Hiring Retired Employees: What Are the Steps and Challenges Involved?

Hi,

Warm wishes to all! Please let me know what the procedure involved in hiring retired employees is, such as:
1. Can we put them on the payroll?
2. Do we need to draft a special Appointment Letter for them?
3. Are they eligible for all the benefits like regular employees?
4. What are the problems in hiring retired people?

Kindly do the needful!!

Satish K. Renikunta

Hi,

There is no problem in recruiting retired employees. In my experience, it is beneficial to hire them as direct consultants for a minimum of 1 year. Based on their ability and performance, you can extend the contract. They do not need to be covered under statutory requirements as it is a specific contract.

Regards,
Raghu

When you plan to hire retired people, remember a few points:

1. They are retired and tend to be slower than usual at work.
2. They might have made secondary commitments in life other than work.
3. They are not willing to work anymore except for the want of something.

And most importantly, they are never going to work too long with you. So, after considering all this, if you still feel that they can deliver more than any other employee in the short period that they can work for you, take them. There is no law that would stop you from doing it. Ensuring their well-being and paying them a gratuity should be enough.

Hi,

My experience suggests the following recommendations:

1. Retired individuals cannot be hired as regular employees.
2. They can be engaged on a contract basis, which may be extended for a minimum of 6 months.
3. Payment should be made through vouchers and not through any other process.
4. Only a consolidated amount should be paid for the "services offered."
5. Hourly hiring is also a viable option.
6. No records should be maintained that identify any transactions with them as employees.

Prabhakar Ch
Hyderabad
Email: prabhakarcherry@gmail.com

Please reply if there are any legal issues involved in hiring somebody above 60 years on payroll.

Thank you.