Dear Seniors, The retirement age in our company is 60 years. But we want to continue the services of one senior-level person as an employee. At the same time, looking at his current health conditions, we would like to reduce the number of working days for him from 5 days a week to 4 days a week. The rest of the working rules will remain the same.

1) Can we do this by issuing him a separate letter of continuation of service, also mentioning the changed working days?

I know it is suggested that it is better that such types of extensions be as "Retainers/consultant" but for some internal reasons, we do not want to take that route.
Kindly suggest.

From India, Mumbai
KK!HR
1211

Yes, you can issue an order deferring his retirement from service for or a period of say, one year or 6 months or till further orders, as it may e decided. It can be mentioned that during the extended period of service the employee will attend to the work allotted to him from office for 4 days every week. All other terms and conditions of his service will continue as hitherto before.
From India, Mumbai
kph
2

Dear Madam,

My sugestion is that, Close his service whenever he will complte sixty years. Pay his full and final settlement i.e bonus, gratuity, Leave encashment etc.....

Your internal resons not allowed as a consultant/Retainer. As a HR you have to create the posibility and create the policy for these people and show it to the management and take approval from them. Other wise senior employee retirement time you have to face same thing.


Murthy

From India, Hyderabad
Dear CiteHR member Ms Gayatri P,

The two views advised by KKHR and Shri Murthy are not incorrect, but for appropriate opinion full information about your company has not been given i.e.

1. Whether your company is a Limited/Pvt. Limited company?
2. Whether there is a Board of Directors in the company?
3. Who is the competent authority to take a final decision?
4. Whether the age of retirement and other terms and conditions of service are approved by the Board of Directors or by some other authority?
5. What will be pay, perks and allowances during extended period of service?
6. Whether extension will be granted on production of medical fitness certificate?
7. What are the benefits and family entitlements in case an employee dies in harness?

Appropriate opinion can be offered on receipt of above informations.

Regards
Chandra Mani Lal Srivastava
Master Consultant 9315516083

New Delhi

From India, New Delhi
Dear Mr Srivastava,

Thank you for inciting logical thought process. Please find my responses below:

1. Whether your company is a Limited/Pvt. Limited company? Ltd
2. Whether there is a Board of Directors in the company? Yes
3. Who is the competent authority to take a final decision? Director
4. Whether the age of retirement and other terms and conditions of service are approved by the Board of Directors or by some other authority? No.. Retirement As per the service rules and from about 5 yrs added in appointment letter also
5. What will be pay, perks and allowances during extended period of service? Similar but we are reducing the working week from 5 days to 4 days
6. Whether extension will be granted on production of medical fitness certificate? No..The person is at CXO level and company is looking for an extension.
7. What are the benefits and family entitlements in case an employee dies in harness? Currently we have Personal Accident Policy, Covid Term Insurance. But the person may be well- insured privately/individually.

Warm Regards,
Gayatri

From India, Mumbai
Dear CiteHR member Ms Gayatri P.,

It is a fine gesture from your side to post a prompt response. My opinion is as follows:

1. There is no legal bar in granting an extension to any of the employee of the Company beyond the prescribed age of 60 years. The only condition should be that the concerned employee should be physically active and mentally alert. Since the Company seems satisfied on these aspect, the extension may be granted at the discretion of the Competent Authority.

2. The period of extension depends upon the essentiality of circumstances and requirement of appropriate talent for the same. There is no legal bar in granting extension for one, two or three years at at time provided the extension should be qualified with a pre-closure clause at any time by the Company without any notice or any compensation in lieu of notice. However the employee on extended term shall be bound to give a notice of requisite period as may be decided by the Competent Authority.

3. Since your company is a limited company, therefore it would be appropriate to get the service rules approved by the Board of Directors. There have been instances when decision of one Director is questioned by the Board.

4. A clause of extension of service for deserving cases beyond 60 years, not as a matter of right for the employee, may be considered to be inserted in service rules with the approval of the Board of Directors.

Hope this will be helpful for taking a decision by your company.

With regards and good wishes,
Chandra Mani Lal Srivastava
Master Consultant 9315516083

New Delhi/11:11 am

From India, New Delhi
Thank you, Mr Srivastava for your guidance on this. Warm Regards, Gayatri
From India, Mumbai

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