Dear Mr. Madhu T K,
Q1. Where can I find the reference for retirement age?
Ans: For information on the retirement age, please refer to the state-specified Model Standing Orders or Clause-3 of Schedule – 1[B] of the Central Rules. The retirement age is typically noted as either 58 or 60 [in some states ]. For your understanding, the Central Rules MSO is provided below:
“The age of superannuation for a workman is determined by mutual agreement between the employer and the employee as stated in a binding agreement, settlement, or award. In the absence of such an agreed age, retirement or superannuation occurs when the workman reaches 58 years of age.”
If there is a question about whether the retirement age outlined in the MSO applies even if there's an agreement or settlement between the employee and employer for a lesser age, consider the following judgments. These are cases in which companies have failed, from the certifying authority to the Supreme Court, to rely on agreed terms or a younger age than what is specified in the Model Standing Orders.
1. The Management Of M/S Grasim ... vs The General Secretary on 5 July, 2022 [ HC Division Bench ]
2. Management of Federal Mogul Goetz India Pvt Ltd., Vs ALC [ HC – Note: an SLP filed by Mgt. before the Supreme Court was rejected ]
Q2. Is there a rule or judgment that mandates private establishments to provide employment until the age of 58?
Ans: While there is no explicit rule stating that private establishments must provide employment until the age of 58, it is implied from the above-referenced judgments that the age specified in the Model Standing Orders is binding for companies, failing which same is voidable.
Hope I made it clear to you.
From India, Bangalore
17Q1. Where can I find the reference for retirement age?
Ans: For information on the retirement age, please refer to the state-specified Model Standing Orders or Clause-3 of Schedule – 1[B] of the Central Rules. The retirement age is typically noted as either 58 or 60 [in some states ]. For your understanding, the Central Rules MSO is provided below:
“The age of superannuation for a workman is determined by mutual agreement between the employer and the employee as stated in a binding agreement, settlement, or award. In the absence of such an agreed age, retirement or superannuation occurs when the workman reaches 58 years of age.”
If there is a question about whether the retirement age outlined in the MSO applies even if there's an agreement or settlement between the employee and employer for a lesser age, consider the following judgments. These are cases in which companies have failed, from the certifying authority to the Supreme Court, to rely on agreed terms or a younger age than what is specified in the Model Standing Orders.
1. The Management Of M/S Grasim ... vs The General Secretary on 5 July, 2022 [ HC Division Bench ]
2. Management of Federal Mogul Goetz India Pvt Ltd., Vs ALC [ HC – Note: an SLP filed by Mgt. before the Supreme Court was rejected ]
Q2. Is there a rule or judgment that mandates private establishments to provide employment until the age of 58?
Ans: While there is no explicit rule stating that private establishments must provide employment until the age of 58, it is implied from the above-referenced judgments that the age specified in the Model Standing Orders is binding for companies, failing which same is voidable.
Hope I made it clear to you.
From India, Bangalore
Mr Srinivas, the Model Standing Order is a model only and that cannot be accepted as a final (certified) standing orders. In the instant case there exists a retirement age as per their appointment orders and that is binding as said in the Model itself. When there exists a clause about retirement age in the contract of employment and in the absence of a certified standing orders which provides for the same, the retirement age should be the one as per appointment order only. The retirement age is one of the terms and conditions of employment and it is accepted by the employee and is binding on him.
I have not gone through the judgment in detail due to some preoccupied engagements but will get back with detailed note on it. Thank you for sharing the judgment. Please chare the citation for easy reference.
From India, Kannur
I have not gone through the judgment in detail due to some preoccupied engagements but will get back with detailed note on it. Thank you for sharing the judgment. Please chare the citation for easy reference.
From India, Kannur
Dear Sir,
I would like to emphasize the importance of ensuring that certified standing order provisions align with the framework outlined in the Model Standing Orders (MSO). Any deviation or exceeding of the provisions of the MSO by the certifying authority renders such actions null and void. This issue was observed in the case of "Geep Industrial Syndicate vs. Geep Industrial Syndicate (1999) ILR 1999 KAR Equivalent citations -3258, 1999 (6) KarLJ 521, (1999) IILLJ 1197 Kant" which I encourage you to review.
Both employees and employers have the freedom to include terms and conditions of service and mutually agree upon them. However, these terms must be fair, just, and within the framework of the law of the land. It is worth noting the " Federal Mogul Goetz India Pvt Ltd., Vs ALC " case, where it was held that settlements between parties can be disregarded in exceptional circumstances if they are demonstrably unjust, unfair, and contrary to the spirit and basic principles of the agreement.
Furthermore, way back in the year 1959 itself, in the case of "Guest, Keen, Williams Private Ltd vs. P. J. Sterling and Others (1959)" Supreme Court highlighted various factors to consider when determining a retirement age. These factors include the nature of assigned work, wage structure, retirement benefits, amenities provided, climate conditions, and prevailing practices in comparable industries within the same region.
Therefore, it is not surprising that most private industries have chosen 58 years as the retirement age, which is also the base age mentioned in the MSO. Otherwise, they could potentially take undue advantage of the situation by setting an earlier retirement age, such as 40 years, and asking employees to sign and acknowledge it, only to send them away when they reach the age of 40.
From India, Bangalore
I would like to emphasize the importance of ensuring that certified standing order provisions align with the framework outlined in the Model Standing Orders (MSO). Any deviation or exceeding of the provisions of the MSO by the certifying authority renders such actions null and void. This issue was observed in the case of "Geep Industrial Syndicate vs. Geep Industrial Syndicate (1999) ILR 1999 KAR Equivalent citations -3258, 1999 (6) KarLJ 521, (1999) IILLJ 1197 Kant" which I encourage you to review.
Both employees and employers have the freedom to include terms and conditions of service and mutually agree upon them. However, these terms must be fair, just, and within the framework of the law of the land. It is worth noting the " Federal Mogul Goetz India Pvt Ltd., Vs ALC " case, where it was held that settlements between parties can be disregarded in exceptional circumstances if they are demonstrably unjust, unfair, and contrary to the spirit and basic principles of the agreement.
Furthermore, way back in the year 1959 itself, in the case of "Guest, Keen, Williams Private Ltd vs. P. J. Sterling and Others (1959)" Supreme Court highlighted various factors to consider when determining a retirement age. These factors include the nature of assigned work, wage structure, retirement benefits, amenities provided, climate conditions, and prevailing practices in comparable industries within the same region.
Therefore, it is not surprising that most private industries have chosen 58 years as the retirement age, which is also the base age mentioned in the MSO. Otherwise, they could potentially take undue advantage of the situation by setting an earlier retirement age, such as 40 years, and asking employees to sign and acknowledge it, only to send them away when they reach the age of 40.
From India, Bangalore
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