Hi, As per company policy retirement age is 58 yrs but if the employer would like to continue the employment of the particular employee after retirement. What is the procedure to retain such employees? Are there any rules, the employer should follow?
From India, Kolkata
1From India, Kolkata
Dear Colleague,
The said employee can be very well engaged post his retirement as it is the prerogative of employer. However based on practical experience in the past the suggested process is :
1. Retirement to be given on the day of retirement
2. Do complete Full and Final settlement
3. Pay all dues and close accounts including gratuity if eligible
4. Settlement of PF may be done
5 Advice him to get scheme certificate under Employees Pension Scheme.
6. Then issue fresh employment contract as "Advisor " or "Consultant" for not exceeding 1 year at a time and if needed issue fresh order
Thus it becomes fresh appointment
This is a better way and there may be other suggestions from other colleagues which also may be evaluated
Dr P.Sivakumar
Doctor Siva Global HR
From India, Chennai
The said employee can be very well engaged post his retirement as it is the prerogative of employer. However based on practical experience in the past the suggested process is :
1. Retirement to be given on the day of retirement
2. Do complete Full and Final settlement
3. Pay all dues and close accounts including gratuity if eligible
4. Settlement of PF may be done
5 Advice him to get scheme certificate under Employees Pension Scheme.
6. Then issue fresh employment contract as "Advisor " or "Consultant" for not exceeding 1 year at a time and if needed issue fresh order
Thus it becomes fresh appointment
This is a better way and there may be other suggestions from other colleagues which also may be evaluated
Dr P.Sivakumar
Doctor Siva Global HR
From India, Chennai
As recommended above, please follow the same. If the employee is a member of EPFO, after settlement of PF he will be excluded employee. In the new appointment even the salary within PF statutory limit ( as on date 15,000/- per month ) no need to cover under EPFO as excluded employee. But if the gross salary is 21,000/- or below will be eligible for ESIC. Please check the Bonus status. Gratuity will be required to pay if the employee continues employment for 4 years and 240 days.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
www.usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
www.usdhrs.in
From India, New Delhi
One way to follow is as suggested by members. Second way forward is to give extension of — — years . Financial implications are quite easy to work out. Col.Suresh Rathi
From India, Delhi
From India, Delhi
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