Reply to your query is available in the previous posts. There is no restrictions to appoint a retired person either on the regular basis or on Fixed Term Contract, except when it's not permitted as per your HR policy/SO. There is no law which restricts such an appointment. In this case the appointee, when retired he would have withdrawn his EPF balances and closed his EPF a/c. So reopening the closed a/c is beyond question. At the same time if opening a fresh a/c is possible can be done, however EPS is not possible.