pranay patil

If we like to Rehire employee after retirement (after 60 years) as consultant then we can keep leaves, insurance benefit and Reimbursement of expenses in his contract or Not? what is period of extension allowed as per law. Taxes like income tax, Profession tax and GST applicable or Not? He need to invoice monthly basis or Not ?
From India, Delhi
Labour Law & Hr Consultant
Seasoned Ir Professional
Hr Manager
Pranay Patil
Manager Human Resources


Dear Pranay,
When you engage a person as consultant on retainer basis this arrangement creates a contract for service only in which there would be no employer-employee relationship. The question of service tax would arise only when the total retainer fees per annum is Rs.2o lakh or more. What the contractee i.e the person who gets the service of the retainer has to is to deduct TDS from the retainer fee payable.
This equally applies to an employee whose services are retained post retirement by the former employer on retainer basis.

From India, Salem

Adding to our learned member, Mr Umakanthan, such arrangement of contract can be drawn, initially for 24 months (2 years) initially, and to further extend, subject to consent of both parties.
From India, Aizawl

I don't think that a contract of retainership should have a clause like leaves, insurance etc should not be there. Of course, there can be reimbursement of certain expenses, like, travel in connection with office, fee paid to departments on behalf of the establishment etc.
In my opinion all employees cannot be retained as a retainer. Only those who can advise you on technical, managerial or other matters can be put as retainers. There is no meaning in engaging a worker or a junior supervisor by redesignating him as retainer. A retainer should not be following your office timing, leave rules, dress code etc.
There can be a retainership for more than 2 years, I think. What is important is the role.

From India, Kannur

Continuing the services of a person after the attainment of the age of retirement shall be governed by a policy in which all these conditions should have been laid down clearly. In the absence of such a policy, first the same has to be clearly asertained and then only a decision should be taken. It should be common for all.
From India, Chennai

If You Are Knowledgeable About Any Fact, Resource or Experience Related to This Topic and Want to Be Part of Such Discussions in Future - Please Register and Log In to Cite Community.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2023 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server