Labour Law & Hr Consultant
Sr. Hr Executive
Korgaonkar K A
3rd July 2018
3rd July 2018 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.
7th July 2018 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.
8th July 2018 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.
8th July 2018 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?
10th July 2018 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
16th July 2018 From India, Kakinada
With due respect to you sir, I would like submit as under:
You said that the person is eligible for PF only (since he is having UAN number continuing in the same place).
Whereas in my post bearing #8 above I said, he is exempted employee under EPF.
I used the terminology as exempted employee mistakenly instead of excluded employee.
I herewith produce the para 2(f) (i)of the EPF Scheme verbatim for your kind reference:
(f) “excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew
the full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69.
Hope I am not wrong in answering in post bearing #8 above.
29th July 2018 From India, Mumbai
His take home salary at retirement was 16000 pm
What amount of gratuity is to be paid.?
Also, if my company decides, Is it possible to take his services further as a consultant and pay him consultation fees after deducting applicable TDS on payable amount?
Will there be any objection from PF or ESIC?
9th August 2018 From India, Aurangabad
Only the question is after retirement, since the person was the PF member, is it statutory on part of employer to deduct PF contribution and remit the same to his individual PF account ?
11th September 2018 From India, Nashik
His regular employment with the organization should comes to and end by giving formal retirement.
Following steps are to be taken for this purpose.
1. Do full and final settlement by paying all the dues and retirement benefits to the concerned employee.
2.Give new appointment letter on the basis of FTE by mentioning new remuneration which should be mutually agreed upon.This remuneration should be determined by considering MW act, Bonus act, Gratuity act etc.
3. Clearly mention all the terms and conditions, remunerations, leaves and other benefits on the appointment letter .
4.Since the retired employee has attained 58 yrs age, he is not eligible for pension benefit under Employees provident Fund. Therefore PF coverage or contributions not applicable.
5. After completion of FTE, the same employee can be retained by the organization on FTE basis by executing new FTE and agreement.
6.Physical fitness ( health) , mental alertness of the concerned employee must be checked up.
19th September 2018 From India, Mumbai