Dr. PBS KUMAR ji,
With due respect to you sir, I would like submit as under:
You said that the person is eligible for PF only (since he is having UAN number continuing in the same place).
Whereas in my post bearing #8 above I said, he is exempted employee under EPF.
I used the terminology as exempted employee mistakenly instead of excluded employee.
I herewith produce the para 2(f) (i)of the EPF Scheme verbatim for your kind reference:
(f) “excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew
the full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69.
Hope I am not wrong in answering in post bearing #8 above.
From India, Mumbai
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2584With due respect to you sir, I would like submit as under:
You said that the person is eligible for PF only (since he is having UAN number continuing in the same place).
Whereas in my post bearing #8 above I said, he is exempted employee under EPF.
I used the terminology as exempted employee mistakenly instead of excluded employee.
I herewith produce the para 2(f) (i)of the EPF Scheme verbatim for your kind reference:
(f) “excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew
the full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69.
Hope I am not wrong in answering in post bearing #8 above.
From India, Mumbai
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I have the same case in my organization. One of our Accounts Assistants retired after completing 9 years of service and reaching 60 years of age. His take-home salary at retirement was 16,000 per month. What amount of gratuity is to be paid?
Also, if my company decides, is it possible to retain his services further as a consultant and pay him consultation fees after deducting applicable TDS on the payable amount? Will there be any objection from PF or ESIC?
From India, Aurangabad
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Also, if my company decides, is it possible to retain his services further as a consultant and pay him consultation fees after deducting applicable TDS on the payable amount? Will there be any objection from PF or ESIC?
From India, Aurangabad
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We have a practice/system to engage retired persons based on the requirements. After management approvals, we extend their service for 2 years by issuing a fixed-period appointment order. When fixing their remuneration, statutory benefits like PF, Gratuity, etc., are calculated based on their last drawn salary and considered in the consolidated salary. Only Professional Tax and TDS are deducted.
The question is, after retirement, since the person was a PF member, is it mandatory for the employer to deduct PF contributions and remit the same to their individual PF account?
Shikh.I.Y. Manager HR.
From India, Nashik
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The question is, after retirement, since the person was a PF member, is it mandatory for the employer to deduct PF contributions and remit the same to their individual PF account?
Shikh.I.Y. Manager HR.
From India, Nashik
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When an employee is retired from his service at the age of 58 or 60, he can be re-appointed on the basis of Fixed Term Employment (FTE) for a certain period of time (say for one year or two years). His regular employment with the organization should come to an end by giving formal retirement. Following steps are to be taken for this purpose.
1. Do a full and final settlement by paying all the dues and retirement benefits to the concerned employee.
2. Give a new appointment letter on the basis of FTE by mentioning the new remuneration which should be mutually agreed upon. This remuneration should be determined by considering MW act, Bonus act, Gratuity act, etc.
3. Clearly mention all the terms and conditions, remunerations, leaves, and other benefits in the appointment letter.
4. Since the retired employee has attained 58 years of age, he is not eligible for pension benefits under the Employees Provident Fund. Therefore, PF coverage or contributions are not applicable.
5. After the completion of FTE, the same employee can be retained by the organization on an FTE basis by executing a new FTE agreement.
6. Physical fitness (health), mental alertness of the concerned employee must be checked up.
From India, Mumbai
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1. Do a full and final settlement by paying all the dues and retirement benefits to the concerned employee.
2. Give a new appointment letter on the basis of FTE by mentioning the new remuneration which should be mutually agreed upon. This remuneration should be determined by considering MW act, Bonus act, Gratuity act, etc.
3. Clearly mention all the terms and conditions, remunerations, leaves, and other benefits in the appointment letter.
4. Since the retired employee has attained 58 years of age, he is not eligible for pension benefits under the Employees Provident Fund. Therefore, PF coverage or contributions are not applicable.
5. After the completion of FTE, the same employee can be retained by the organization on an FTE basis by executing a new FTE agreement.
6. Physical fitness (health), mental alertness of the concerned employee must be checked up.
From India, Mumbai
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