Age limit

Dear Friends

In our factory one of our employee’s age is 60yrs. He has completed is retirement age but the company want him to work with us, the employee is willing to work with us.
Can the factory Law permits to employ a worker who age is 60 and above
Please clarify this for me.


Regards….Raja

Dear Raja,

Factories Act does not have any restriction against the upper age limit. There is no bar on a person to work after sixty under the Factories Act, it is only the entry age which is regulated.

The retirement age is normally guided by the Service rules of individual Organisations. Some has it at 58, some at 60 some at 65 and there is no legal restriction in this regard.

Hence, the Management is free to fix the retirement age. Once, it is fixed, the retirement age is given strictly adhered to, since any deviation can create a precedent. For this reason there is usually strict and well laid out procedures regarding extension, which are usually as follows:

An application for extension is forwarded by the Departmental Head to the Top Management, which approves the same and forwards it to the CEO who sanctions the same. Some Companies even requires the Sanction from a Director.

This extension is usually given for a fixed period as renewable/non-renewable contract as either in the same rank or as a consultant and the option is availble for Management Level Employees only.

Regards,
SC

The retirment age is mentioned in the service rules, or the Standing orders of the company. Some organisations also have a provision regarding grant of extension of one or two years. Please check the provisions.

The point to remember is not to create a precedent. This becomes a sore point for many and can result in organisational problems. Why extension to one, and not the other?

The best course of action would be to allow the person to retire and then hire his services on contractual terms for a specific period. The designation, consolidated payment, and duties can be specified.

Cyril

Dear Raja,
your query is interesting,
if any employee of an organization want to continue even after age limit and the organization is professional and not any government or semi government organization then we can take that employee as staff though not; in line hierarchy.
employee will be paid may not be on pay roll.
think on this.

regards.

Dr. Sarang Bhola

Dear all,

I am HR executive in a small sized Pvt. Ltd Company (20 employees) which is Importer and Dealer for consumer durables. This company was incorporated on 1st January 2008.

Since this Company is emerged from the previously existing company, most of the staff members are from old company and management has more lineant attitude towards them.

Out of those employees, 1 employee has completed 60 years which is our retirement age as per our HR policy. This employee basically handles operations between our wearhouses and stores. Management want to retain this employee.

What procedure should I follow so that I can achieve the managemnt desire within the lawful framework? Is there any option for this?

Please reply as early as possible.

With Regards,

Jasmine

Would like to add one more question to Jasmine's query. If his service is continued can he continue contributing the PF?


Regards
Saritha

Dear All,

If the company does not have particular policy about age of retirement then what will be the age of retirement?

There are 2 employees who have already crossed age of 58 years but not crossed 60 years and the top management wants to retire these employees. The employees does not agree to retire and even threatening for legal action as these employees are saying that the age limit for retirement is 60 years as per factories act. I have gone through the Factories Act, couldn't find anything.

Please help with your suggestion at the earliest.

With regards,

Avinash K.