Labour Law & Hr Consultant
Sr. Hr Executive
Korgaonkar K A
From India, Salem
Though this is my personal opinion, that these type of rules is only to harass an individual because then may the Bank also tell that a person is not allowed to have more than one account in that Bank.
We cannot expect a senior citizen to run for opening an individual bank account and that too only for the sake of PF.
Apart the maintenance of the bank account may be troublesome for that retired person and unnecessarily the Bank will pose service charge for maintenance or less than minimum balance.
Then again the retired person will run from table to table to close that bank account!
Even this is not possible for any individual, for him it is more important to look for job, rather to seek an individual bank account.
From India, Kolkata
Our learned friend Nathrao is very much correct in saying that joint bank account is accepted by PF authority for settling the PF claim. He has now provided us the circular by EPFO to that effect.
However, there are two important things in it. First one is, the member should be a first holder in the joint bank account and another is, the account should be joint with spouse.
For Pension, this circular is not applicable and member has to open a pension account in his name in one of the five nationalized banks.
From India, Mumbai
I also strongly feel like our Senior learned member Umakanthan Sir that the query is pertaining to employment of person after retirement what are the due compliances. My comments to this query is as under:
I would like to ask some questions here.
If person is to be continued after retirement why he was retired by the company?
Was extension to his employment not possible?
How you can take a person on roll after retirement?
When you take a person after retirement, that is the meaning of retirement?
Now fact is that the person is employed after retirement. So what are the labour laws governed by him?
In my view:
1.He is entitled to wages as per MW rates.
2.He is to be paid wages not in cash.
3.His name is to be borne on muster roll and wage register.
4.He should be given all the benefits as given to other employees and he should not be subjected to discrimination.
5. He is exempted employee under EPF but not under ESIC if his wages are less than 21K.
6. Deduction of PTax from wages shall be effected as per prevailing law in State. In Maharashtra, PTax is exempted at the age age 65 completed.
There is no concept of off roll. Peon category you can not take him as consultant or settle this dues on voucher monthly.
Recently one of my clients faced a complaint by his retired employee. The retired employee was engaged on duly on humanitarian ground and he was paid on voucher every month. After serving 7+ years after retirement, due to his old age he was asked to sit at home. He claimed the company his full and final settlement including difference in wages as he was not paid as per MW, leave salary for 7+ years, gratuity etc.
I have quoted this example so that we HR fraternity should take some lessons out of such incidents around.
Members are requested to make comments on this posting of mine.
From India, Mumbai
This hiring was not based on good advice from HR.
May be the hiring was done on humanitarian grounds, but legal paper work and trial should have been ensured.
MW Act should have been complied with.
How has he claimed gratuity, was he not paid gratuity earlier?
From India, Pune
Very good discussion, on retired person's continuation in the same profession and same place. In my view:
- There is no rule to open a separate Bank Account.
- He is not eligible for PF pension. He is eligible for PF only (since he is having UAN number continuing in the same place).
- If he needs to open a bank account he may open a separate bank account any other bank.
- Employer has to bound the assurance policy.
- He is eligible for ESI if is below 21k.
Dr. PBS KUMAR
From India, Kakinada