Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Phaniacp
Hr Person
Talentsorcerer
Talent Acquisition Expert
+2 Others

Dear Seniors,
We have one of our senior employee retiring on 31st March 2015. From 1st April onwards we are planning to continue his service under different category.
1. Can we hire him as an consultant and appoint him with consolidated pay.
2. Can we hire him under contract for 1 or 2 years. If so, what is the pay structure and what are the components applicable. How would the letter be.
Kindly enlighten.
dear friend,

Hiring the retired senior employer in the same cadre is good to proceed without any hiccups only for a short term, hire the employee as a consultant and pay an honorarium, this is a better solution rather than hiring to the same category.. also, get one of your employees present, serving employee trained well for better solution. In the long run always kindly keep one employee well trained as the organisation should not suffer on retiring of a senior employee, the eventuality of vacuum should not bother an organisation.

Hiring the employee and paying honorarium is recommended for the following reasons :

1) You cannot make him responsible for the work/service

2) The senior employee may take leave for his health and family commitments as the employee may find time of his own

3) You cannot compel the employee to be in office by the office hours, put in service/work as in office

4) The Employee cannot be considered as signatory for official circulars/orders as the employee retired and no responsibility, the onus clearly rest with the present one, who may contradict in some issues

5) the present employee should not be made as a mole in the eyes of the retired employee this is even though internal this as a boomerang effect

Best of luck...

Keep the present shine, some times we must take the help but should not be a dependent as a whole..
Mahi K: You can and should appoint him as a consultant with a 'consulting fee' payment model. The consulting contract needs to specify the exact details of the delivery, etc and you'll find a few formats here or through a Google search.
Contracts have a specified tenure so you can hire him as a consultant for a definitive tenure.
Hope this helps.
Gopinath Varahamurthi - Your response is confusing, at the best. What Mahi.K is looking for is a clear, unambiguous response on if an employee can be hired as a consultant, after date of retirement. Learning and Development of employees is not the question.

Honorarium is paid 'in honor of' - when the payment is not expected. You think a consultant will work for free? And on your observations, my comments in brackets, below:

1) You cannot make him responsible for the work/service [In a contract, you can]

2) The senior employee may take leave for his health and family commitments as the employee may find time of his own [Isn't this a moot point?]

3) You cannot compel the employee to be in office by the office hours, put in service/work as in office [You can. Contract's specify the location, reporting (in this case, whom the completion of work needs to be submitted to) as well as needs a 'voucher' to be signed off, permitting payment]

4) The Employee cannot be considered as signatory for official circulars/orders as the employee retired and no responsibility, the onus clearly rest with the present one, who may contradict in some issues [Consultant's cannot be official signatories, nor claim to be the representative of the organization- Contract will specify this]

5) the present employee should not be made as a mole in the eyes of the retired employee this is even though internal this as a boomerang effect [Mole? Boomerang?]
No problem, you can hire on contract basis or as consultant to come and do your work as per your requirement in intervals. Regarding remuneration, you can fix reasonable as per mutual agreement.
D.Gurumurthy
HR & IR Consultant
Dear talentsorcerer,

Please go through fully, you have raised questions and know fully what it means..

You can hire as a consultant or contract worker.. in particular ex-employee..that is good but not fully...

1) a contract worker do fully what the original employer want to do, yet, in case of going wrong do you want to fix them for the faults? contract in official work and contract on ground are different..a financial fault can be fixed but not entirely the work carried over in fault..

2) can you fix the ex-employee for your official work and the time of your office, when contract is being signed certainly there is a time of work is it daily or hourly? your contract need be clear, your office time and the contract time may differ, you may put your employee to do some work on extra ordinary hours can you compel a contract worker at your will?

3) A contracted worker never sign on you (the official works) or on your behalf..you cannot delegate powers on a contractor..

4) present worker need be nourished, if you fail to nourish present employee by taking the help of the ex-employee the talent and work efficiency go down, this is called double edged sword, boomerang effect.. the inefficiency is a pest...

thank you thank you ...all the best...
Yes, No problem, you can hire as consultant but You can not force him to work for 8 hours as consultant are generally kept on call basis on a certain fixed fee for per visit further you may keep him on full time basis as per mutual agreement and you may keep him initially for a term of three months which is further extendable .The fee payable to the consultant shall be subject to the tax deductions. again he shall not be entitled for other benefits like PF , Gratuity, Medical etc. and one day leave is generally allowed in a month in their terms of appointment. In Govt. Organisation the max. age limit for consultants is 65 years . Regarding remuneration, you can fix reasonable as per mutual agreement.
Dear Seniors,
Would like to add little pinch of salt.
Mr. Gurumuthy and Mr. Varahamurthi have valid points. They apt according to the requirement.
How you get the work done is purely on basis of how a retainer/ consultant contract is made ...If the contract is made in line of business objectives yes we can make contractor responsible but we cannot tie him to it 100% as we done for an employee.
I think you should hire him as a consultant or altenatively found someone to replace him. There are a number of useful sources for hiring good talents. I found one site where you can find these resources: http://www.lifecareer.com/jobs/
Engaging a person after retirement on same terms and conditions is nothing but extension of service. It brings down morale of officers down line in promotion which makes an organisation a sick organisation. When you knew such an officer is dur for retirement you should have groomed others in line well in advance. In the circumstances engage him only as consultant to guide you as and when needed. Consolidated salary may be offered to him for fixed period. Otherwise officer in line below will look for openings outside and you will loose experienced talent.
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