Practice question
Two plans are challenged under RA10911. Plan X is a bona fide seniority system not designed to evade the Act. Plan Y forces selected older employees to retire under a newly invented arrangement inconsistent with applicable retirement law. The employer insists that every plan labeled seniority or retirement is exempt. Which is correct?
- Both are automatically exempt because of their labels
- Neither could ever qualify for any exception
- All older employees must accept Plan Y
- Plan X may fall within the stated seniority exception, while Plan Y cannot qualify merely by its label and must satisfy the statutory retirement-plan conditions
- The Act concerns hiring only and never retirement
Legal references
- RA10911, Sections5(a)(6)–(7) and6(b)–(c): https://lawphil.net/statutes/repacts/ra2016/ra_10911_2016.html
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