
  • Ensure that the retirement age is applied fairly and consistently across all employees
  • Communicate the retirement age to all affected employees early on, so they have time to plan
  • Review the retirement age regularly to ensure it is still appropriate

Who uses a Mandatory retirement?

Mandatory retirement is a policy or law that requires employees to retire at a certain age, usually 65. Mandatory retirement is used by employers to reduce the number of employees who are eligible for retirement benefits and to ensure that younger employees are given the opportunity to advance in the company. Mandatory retirement is also used to reduce the number of employees who are eligible for workers’ compensation benefits.

Is a Mandatory retirement legal?

There is no one answer to this question as it depends on the specific situation and country in which the retirement is taking place. Generally speaking, mandatory retirement is legal in some form or another in many countries around the world. However, there are often restrictions on when and how it can be enforced, and there may be exceptions made for certain employees, such as those in high-ranking positions or with a high level of experience. Additionally, there are often legal restrictions on how retirement funds can be distributed, and employees may be able to continue working past the official retirement age if they choose to do so.


Stay one step ahead.

Be the first to hear about tips, tricks and data-driven best practices for HR professionals.