General Manager-hr
General Manager, Corporate Hr
Self Employed
Lakshmi Sankar B
Manager - Personnel
Manager - Commercial & Legal
+6 Others

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Dear All Seniors, Please let me know whether a person aged 58 years (completed 58 Years) join a Company & getting Rs. 15,000 as Gross Salary. And Company fixed retirement age is 58 years, then
He is eligible for Provident Fund, Pension Fund & E.D.L.I. or Not ?
He is eligible for Bonus or not ?
He is eligible for E.S.I. or not ?
He is eligible for Gratuity or not ?
if the company does not give any benefit to employee as PF, ESI, Bonus, Gratuity, then it will be against factory act ?
Thanks & Regards,

From India, New Delhi
If you do not pay him the above benefit it will not be against Factories Act.The above benefits are governed by other Acts like EPF (MP) Act 1952,POB Act 1965, ESI Act 1948,POG Act 1972.
Except Pension scheme he is eligible for all benefits.
Varghese Mathew

From India, Thiruvananthapuram
The age of retirement/superannuation of an employee is specified either in the terms of contarct or by Industrial Employment and Sanding Orders Act.
Factories Act has nothning to do with it. However, employee pension scheme does not allow 58 yr person to become its member.
You need to define whether, the person is an employee of on retainership and decide accordingly.
Mritunjay Nath Sahu

From India, Vadodara
Dear Mr. MN Sahu Ji,
The Employee is retired from Govt. Service & getting pension. in my view he is eligible for all benefits under the following act :-
for PF under E.P.F. Act, 1952, for Bonus under Payment of Bonus Act, 1965, for E.S.I. under E.S.I. Act, 1948 and for Gratuity under Payment of Gratuity Act, 1972.
If I am wrong, Please correct it.

From India, New Delhi
Dear Mohan,
I fail to understand that when the superannuation age in your organization is 58 years, how any person can be allowed to join, in whatever capacity, who has completed 58 years. However, since you say he has joined your organization, there must be something mentioned in his offer letter whether the appointment is for a certain period. Depending upon that the benefits as detailed by you will be payable as per the Act/Rules/ Scheme by which they are governed. In some case it has been seen that the PF amount and account is transferred to later organization without making final withdrawal. In such case, the PF A/c number does not change and the contribution is credited to that account. It is withdrawn after relinquishment of the employee concerned / ceasation of employment.
Best wishes
AK Jain
HR Personnel

From India, Jabalpur
Except employees pension scheme under EPF Act and under some Welfare funds of state Govts , no other benefits are barred by age under any Labour law in India.For details pl call.
Varghese Mathew

From India, Thiruvananthapuram
Dear Mohan
When an employee complete 58 years he/she ceased to be an employee when the HR manuals of the company conveys the date of retirement is 58 years. Therefore no benefit accrues to the employee the day he attains 58 years.
Sreedharan PV

From India, Bangalore
Applicability of various benefits except for Pension scheme has already been submitted many members already and I do not wish to go in to it again. I wanted to point out that when the Company has fixed 58 years as retirement age how was this person employed? The Company has created a very bad precedent and possible problem for the future - any employee reaching 58 years in future can cite this and request continuation of employment. Also, the Company has demonstrated that its rules & policies are only for records and not for implementation and following. Can this Organisation now expect its employees to respect its rules & policies to be respected.
From India, Mumbai

First point that you have to be aware of is that there is no bar on employing people who have crossed the retirement age, which is giving them a status of "re-employed pensioner". Such persons are generally to be paid a consolidated amount only based on the decision of the management. Usually, companies pay a fee to cover travel cost, lunch cost etc. and charge the same as "Payment to Professional services" or "payment to consultants". This way, the money paid cannot be termed as salary, and only income tax is to be deducted at source. Employing specialists cannot be avoided, especially when a person carries special knowledge.

If the person is drawing pension from Central Government, he is said to be drawing the same from the consolidated fund of India. When such a person is employed by any Agency which meets its expenses out of the same fund i.e., the consolidated fund of India, then some restrictions and limitations apply (like restriction on payment of double dearness allowance etc.). All Central Government Departments come under this clause (but not the PSUs).

Being a private organization, you don't have much to worry and is bound only by the constitution of your company and have to generally play within the company act. It is advisable that the person's "appointment letter" be worded properly to deprive him an employee status, but give him a consultant / SME status. This will automatically avoid all your problems of PF, ESI etc. and make you clear.

Hope this clarifies.

From India, Bangalore
I have few questions :
1. If at all the employee continues after retirement age of 58, whether the employer is suppose to show him as Retired, and then new joinee. Or
2. Employee can continue work, without any break, for few more years, as per letter to be issued by employer.
3. If employee is shown as Retired, whether his present PF a/c continues, for further deposits OR he has to withdraw his PF, and open a fresh PF a/c.

From India, Mumbai

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