How does the generation pact work?

The details of the Generation Pact are tailored to the situation on the floor. Think about agreements on the number of working days, the redistribution of tasks and the transfer of knowledge to younger colleagues. Within the metal and engineering sector, the arrangement is designed to be good not only for your people, but also for your company. Employees retire voluntarily, without financial loss, and you retain their professionalism and pension accrual. The costs? They are partly absorbed through sectoral schemes, making it financially viable even for smaller companies. You as the employer are the deciding factor and decide whether you agree to the employee’s request. If so, you enter into discussions together about the hours, work and salary.

What many entrepreneurs in the metal and engineering sector do not know is that there is room for customized agreements within the collective bargaining agreement. For example, you can combine the generation pact with part-time retirement, use older employees as mentors or adjust work schedules.

The generation pact is more than just an arrangement. It is a smart way to future-proof your company. By retaining experience, reducing workload and making room for new inflow, you kill several birds with one stone. Want more information about this article, or have other questions? Check our website