Is there a legal difference between resignation and retirement?
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Is there a legal difference between resignation and retirement?
Union contract states that a full years dues will be taken from final paycheck upon resignation from school system. I retired 23 years employment and 62 years of age and was charged 566, a full years dues, in my final paycheck. I have argued that this is wrong, but have been stonewalled. Dues are 3 tier – local, state and national. State recognizes issues and agrees dues should have been prorated. They are processing a refund. National has yet to reply to my inquiry. Local claims the right to take monies based on the contract and it’s reference to resignation. Retirement and resignation are not the same, or are they?
Asked on January 5, 2018 under Employment Labor Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Legally, they are the same: it is voluntary (on the part of the employee) separation from employment. "Retirement" is a subcategory of resignation: it's resignation because you've put in your time and are either done with this career or with working entirely, rather than resigning due to taking a different job, or relocating with family, or to take care of a new child or disabled family member, etc., but that only goes to the reason or motive for the separation from employment. However, reason or motive is irrelevant in this context: the only distinction is between a voluntary end to employment (resignation, whether called resignation, quiting, or retirement) and an involuntary end (termination, lay-offs, firing).
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