Golden Handshake: An exceptional compensation provided to an employee upon their departure from their job, typically upon retirement or termination. It serves as a significant expression of gratitude for their diligent efforts and unwavering commitment to the organisation.
A golden handshake is a form of compensation package that is provided to employees, typically as an incentive to retire or upon termination. It involves a substantial sum of money given to the employee as severance pay. In the event of downsizing, the laid-off employees were granted a golden handshake to facilitate their transition to a new job. Similarly, after serving the company for 30 years, the CEO received a golden handshake as a retirement gift. These instances demonstrate how a golden handshake is utilised to compensate departing employees, expressing gratitude for their years of service and offering financial support during the transition to a new job or retirement.
A golden handshake refers to a financial arrangement made between an employer and an employee, usually at the time of retirement or termination, where the employee receives a significant lump sum payment or other benefits.
Yes, a golden handshake can be legally binding if it is included in the employment contract or if both parties agree to the terms and conditions of the arrangement.
There are no specific legal requirements for offering a golden handshake, but it is important to ensure that the terms are fair and comply with employment laws and regulations.
Yes, an employer has the discretion to refuse offering a golden handshake unless it is explicitly mentioned in the employment contract or if there is a legal obligation to provide such benefits.
Yes, an employee can negotiate the terms of a golden handshake, including the amount of the lump sum payment, additional benefits, or any other conditions associated with the arrangement.
Yes, golden handshakes are generally taxable as income. The specific tax implications may vary depending on the jurisdiction and applicable tax laws.
A golden handshake can be challenged in court if there is evidence of fraud, coercion, or any other illegal activity associated with the arrangement. It is advisable to consult with a legal professional to assess the validity of such claims.
In general, once a golden handshake has been agreed upon and included in the employment contract, it becomes legally binding. However, there may be exceptional circumstances where an employer can revoke or modify the arrangement, such as bankruptcy or unforeseen financial difficulties.
In certain situations, an employee may be required to repay a golden handshake if there are specific conditions or clauses in the agreement that allow for such repayment, such as breaching non-compete agreements or engaging in misconduct.
Yes, a golden handshake can potentially affect an employee’s eligibility for other benefits, such as unemployment benefits or pension plans. It is important to review the terms of the golden handshake and consult with relevant authorities or legal professionals to understand the potential impact on other benefits.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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