Assistant Manager - Hr
Hr & Compliance Incharge
Recruitment Executive
Aankit Anand
Agm - Hro, Compensation & Benefit Mgt,
Hr Manager
+7 Others

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Dear Seniors,
The retirement age for an employee in our company is 58 years.
Two of our employees will attain 58 years next year, as per company policy a person retires at the age of 58 years & we have to prepare his settlement & close his account. Can i reappoint a retired employee on regular rolls for full time.
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It is advisable to hire the employee as consultant/contract then rehiring on roll, the reason behind is that the company policy states to prepare the final settlement and close his account and you are contradicting the policy, so being the HR and compliance Incharge if you do, which shows a wrong signal to the other employees. A HR guy is a policy maker and not a policy changer.
This is my view, let other seniors also give their views.
I am totally agree with the views of Mr. Saji.
As you have mentioned yourself that your company policy is that if a person attends the age of 58 years then he / she got retired. It clearly means that after that age, an employee cannot be a regular employee of the company, if he / she can, then what is the benefit of Retirement Policy..?? So, question of reappoint of a retired employee on regular rolls is not possible.
This is a general situation which basically faced in industry. So, the best solution of this is, you can appoint these type of employees on yearly contract basis and they should be paid accordingly. By this way, you can utilize their experience and services with your organization.
There is nothing wrong in reappointing the employee on retirement. Except that you will have to settle his account and appoint him agains with necessary documents. Only thing is you must be satisfied rather the management must be satisfied taht due to his reappointment the company is benefited. You must substantiate this point. I can tell you the advantages of reappointing the retired employee.
1. cost of the employee is less.
2. workwise he will be same and you can get the work done
3. The company is not committed as anytime he can be discharged from the service.
4. Since he is an old employee you can expect the same loyalty, sincerity etc rather than a new employee.
5. Old employee knows very well about the company and you can rely on them.
Dear all,
Thanks for all your suggestions Seniors.
Dear Saji,
Am not contradicting i have just posted my query for suggestions, I know being HR & Compliance Incharge what is my responsibility i don't want to set a wrong example or contradict with any law,i have posted my query for advise from you seniors. Am not changing any policy or deviating from any policy.
Dear Seniors, If i appoint them as Consultant or on Contract, What about PF,EDLI & Gratuity do i have to enroll them for these benefits or not.
Dear MUBASHIRA, If you appoint such employees as Consultant or on Contractual Appointment, then EPF, EDLI or Gratuity will be not applicable on such appointment. But, let come more comments on this.
In my view, you can simply continue him by issuing an extension letter. No Act stops you and I don\'t see any malpractice in it.
Because as long as Employee is mentally and physically fit to perform you can continue him/her as an Employee.
company hire a retired employee as retainer or consultant and give his support and expertise in running the business and for the servicws rendered he will submit bills and finance may deduct IT accordingly. As consultant he is not eligible for any statutory benefits.
Dear Naziyasm,
You can go with what fellow members have said, like appointing the retired employee as consultant or on contract, even you can also rehire him on your rolls as well, because there is no law for private companies where any age limit is mentioned for retirement, you can give that particular employee an extension of services, even you can do full & final settlement of that employee and then rehire him by changing the clause of retirement in the appointment letter, as generally most of the appointment letter carries a clause of retirement with mentioned age of retirement you may change that age in the appointment letter.
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