When General Motors last month offered buyouts and early retirement packages to 113,000 hourly workers, the move focused new attention on a key aspect of the continually evolving relationship between employers and employees.
A grandfather clause (or grandfather policy) is a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases. Those exempt from the new rule are said to have grandfather rights or acquired rights. grandfather clause (or grandfather policy) is a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases. Those exempt from the new rule are said to have grandfather rights or acquired rights.
What is a Grandfather Clause. A grandfather clause is a provision in which businesses, enterprises, or class of persons are exempt from the provisions of a new rule, regulation, or law. Usually, a grandfather clause specifies a date for the division of exempted entities, making it clear that situations that occur from that date forward are subject to the new regulations. In basic terms, a grandfather clause allows the current state of something to remain unchanged, regardless of the policy change.