Dear All,
I have one employee who is getting retired on 31st May-2017 from office Assistant position. Management want to extend his regular employment by one more year and as per company our retirement age is 60 yrs.
So can you pls help me to understand if we can extend regular employment by one year.
We do not want him to put on contract as he has to file his income return for the 10% TDS deduction which he has not done during his tenure.
Best Regds
Sunil G

From India, Pune
First thing first, Industrial Employment (Standing Orders) Act, 1946 stipulates the age of retirement as 58. Though retirement age of 60 may not be frowned upon by labour authorities.
If you wish to continue his services after retirement, you cannot definitely appoint him as employee. The only way is to appoint him as consultant. TDS will have to be deducted on monthly payment made, there is no choice unless you circumvent the laws.

From India, Mumbai
Dear Sunil, you can extend the service of an Employee who has attained the age of Super Annuation/Retirement by Specific Appointment Letter mentioning Terms & Conditions of Appointment.The Retired Employee can withdraw his EPF & avail EPS provided he is need not cover him under EPF, he becomes an excluded Employee.If there is continuity of Service, Gratuity is liable to be paid after completion of 1 Year service.If there is no continuity of Service his accounts/Full & Final including Gratuity to be paid.
If he is covered under ESI, he will continue to be covered irrespective of age/Retirement provided his Monthly Gross Salary is Rs21,000/- & below

From India, New Delhi
Dear All;
What the law prescribes is the minimum or the higher limit. For example minimum wages are minimum, employer can pay more than that but not less. Working hours are maximum 48 in a week, employer can prescribe a 36 hour week but not more than 48 hours a week. Similarly, under Standing Orders the age of superannuation can be 60, but employer can increase it to any extent. Employer cannot do contrary i.e. employer cannot superannuate an employee earlier than 60 years if that is the age of superannuation.
As for ESI, PF, Bonus, Gratuity etc the relevant provisions in that act will apply. These two things are separate and need not be mixed with each other.
Vibhakar Ramtirthkar

From India, Pune
Dear Vibhakar,
What you say is true for normative legislations; you can go above but not below the stipulated norms. Standing orders is directive act. It mentions that age of retirement will be on completion of 58 years, in absence of any award or agreement.
Such employee will have to continue his PF membership as there is no retirement age mentioned in the act & such employee was contributing PF member at time of retirement. He will contribute 12% & employer will contribute 3.67% as such employee will cease to be EPS member on attaining 58 years of age.

From India, Mumbai
Dear Shrikant Sir,
Excluded Employee as defined under Para 2(f) of the Employees' Provident Fund Scheme means an Employee who having been a member of the fund has withdrawn the full amount of accumulation in the fund on Retirement from service after attaining the age of 55 years. If a retired person is appointed and who has withdrawn his PF before joining, there is no need to contribute to PF.

From India, New Delhi
Am aware of the provision. Can an employee withdraw PF on last day of working & join the same org the next day?
From India, Mumbai
This practice is well in my company.There is no hard and first rule not to extent any more year after attaining the retirement. It is wise to settle all the statutory dues like PF/Gratuity etc due as on 31.05 2017. Appoint him in afresh, and he may be paid his salary in separate pay sheet, without deducting the the PF/ESI etc. And he shall not also be entitled for Gratuity for extended period. Leave like EL/SL may also be extended to him.
I am at the age of 65, is still with my company as Business Associates.

From India, Kolkata
Dear Shrikant Sir,
In this particular case Employee is Retiring from Service after attaining the age of Retirement.Consequently, he can withdraw his PF Accumulations in the Month in which he is Retiring.Please peruse the attachment regarding " Settlement of PF & Pension on the day of Retirement"
After retirement & withdrawal of PF Accumulations, he becomes an "Excluded Employee" & no bar to take up job again in the same Company or else where.

From India, New Delhi

Attached Files (Download Requires Membership)
File Type: docx Settlement of PF & Pension on the day of Retirement.docx (11.5 KB, 242 views)

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