Dear HR Professionals,
I have one query. One of my employees is retiring from his service tomorrow. i.e dated 06/10/2023 as per the retirement policy of our companies - we want to take him as a consultant by paying a professional fee. Kindly advise what steps to follow and send me a draft letter of the same. Waiting for your quick response.
Thanks & Regards
Sanjay
From India, Mumbai
I have one query. One of my employees is retiring from his service tomorrow. i.e dated 06/10/2023 as per the retirement policy of our companies - we want to take him as a consultant by paying a professional fee. Kindly advise what steps to follow and send me a draft letter of the same. Waiting for your quick response.
Thanks & Regards
Sanjay
From India, Mumbai
I hope you can refer to this for the above query https://www.citehr.com/641492-retirement-law-extension-service-after-retirement-india.html
From India, Kochi
10From India, Kochi
As pointed out by Ms Lakshmi Priya, the matter was discussed earlier also. Therefore, you can go through the link given. To add further I would like to say that a consultant is a person who can be consulted for advises and guidance. If he is paid professional fees, he should be treated as professional. As such, he should not be asked to come to your office every day at 9 am or the scheduled time the other employees report, remain there for 8 hours, from Monday to Friday or Saturday. He should not be asked to fill a leave form whenever he has to take a leave. He should not be asked to follow the HR protocols anyway. Still, do you want to appoint him as a 'consultant' paying a 'professional fee' rather than employing as an employee paying salary?
From India, Kannur
From India, Kannur
The retired employee can be taken on a retainership agreement for a fixed period of time, instead of hiring as consultant.
From India, Kolkata
From India, Kolkata
Both are same, whether it is retainership or consultancy, there will not exist any employee employer relationship and as such you can not make him liable to the policies and rules of the company applicable to other employees. If you make these 'consultants' or 'retainers' also follow the rules, then they will be treated as employees and all statutory dues as applicable to other employees, including gratuity subject to qualifying service, will have to be paid to them also. On the other hand, you can very well appoint them as employee on a fixed term contract, say for one year. But still, for that year, he should be paid ESI (if the salary/ remuneration is not more than Rs 21000), Bonus and leave benefits. After all, how much will it cost for the company? If not covered by ESI, then what will be the medical and other compensation if something happens to the employee? It will be huge amount. Moreover, you are giving him another term after his lengthy and meritorious service. No employer would give a bad employee an opportunity to work for an extended period after his superannuation. Only good employees who were loyal to the organisation would be given extension. Then why should he be kept away from at least statutory contributions?
From India, Kannur
From India, Kannur
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Appointment letter-format.d oc
Flow Chart for Recruitment till retirement.xls