A worker is retired but the factory needs that person, whether the worker can be re-hired, what to do for his insurance.
From India

What sort of insurance you require?
From India, Salem
Respected All,

A skilled factory worker retired at the age of 58. But he is a very important for the organization /factory. Therefore, the management has decided to keep him on cash payment and how can he be insured. Also we Cannot deduct his pf and EsIc in cash payment. However, in which insurance can it be covered?

Factory is also covered in ESIC.


From India

Dear Sanjay,

So far as I know, there is no age limit for coverage of ESI. When the salary of an existing member/employee exceeds the threshold during the contribution period, contribution is to be made on the actual salary till the end of the contribution period and only afterwards he would cease to be a member by virtue of his higher salary.
Of course you can reemploy a retired employee but why should you prefer to pay him in cash? How will you account for it?
Any way, in such a situation, you can take an insurance policy under the Employees Compensation Act,1923 provided his salary is more than Rs.21000-00 pm.

From India, Salem


You can rehire him as a consultant or your organisation pass a resulation that Mr .X retirement period is increase for y period.
Then he will be able to avail all earlier facilities .



From India, New Delhi
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