Retaining an Employee Beyond Retirement Age
Our company is situated in Pune, and we are the channel partner of GRUNDFOS, manufacturing various pumps. Our company's policy states that the retirement age is 60 years. One of our employees is turning 60 in March 2020. He currently serves as a Regional Manager in Sales. The company wishes to retain him for an additional two years. However, we are unable to keep him on the regular payroll as our practice is to accept his resignation upon reaching 60 years and settle all dues. Additionally, we cannot deduct his Provident Fund as he is eligible for a pension.
Options for Retaining the Employee
Given the circumstances, how can we proceed to retain him? Currently, his gross salary is ₹62,000 per month. Typically, we engage him as a consultant with reduced compensation and working hours; his daily presence is required.
Feasibility of Retainer or Contractual Arrangement
Is it feasible to engage him on a retainer basis or a contractual arrangement? What would be the terms and conditions associated with such an agreement?
Your prompt advice on this matter would be greatly appreciated.
From India, Pune
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7Our company is situated in Pune, and we are the channel partner of GRUNDFOS, manufacturing various pumps. Our company's policy states that the retirement age is 60 years. One of our employees is turning 60 in March 2020. He currently serves as a Regional Manager in Sales. The company wishes to retain him for an additional two years. However, we are unable to keep him on the regular payroll as our practice is to accept his resignation upon reaching 60 years and settle all dues. Additionally, we cannot deduct his Provident Fund as he is eligible for a pension.
Options for Retaining the Employee
Given the circumstances, how can we proceed to retain him? Currently, his gross salary is ₹62,000 per month. Typically, we engage him as a consultant with reduced compensation and working hours; his daily presence is required.
Feasibility of Retainer or Contractual Arrangement
Is it feasible to engage him on a retainer basis or a contractual arrangement? What would be the terms and conditions associated with such an agreement?
Your prompt advice on this matter would be greatly appreciated.
From India, Pune
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You can go ahead with the proposal of taking him as a consultant with a consolidated salary and timings mutually agreed upon between your employer and him.
However, I need to mention one point. You mentioned that we used to take a resignation letter from him upon his retirement, which is not correct. Instead, you can give him a letter mentioning that the employee completed his service and superannuated upon reaching the age of 60 years. This letter has to be given to him at least six months before his retirement date.
From India, New Delhi
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However, I need to mention one point. You mentioned that we used to take a resignation letter from him upon his retirement, which is not correct. Instead, you can give him a letter mentioning that the employee completed his service and superannuated upon reaching the age of 60 years. This letter has to be given to him at least six months before his retirement date.
From India, New Delhi
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