Above 58 Can Person Be Classified As Employee/Consultant

Hi All,
Have a query; unable to find solution in the posts already available.
As per our Company Standing Orders retirement age is 58, so would like to know How to a) Retain existing people b ) Hire new people as applicable
Under what category can we hire them
1. Employee ( Will all benefits be applicable ? - I Understand only PF will not apply)
or
2. Cannot come under employee category but should hire as Consultant or some other head; If so what is the implication.
Kindly let me know as per statuary/legal terms how to proceed .
Thanks
Nitya

HI NITYA,
I am Santhosh HR cONSULTANT from Chennai.
May i know where you are from ?
Have a query; unable to find solution in the posts already available.
As per our Company Standing Orders retirement age is 58, so would like to know How to a) Retain existing people b ) Hire new people as applicable
Under what category can we hire them
1. Employee ( Will all benefits be applicable ? - I Understand only PF will not apply)
or
2. Cannot come under employee category but should hire as Consultant or some other head; If so what is the implication.
Kindly let me know as per statuary/legal terms how to proceed .
Thanks
Nitya[/QUOTE]

Dear Nitya,
You can hire them on Contract basis and contract letter renewal for every year.
No PF,ESI will be applicable only P Tax deduction as per state wise.

Dear Nitya
If you wish to hire a person above 58 years of age or retain those completed 58 years of age, you can designate them as consultants and keep them. You may pay them 'fees' and deduct 10% TDS in their fees. You may issue them ceritificate under Form 16-A for the TDS deductions and they can file their Income tax returns.
However, if you wish to continue the services of a superannuating employee (having PF), give a break of 2 months before taking him as a consultant. The employee's PF should be settled before he can be re-appointed in the company. In such case, even if he is re-appointed as an 'employee' , PF need not be deducted as he will be considered as an 'exempted' employee'.
But please be aware that if his salary is less than 15,000, ESI will still have to be deducted since for the purpose of ESI, he will not be considered as an 'exempted employee' as ESI does not have any age limit.