Labour Law & Hr Consultant
Consuting - Life Coaching
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Loginmiraclelogistics & Management) Pg
Soft Skill Trainer / Hr Consultant - India
+3 Others

Dear Seniors,
I would like to know that can an employee work after his retirement age of 58 years and if can work there are more queries for that , as stated below:-
1. Is he will be work for us a temporary or permanent employee ?
2. Does he work for the company for on roll or for off role ?
3. Who will generate the salary for him ?
4. Is his salary is being mentioned with the other employees salary or not ?
And here is the condition that we have to take him at any cost , so please suggest me the compliance and statuory part for him ?
Kindly advice.
Hi Manpreet
You can make an employee work after the age of 58. Take him as consultant - With proper Agreement should be made between him and the management with terms and condition of works,Payment.
Salary can be paid as cash vocher or Bank ( pay after deducting TDS).
If we take him as consultant - No need to take him on Payroll, no PF, bonus and other amenities.
Dear Mr. Anand,
Thank you for your valueable feedback.
I want to one more thing more that can we proceed him with the same salary or we have to revised him at his completion age of retirement ?
Or Is there is an any obligation for proceeding the same ?
Thank you again, in anticipation!!
Best Regards,
Manpreet Kaur
Sr. HR Executive
Cooperate HR
Hi Manpreet
Their is no problem continue with the same salary ,if the employee agrees to work. As he would under go Agreement .
Have mutual discussion with the employee and tell that YOY will revise his salary.
Dear Mr. Anand,
I would like to thank you for taking the time out of your busy scheduled to understand me about this point as mentioned above.
I would really appreciate your valueable inputs and discussed the same with the V.P , M.P and other seniors persons and they are also pleased to know that I try my best to figure out the solution.
Again! Thank you very much sir for your valuable time and effort.
Hi Manpreet
You are always welcome and as a member of citehr should help others - By sharing the Knowledge .
We too have 2 employees - whom we are continue after retirement.
If you want the agreement copy , can help you out.
I retired from Larsen & Toubro after 31 years of service. I was asked to continue for two more years as Consultant. The compensation calculated was 80% of last drawn salary. No other benefits are provided, unlike a regular employee . Everything is calculated and included in the compensation amount. Draw up an agreement where you should list out all his responsibilities. Being a consultant, at times the organisation may not empower the consultant to have executive powers, signing authority etc. These factors need to be discussed perhaps with a labour lawyer, as it may have legal implications.
Dear Mr. Manpreeet,

I realize that your query was pertaining to mostly the statutory and compliance part, however, I thought I'll make a few points to look at it in a different perspective.

1. When you attain an age like that of retirement, there is a lot of anxiety, which is mostly in mind. I am not getting into the cultural aspects, however, I'd just say, let's replace the word, "retired senior" with the word "Veteran" and "work" with "being engaged." Just this little thought in itself can change the whole thinking process that the senior man can bring his accrued experience and wisdom to the work place.

2. The advantage of veterans in your ranks

The most significant aspects of having veterans in your ranks is that they bring with them a sense of dedication and loyalty, strong work ethic, and their own brand of fundamental core values, integrity, character, focus, discipline and principles!

It is widely felt, that veterans during their course of professional life would have

received incredible training and have performed under pressure in some of the toughest

conditions, and so they can understand the important skills that make organization

successful. The general consideration is that veterans are professionals who in their

days as employees were taken to be high integrity professional those who have

achieved great things under several critical and trying conditions. They can never

be underestimated.

Veterans can actually be a significant source of Productivity and Talent. They can

add a great deal of value with their energy which can help strengthen the leadership


Veteran can be seriously good with mission driven projects and teamwork skills

But here’s the challenge: reasons companies might not hire veterans:

The first is inability to find extremely successful hardcore professional and when

you find them the worrying factor is their getting acclimatized to people and the new


They can be rigid in their thinking, not willing to easily accept what the young lot

would have to say on issues.

