Retirement / VRS

All Friends,

I would like to ask the answers for the following questions w.r.t the Retirement :

1) There are many employees in our organisation who has been working since 1979/80's and 90's. Many of them were issued the appointment letters without mentioning the suppernannuation age. Now since the senior management think that some of them should be retired, as most of them have crossed 50+ age, then what procedure shall we follow in this context. I mean, what right recommendation shall I give them i.e. the course of action?

2) Appointment letters issued since 1979 till date have various supperannuation age i.e. some of them have 55, some 58 some 60 (and if found medically unfit then the person concerned can be retired at 50 age). What should be the right age for supperannuation?

I would request you to give me your answers with proper supporting justifications, as I need to speak to my Director w.r.t the above mentioned two points.

Please cooperate and reply at the earliest.

Thanks

Rekha
HR Manager

Hi Rekha

The normal superannuation age is 58 years. In your posting you have not mentioned the category of employees. If they are workmen, changing the date of retirement mentioned in the appointment order attracts Sec 9A of the Industrial Disputes Act, which contemplates Notice for effecting change in service conditions.

For others, you can issue a fresh order making the retirement age uniform with a hope that they will not challenge it in any forum. If they are not covered under the Industrial Disputes Act, they can seek remedy only by filing civil suit claiming damages.

Thanks & Regards

Kalyan R
Manager - Personnel
WABCO-TVS (INDIA) Ltd
Mahindra World City
603 002.

Mobile: 9840942232

Hi Rekha,

The superannuation age is fixed at 58 in India.

But companies are allowed to have an age of 50 or above depending on their services.

What you can do is provide them with a better benefit package if they leave the company since the retirement age is 58. You can propose a person who is 50 three years of paid salary if he retires. The package will have to be defined according to your budget and company policies.

The other option is generate a list of non performers and get written letters as to why they shouldnt be fired. This will defnitely creat doubt in the employees mind before you take the initiate mentioned above.

There can be a circular passed with the managment approval fixing the age of superannuation to 58. This generally cant be contested being a norm across all the countries.

I will definitely discuss this and advise you later in the evening.

Regards,


AJ

Thanks Kalyan for your response.

Mr.AJ, i am waiting for your response.

Would request the other members also, to share their knowledge on the subject matter.

Thanks

Rekha