An employee who decides to retire does not need the employer’s permission. This point often surprises people, as there is a confusion between two very different mechanisms: voluntary departure (employee’s initiative) and retirement imposed by the employer (employer’s initiative). The rules, rights of refusal, and financial consequences vary greatly depending on the situation.
Voluntary retirement: a right that the employer cannot block
When an employee decides to liquidate their pension and leave the company, they are exercising a personal right. The employer has no power to refuse this decision. In practice, the employee notifies their departure, and the employment contract ends at the end of the notice period.
The company can, however, require compliance with the notice period stipulated by the collective agreement or the employment contract. The duration varies depending on the employee’s seniority and the sector of activity. An employee who leaves without respecting this notice period could face a compensation claim from the employer.
To fully understand the conditions for refusing a retirement departure, it is essential to distinguish between what falls under the employee’s choice (always free) and what falls under the employer’s initiative (regulated by strict age thresholds).
The employee who voluntarily retires receives a retirement departure indemnity. Its amount depends on the seniority in the company and the provisions of the applicable collective agreement. This indemnity is often lower than the indemnity paid when the employer takes the initiative to retire the employee.
Retirement imposed by the employer: age thresholds that change everything
The legal situation shifts when it is the employer who wishes to terminate the employment contract due to retirement. Here, the employee can refuse in certain cases, and the employer must follow a precise procedure.
The employee is between 67 and 69 years old
The employer can inquire in writing about the employee’s intention to retire. This request must be made three months before the employee’s birthday (67 years, then each year until 69 years). The employee then has one month to respond.
- In case of the employee’s refusal, the employer cannot impose retirement. The contract continues normally, and the same question can be asked the following year.
- If the employee agrees, the employer initiates the retirement procedure with a notice period to be respected.
- For a protected employee (union representative, member of the CSE), the employer must also obtain authorization from the labor inspectorate before any retirement.
The employee is 70 years old or older
From the age of 70, the situation changes radically. The employer can impose retirement without the employee being able to oppose it. No collective agreement can lower this threshold below 67 years.
The employee retired in this context receives an indemnity at least equal to the legal dismissal indemnity. The applicable notice period is that provided for dismissal, calculated based on seniority.
Progressive retirement: a different framework for employer refusal
Progressive retirement is a distinct arrangement from permanent departure. It allows an employee to reduce their working hours while receiving a portion of their pension. The employee continues to work part-time and does not leave the company.
Are you wondering if the employer can refuse this request? The answer is yes, but not arbitrarily. The refusal of a progressive retirement must be justified in writing. The employer must explain the reasons why the requested adjustment of working hours is incompatible with the company’s activity.
An unjustified refusal or one based on a vague reason can be contested by the employee.
Notice and indemnities: what varies according to the departure initiative
The distinction between voluntary departure and retirement imposed by the employer does not only change the right of refusal. It also modifies the notice regime and the amount of indemnities.
- In the case of a voluntary departure, the notice is that provided by the collective agreement or the contract. The indemnity depends on seniority, with thresholds set by law or the agreement.
- In the case of retirement imposed by the employer, the notice and indemnity follow the rules of dismissal. The indemnity is generally more favorable for the employee.
- In the case of progressive retirement, there is neither notice nor departure indemnity since the employment contract is not terminated, only adjusted.
An employee who is pressured to leave before reaching the legal age or without the procedure being followed can contest the termination of their contract. An irregular retirement (employee under 67 years, lack of written consultation, absence of authorization for a protected employee) can be requalified as dismissal without real and serious cause.
The key point to remember is summed up in one sentence: only the employee decides on their voluntary departure, and only age conditions the employer’s power. Between 67 and 69 years, the employee’s refusal is binding. From 70 years onwards, retirement can be imposed. Any pressure exerted outside this framework exposes the company to litigation before the labor court.