They could always take you back to their domain/industry experiences which could

be far too different from the present domain/industry

One could have trouble with skills mismatch and transformation, especially their

defensive stereotype thinking which young easily say is negative thinking

You can't deploy them easily on to whatever you want as you have to take several

things into consideration before making the move. They could range from physical -

mental, personal to professional.

Veteran do have another challenge and that's their temperament, and the feeling of

being the boss, just because of the number of years behind them.

Lastly would be the terms on which they can be employed, what would they be

offered including perks and the timings etc. Clearly there is a gap between the

recognition of veterans’ strengths and the ability to develop those strengths to the

needs of the company.

If the veteran has a significant amount of experience he could be chosen to be a “consultant” in a similar type of an industry, by which one can not only derive benefit of his experience, it could mean the company can use the veterans contacts and the goodwill created in the past. I've know several who wee retained by textile companies, metallurgy companies, finance companies, banks, insurance and IT too.

The ways in which they get engaged is as an “advisor” and they receive what companies call as a “Consulting Fee” which will be a certain bulk sum of money paid to them monthly with a 10% TDS deduction. They will also mutually fix the timings of availability and the fee is negotiated accordingly. The veteran will have to file IT Returns based on the expenditure incurred. The veteran is not eligible for any other deductions or benefits such as Medical Coverage, PF, Gratuity, etc that employees during the course of their employment.

If one is fortunate to get the right veteran on-board then the company stands to gain enormously.

Just for you to know, and please do not misunderstand me for you might think I am "blowing my own trumpet," I am retired for well over three years now, I have made the transition smoothly, I keep myself up-to-date on several topics, evolving all the time, I believe in being trendy, I never risk advising people, especially unsolicited, but certainly do all that is best to arouse inner spark in those who need my guidance. My nickname is "COACH" and am held in high regard both professionally, and accepted with respect as veteran.

Trust this information will be useful.

