How Can We Extend Employment for Someone Over 58 While Keeping Benefits Intact?

Please let me know how to extend the services of an employee after their retirement age of 58. Can this be done with the same terms and conditions as a regular employee, such as provisions for gratuity, PF, house rent, medical, etc.

Regards,
Gayatri

Steps to Extend Employee Services Post-Retirement

a) Obtain a request letter from the concerned employee requesting an extension of service.
b) Ensure the request letter is approved and accepted by the authorized person on behalf of the organization.
c) Issue a letter to the concerned employee confirming the acceptance and approval of their request, specifying the effective date of the extension.

Service terms and conditions will remain the same as it is an extension and not a renewal or re-joining.

Regards,
Kamal

Gayatri, Kamal said it rightly. Only the EPS portion of his PF will not be there after 58 years.

Pon

Mr. Pon is correct. After the age of 58, employees will start receiving their pension (if eligible), and the employer's contribution (12%) will go towards the PF fund and not the pension fund.
Thank you.

I would like to know why there is a limit on the retirement age for individuals who have put their heart and soul into the growth of the company. There should be a law in place where a person cannot be retired unless and until they choose to do so.

Regards,
Aakash Gupta
New Delhi

It applies in private companies if the individual's performance was good and their health was okay, but this is not the case in PSUs/Government sectors where there is a retirement age cap.

Regards,
Pon

The absolute right as per PF is concerned, but also take care of Gratuity, in which the age of retirement is mentioned.

Regards,
P.S. Gill

The age clause is not mentioned in the Gratuity Act 1972. The act is silent on this matter.

Retirement Age and Employment Contracts

The age at which an employee should retire (superannuation) depends on their employment contract (appointment/offer letter) and varies from organization to organization.

Regards,
Kamal

An employee in my organization has retired. His final settlement dues, including gratuity, have been settled. He was given a fresh appointment once again.

My question is whether he would be entitled to gratuity once again in this fresh appointment on completion of five years?

Regards,
S

Eligibility for Gratuity for Contract Employees

Question: Are employees who receive a professional fee per month and are on a roll contract eligible for gratuity?

No, since they are receiving a professional fee and not a salary, they may not be eligible for gratuity.

Regards,
Alphonse

One employee continues in service even after reaching retirement age. Let's say he retired on 31-3-2010. How do we calculate the gratuity payable? Do we pay:

- As per the pay and number of years of service as of 31-3-10, plus interest till the current date? (Please advise on the interest rate applicable, and any judgments, rules, or sections in favor of this choice.)

Or

- Based on the pay and number of years as of today? (This amount will be higher than the previous option.)

Regards and Happy Diwali to all.