Labour Law & Hr Consultant
Industrial Relations And Labour Laws

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Dear All, If we want to hire an employee after retirement then will the following things applicable to him
1. An employee gets retired from company and withdraws his PF & Gratuity then can we still consider him for regular employment?
2. If we hire him on a regular employment then do we need to deduct PF from his monthly salary?
3. Will they applicable for Gratuity again?
Pls let me know if any provision is there for same.
best Regds
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Gratuity and EPF Act stipulates retirement at 58 years and hence a retiree may not be eligible for benefits under these acts. with regard to employment, you can take them on consolidated salary roll for a period of one year. There is no provision of law is applicable for extension of services after 58 years of age.
Dear Sunil,
I beg to differ from our learned friend Kumar. No Law either prescribes the age of superannuation or prohibits the extension of services or reemployment of an employee after his retirement from the organization. These things are determined by the service regulations of the individual organization.
Regarding gratuity under the Payment of Gratuity Act,1972, if the services of the employee are extended beyond the age of superannuation, or he is re-employed continuously without any break, gratuity can be paid whenever his services get terminated later. Else, the employer can permit the employee to go on retirement on attaining the age of superannuation and pay him gratuity and treat subsequent service as a new one and pay gratuity when the occasion arises fulfilling the conditions for payment.
I think that in view of pension payment only the age limit for contribution to the EPF is restricted to 58 years of age. It does not prohibit employment beyond 58 years of age.
Regarding provident Fund, what the law states is that if you employ an employee who is already a Provident fund pensioner and who had withdrawn the PF accumulations, you can consider him as excluded employee, whereas if he is coming from an establishment to which EPF & MP Act does not apply or a government service, he should be covered under the PF now in your establishment even if he is 58 or 60. He may be drawing government pension but not a PF Pension and who are excluded are the persons who have withdrawn the PF accumulations on attaining the age of 55 and or a PF pensioner. Therefore, please see under which category this person comes.
However, an employee who has attained 58 years of age shall not be covered by Pension Fund. The employer's contribution of 12% should be paid to his Provident Fund without bifurcating the same as 8.33% to pension Fund and the remaining 3.67% to Provident Fund. The employer should also pay EDLI contribution at the prescribed rate of 0.5%
Madhu T K
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