Best wishes,

Warm regards,
Dear Manpreet,
The suggestions to your queries would depend on your HR Policy. Irrespective of the policy, if you have it no problem, otherwise on the legal side there is no bar to continue him/her by extending the service conditions. However fixing his remuneration again your own discretion and the employees' acceptance. His EPF also can continue and presume not eligible for ESI & Bonus as he/she would have crossed long back. There are numerous employers who have their retirement age at 60 or even a few beyond 60 if their health permits. So you can as well extend upto 60 for the present and review to retain beyond as consultant or as contract employee beyond as you may think fit.
Whether to include in the Payroll or separately- the arrangement would depend on your decision on the above.
Mr. Anand, I would be highly obliged to you, if you could share the "Employment Contract After Retirement".
thank you TSK Raman - that was very useful. As I work in a school, often when we struggle for good qualified teachers, at times we invite retired teachers to come on part time. It is very facilitative as they already know the system, and in fact act as informal mentors - by their own choice!! And everyone seems happy with the arrangement.
Hi Manpreet Will send it to your by EOD to your gmail Id .....
dear manpreet,
As best said by Shri T.k.Raman, having a man with good value is a must for progress, the term veteran is the least said, they will help the company progress in all aspects by observation, the leaps and bounds can be crossed in ease and the real progress achieved if some valued veteran got in.
Since, you have said the age of retirement as 58, hopefully, they should have retired Govt. Employee, and they in several cases helped the institutions to progress in all aspects..
the terms of perks can be fixed with due respect and honour, there is no restriction in fixing the good, TDS should be deducted at source rather than after calculating afterwards, also, the annual lumpsum or consolidated amount can be sorted out in keeping their value and commitment... and everything is depend with the requirement ....
I suggest to keep the retired professional on contract basis. Keeping them as consultant means, you have to deduct 10% of their pay/fee as TDS and they will loose good chunk of earnings as the refund after IT return filing is onerous on them.
On contract basis, you can also cover them under PF (the EPS portion is not applicable for them). Leaves may decided as per your company policies.
Dear Mr. Pon1965,
I am engaged as a Consultant (am not an employee), I find the 10% TDS is much more beneficial. EPF etc., is out of question. You can get an engagement letter, needn't be a contract, with the arrangement of one month notice either ways. This system has been working pretty perfrectly, not only for retired people there are some consultants who prefer an arrangement of getting a consulting fee of Rs. 'x' annually and Rs. 'x/12 - 10% TDS.'
TSK. Raman
Dear Mr. Bernard Butty,
With due respects to you, I am unable to link your response to the subject under discussion Work after retirement age 58 years, unless you are suggesting that if any retired professional wants to be an entrepreneur, and that you are offering services that they could consider.
Your response will be highly appreciated.
Warm regards,
TSK. Raman
Senior staff can continue his/her work subject to the HR policy,about the promotion/seniority;
salary - it is mutual, because it is whom require the work.
But the senior person who is extended his service can not claim for promotion or salary hike in future.
Dear AS_Ravi,
Would like to seek a clarification with all the humility and ignorance I can summon.I fail to understand what this means as a response ..." hi, would appreciate if you could provide a copy of your EOD for my reference / use. thanks, in advance. regards, ravi "
For most like me EOD = End Of Day, what does this mean in your parlance.
Dear AS_Ravi,
Would like to seek a clarification with all the humility and ignorance I can summon.I fail to understand what this means as a response ..." hi, would appreciate if you could provide a copy of your EOD for my reference / use. thanks, in advance. regards, ravi "
For whom is this meant for and for most like me EOD = End Of Day, what does this mean in your parlance.
extreme apologies: it was meant to be a mail request to mr. anand for a copy on "employment contract after retirement". seriously, did not mean to offend. regards, ravi
Mr. Ravi,
That's OK.
I appreciate your response, however, all this, " extreme apologies: it was meant to be a mail request to Mr. Anand for a copy on "employment contract after retirement". seriously, did not mean to offend. regards, Ravi" makes me feel a little guilty, anyway, I didn't mean anything that should make you feel hurt.
TSK. Raman
Employers can engage employees after retirement bu on contract.The terms can be agreed depending on whether one will be working full time.
It is important that such provision be included in your HR policy including terms and payment. For example Universities employ professors after retirement on contract as professor emeritus.They are nor usually paid full salary and other employment benefits.
Dear Seniors, Thank you very much for your reply. Sir, I need to know that do we need to provide him a relieving letter on the day of his retirement ?
Hi Good Evening Manpreet Kaur
You have to provode him reliving letter , F & F , PF Claim form, Gratuity , Experience certificated and all other as per the policy.
Most importantly don't forget "Farewell party" for the contribution towards his service.
After a one or two days can undergo an agreement for taking him as consultant.
Very good response from all members and particularly useful tips from Mr N.K.Sundaram in the interest of the individuals retained in service after retirement and logical justifications for the utilisation of the experience and expertise of the veterans from Mr.T.S.K.Raman in the interest of the organization.Let me also share my views on the subject-matter.No Law prescribes the maximum age of employment and it is left to the discretion of the employer. If I were correct, no age of retirement for employees other than the Managing Director in Sony Corporation.May be it is an exception. But in actual practice, age of superannuation is fixed in the Standing Orders or Service Rules or Letter of Appointments as the case be.The pertinent question, therefore, is how to treat the services of a superannuated employee on his retention beyond the age of retirement.Ofcourse, there willbe no problem in the case of persons holding senior positions for they can be retained as consultants.In the case of lower cadre for example a clerical asst or an office boy, either their services can be extended beyond the age of superannuation or re-appointed afresh after havnig been allowed to retire, The pay and other perks are to be decided mutually.
Dear Mr. Anand,
I would like to ask you that if any employee has completed age of 58 years.
But I want to extend his service & keep him the part of PF & ESI benefits as previously after his retirement. It's possible or not.
Thus what will be the changes in filling PF Challan for particular employees?
How to do this, please suggest me.
Hope you will give your valuable time to me for this query.
Himanhsu Dwivedi
Sr. Executive-HR
One of our employee completing the superannuatuion
Age of 60 yrs.He is working a s Regional Manager-sales,
we would like to take him on contact me the the draft for aggrement
we will be very obliged to you if you send on my mail id

Thanks & Kind regards
Jayant Nisal
corporate Manager-HR/IR.
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