Dinesh Divekar
Business Mentor, Consultant And Trainer
Bharat Gera
Principal Hr Consultant
Asst. Manager - Hr & Admin
Srinath Sai Ram
Hr Manager
Asst Manager Hr & Admin
+1 Other

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Dear Seniors,
We have to ask one of our old employee to take early retirement, as he is pretty old and working in the technical department.
I would like to know what benefits we have to give him if he gets agree to take early retirement.
Many thanks in advance.
Best Regards
Arshad Rahmani
Manager Administration

Dear Arshad,

What is the designation of that person? How many years has he worked in the company? Though he works in technical department, can you utilise his services for training the young employees?

Just because someone is old, you cannot tell that person to quit. However, you can retire that person provided his performance is not up to the mark or he is unable to learn the skill set that is required for the job. For example, many old employees in the public sector cannot operate computers with the required speed. They are too slow in their work. Such employees are either placed in some other department or told to quit the company.

As far as remuneration is concerned, he would be eligible for gratuity. However, it is up to your company to give the severance pay. For how many months it could be that we the outsiders cannot assess.


Dinesh Divekar

Dear Arshad.
I agree with Mr.Dinesh's view points. In case the organization is on complete automation / change orientation process and the capabilities of certain aged employees are not meeting the required parameters then better to plan for a VRS process which shall be beneficiary for both the employee & employer, failing which a wrong message will go in to the market and Organization will be seen as non ethical & with inhuman practices.
Now the company might have grown leafs and bounds but these are the people who have put their heart & soul for the development of the company hence they are to be treated with utmost respect. As suggested by Mr.Dinesh better to entrust them the responsibility of trainer / mentor etc or else relieve them with good package.

Dear Rahmaa, you have not mentioned about the Retirement age applicable to the Employee in question.What do you mean by "He is Pretty Old" inspite of Holding the Position of "Manager-Administration" you are addressing an Employee who has served your organization as pretty old which does not go well.This reflects your mindset.Have you not heard"Senior Citizen"
Please refer the standing orders of your company and possibly provide the severance pay benefit.
1. What is the age of retirement in your Company? Has the employee concerned has crossed that age limit?
2. If he has not crossed that age limit, pay him full salary ( you can negotiate for half salary also) & gratuity for the balance period and ask him to leave respectfully. Give him a farewell party also.
3. If he has crossed that limit then give him all benefits and one month salary and ask him to leave. All these should be done respectfully.
4. Before taking any such action, please speak to him & discuss the matter.
With warm Regards
Bharat Gera

Most early retirement offers include a severance package that is based on on the annual salary and years of service at the company. Some early retirement offers include employer-sponsored life insurance.
Dear Arshad Rahmani, For early retirement, above inputs are great. Apart from that, i suggest you give employment to his child.
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