Hi Team, If an employee got retirement age and still that employee want to continue with the system, what is the process for that?
From India, Bengaluru
Labour Law & Hr Consultant
Ceo-usd Hr Solutions


Dear Dixit,

In my opinion, generally, any employee who has had a contented career and a planned life would always eagerly await the age of superannuation to turn a new leaf in his life. But, there can be exceptions. One might have started his career late and could not have still settled in life like unaccomplished commitments towards late born children such as education, employment or marriage etc.; some others might be obsessed with the routines of their own employment so that be ignorant of the alternatives for being within doors. Only such people will desire to be with the organization even after their retirement on superannuation and therefore it cannot be simply found fault with since the adage goes " Udhyogam Purusha Lakshanam".

Reemployment of an employee in the same organization after his retirement on attaining the age of superannuation can be done in two ways - one is giving extension of service at the discretion of the employer before actually allowing him to retire and the other is engaging his services as a consultant on a contract for service after his actual retirement.

Extension of service of an employee of workman cadre can be an example to incite other employees to put up such a demand and can be a case of favouritism.

Engagement as consultant on contract basis can be adopted in case of senior managerial cadre of professional and technical positions only. Such a step may be indicative of poor succession planning and may even lead to heart burn of the immediate juniors aspiring for promotion and result in higher attrition rate.

So the ultimate decision in this regard rests with the wisdom of the top management depending on their compassion as well as compulsion of their business needs.

From India, Salem
Devender Singh Yadav
If mgt feel employees service are required then they can hire him on retainer-ship for some time ! Umakanthan. M Sir, rightly said It’s totally wisdom of the mgt .
From India, Gurgaon
Kuldeep Kumar Chauhan

Dear member, the engagement after expiry of the original contract term of employment /retirement/ superannuation may be seen as exception. Some organizations have an expressed written down policy to engage the ex-employee a specialist / consultants under contractual arrangements. There is no prohibition under any law to such arrangements and therefore superannuated employee can be engaged by the organization under specific arrangements terms. In case of such ex-employees( superannuated) who were otherwise covered under EPF & ESI would not be required to be covered in second innings . But general insurance is advisable.
From India, Lucknow

Retired employee may be engaged or extended the service period but with the following measures:-

1. As Mr. Umakanthan has been recommended, I fully in agreement with him.

2. If his post retirement remuneration is within statutory limit of PF & ESI that will continue except for PF if the employee was member of EPFO and settled his account ( both PF & Pension) after retirement - the employee will be considered as excluded employee.

S K Bandyopadhyay ( WB,Howrah)
CEO-USD HR Solutions

From India, New Delhi

Dear Dixit-Mogalipuri ,
There are two ways of handling this matter:
1. Staff need to be properly oriented well before the date of actual retirement which can be done by giving them notice of retirement - before 1 year, 6 months and 1month. They need to be counselled on their period of retirement and financial management of the terminal benefits .
2. such matters should be part of the "Policy on Employment of staff post-retirement" which is very essential for all organisations. This policy alone shall prescribe for which positions such employment is permitted, what shall be remuneration on such agreement and any other consideration in connection with such employment.

Kindly be guided accordingly.

From India, Chennai
Rahul Kapoor
In such scenario, an employee can be hired as a consultant with a monthly fixed fee. In this case, that employee will raise a bill on monthly basis for his services and the same will be paid by the company.
From India, New Delhi

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