What should be the retirement age of an employee of a private company in Pune, Maharashtra, India ? Is there any statutory requirements or provision for the same ? If yes under which Act ?
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There is no such mandatory retirement age for private companies. State Governments and Central Government have separate service rules applicable to their employees in which the retirement age has been defined.
In a similar manner, for private organizations also, there can be service rules in which you can define the retirement age. Such service rules are sometimes called Standing Orders (which are mandatory in respect of workers), Employee handbook, HR Manual, etc.
Once these rules are made applicable to the employees by means of any communication and accepted by the employees, the same will become binding on them.
From India, Kannur
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4771In a similar manner, for private organizations also, there can be service rules in which you can define the retirement age. Such service rules are sometimes called Standing Orders (which are mandatory in respect of workers), Employee handbook, HR Manual, etc.
Once these rules are made applicable to the employees by means of any communication and accepted by the employees, the same will become binding on them.
From India, Kannur
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Dear colleague,
The Industrial Employment Standing Orders Act/Rules contain Model Standing Orders wherein the age of retirement is stated to be 58 years in the absence of any agreement between workers and the management to the contrary.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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The Industrial Employment Standing Orders Act/Rules contain Model Standing Orders wherein the age of retirement is stated to be 58 years in the absence of any agreement between workers and the management to the contrary.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Ok, Thanks Mr. Nagarkar for your sharing this information.
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Model Standing Orders are only drafts that can be adopted until the company gets its standing orders certified by the competent authority. If you are to follow the Model Standing Orders per se, you may have to follow the other orders in the Model as well, which include the confirmation of a worker who has completed three months in your establishment, without any appraisal. This confirmation is always considered to be a management prerogative.
From India, Kannur
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From India, Kannur
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Dear colleague,
The trend in the industry largely is to follow Model Standing Orders rather than go for certification, which is fraught with a lot of procedural hassles, particularly if you have an active union in the organization. Even if you go for it, very little change from MSO becomes possible in the face of objections from the union. Whether you have certified SO or MSO, the age of retirement is part of it, which has legal binding if the Act is applicable.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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The trend in the industry largely is to follow Model Standing Orders rather than go for certification, which is fraught with a lot of procedural hassles, particularly if you have an active union in the organization. Even if you go for it, very little change from MSO becomes possible in the face of objections from the union. Whether you have certified SO or MSO, the age of retirement is part of it, which has legal binding if the Act is applicable.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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To get rid-off the hassle, the industry should have get the Standing Orders certifications at the begining stage to avoid the counter action from the union.
From India, Mumbai
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From India, Mumbai
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Dear colleague,
Looking from a practical point of view and based on my experience, there is no significant gain in pursuing certification at any stage, especially considering the likely objections from the union or even from the certifying officer. What you may achieve are minor changes in procedural matters such as attendance, exit/entry, or additions to the list of misconducts, provided they do not conflict with existing laws.
In my opinion, MSOs (Management Services Organizations) are quite sufficient to address service conditions and their implementation, which is why a large number of organizations adhere to them.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Looking from a practical point of view and based on my experience, there is no significant gain in pursuing certification at any stage, especially considering the likely objections from the union or even from the certifying officer. What you may achieve are minor changes in procedural matters such as attendance, exit/entry, or additions to the list of misconducts, provided they do not conflict with existing laws.
In my opinion, MSOs (Management Services Organizations) are quite sufficient to address service conditions and their implementation, which is why a large number of organizations adhere to them.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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