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pundalikhr
6

Dear Seniors, After joining organisation I had checked appointment letters of the employees, wherein clause of retirement it was mentioned as age 55 for retirement.

Actually 58 years age is prevalent in Goa as retirement age for private sector employees. When I had mentioned this clause to higher management, They had instructed me keep retirement age same as 55. Now question is whether keeping age 55 as retirement age is legal?

From India, Pune
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Seasoned Ir Professional
SPKR
Consultant Trainer In Insurance, Adviser
Srinivas24
Hr & Ir Professional
Bhowalkaushik
General Manager Hotels
+1 Other

Madhu.T.K
4193

Under which Act in Goa it is mentioned that the retirement age of private sector establishments is 58? My understanding is that there is no such Act other than Standing Order which can regulate retirement of employees.
From India, Kannur
pundalikhr
6

Yes sir, We have not found same mentioned in any act but most organisation keep 58 as retirement age. Now question is whether keeping age 55 as retirement age is legal.
From India, Pune
Madhu.T.K
4193

There is no illegality in keeping the age at 55. You can frame a standing order and in that standing orders, if you keep the retirement age at 55, then that becomes a binding contract. Even a clause about the retirement age in the appointment order is sufficient to establish it. But as you said for all companies, the retirement age is either 58 or 60. Under EPF, the age for getting pension is 58. Therefore, your employees will have to wait for three years without any job to get pension from the EPFO. That is very bad and miserable also. Moreover, with the life expectancy increasing, there are states increasing the retirement age for their government services.
From India, Kannur
Srinivas24
17

Well..!! It is an exciting topic for discussion.

Dear Mr. Pundalik,

Allow me to present you with legal grounds to support your efforts in persuading your management.

1. Regarding the provision of law concerning retirement age:

The retirement age for employees engaged in industrial employments in Goa is regulated by the Industrial Employment [Standing Order] Act, along with its associated rules. According to these rules, the current retirement age in Goa is 58 years. Therefore, it is important to acknowledge that the law explicitly addresses the issue of retirement age.


2. Concerning the possibility of establishing certified standing orders for 55 years:

In several instances, the Honorable Supreme Court has ruled that when the certifying authority disregards provisions outlined in the model standing orders, which affect either party, such decision becomes null and void. In other words, any attempt to reduce the retirement age to 55 years, contrary to the model standing order's prescribed age of 58 years, lacks legal validity.


3. Regarding conflicts between agreements/appointment orders (including certified standing orders) and legal provisions (model standing order provisions):

Numerous recent judgments [ you can get plenty cases in HCs including Division Bench], have established the well-settled law that in situations of such conflicts, the provisions of the model standing order take precedence over any other agreement, appointment order, or certified standing order entered into between the employer and the workers.

Please note that laws enacted through legislative and regulatory control prioritize public interest and have the authority to supersede agreements / settlements made between two parties.

While suggesting above to Mr. Pundalik, I am led to believe that the opinion of Learned Senior Mr. Madhu T K, regarding the certification of standing orders or including a clause in the appointment order, holds no legal weight.

From India, Bangalore
SPKR
32

No such rules to fix the retirement age at 55 years. In Government service, the retirement age is 60 years maximum. For calculation of pensionary benefits, qualifying service is restricted to 33 years of service
From India, Bangalore
Madhu.T.K
4193

Dear Srinivas,
Can you please share me under which section of Standing Orders the retirement age is fixed at 58? Or is there any state rule which so specifies? Similarly, please share a judgment which rules that the private establishment should give employment till 58 years of age?

In my understanding the retirement age is regulated by means of appointment orders and certified standing orders.

From India, Kannur
pasupathi.uma25@gmail.com
6

Long long ago say about 50 years back, Mc Neil's a Company had its Standing Orders certified by the Notified Authority where the Age of Retirement was mentioned as 55 years and if my memory is okay two of the leading conglomerate in Chennai with Additional provisions that post 55 years Extension of Service for one year and renewable for another two years subject to medically found fit
From India, Chennai
bhowalkaushik
There has to be some sort of a statutory rule regarding the retirement age of employees. If left on organisations to decide, we will soon find people being retired at 40. Surely there is some regulation binding on private organisations.
From India, Kolkata
Madhu.T.K
4193

When the law making authorities are trying to make the labour laws in such a way that it will most benefit the employers by extending the fixed term employment in the light of attracting investments, the voice of employees is very limited. If you make a law which says that the entire salary will constitute 'salary' for contribution to PF or gratuity, the employers will not follow it. But at the same time, if your law says that the employer can terminate any employee whether he is confirmed or not or has rendered a service of 240 days or not, or without reference to the principle that the first employee to be retrenched should be the last one employed in the particular division, department or organisation, that law will be enforced immediately.
From India, Kannur
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