Retaining Employees Past Retirement: How Can We Keep Valued Team Members Engaged?

Retaining an Employee Beyond Retirement Age

I need your help. As per our company policy, the retirement age of an employee is 55 years. We have an employee who has completed his 55 years of age but still wants to continue, and our company also wants to retain him. Kindly suggest how we can keep him in our organization, either as a contractor or through other means.

Regards,
Sonam

The management has the right to continue the employment of any employee beyond the retirement age. You need to issue an office order extending his services till 58 or so, subject to his continuing good health, etc. No need to enter into a contract or hire a consultant. However, wait for more suggestions from our learned friends.

Regards,
Kamesh

Going with the above idea can be good, and a company can do this. It may influence other staff in your company. If the same case arises again for another employee, then you need to go the same way by extending the period of services. It will be just like playing with the company rules. Through this, the message will go to the staff that they assume the company can change or modify any other rules too.

Also, you need to understand that one day you have to retire the employee, even if you do not want to, and there may be many reasons for that. Instead of continuing the services of that employee, you can give an opportunity to a new employee and train them well under his guidance.

Signing a Contract for a Defined Period

It would be better to sign a contract with that employee for a defined period. Then, ask him to train a new or other junior-level employee. When the new person is trained, you can promote the new person to take his place. But the contract letter and all the things should be done with mutual understanding.

Simply sign a contract with him. As he was a former employee, no claims are likely, so there should be no issue.

In my view, if a retired employee is rehired on a contract basis, the terms of employment differ. Suitable terms and conditions of the contract agreement are required to be established to suit such future employment of individuals.

Regards,
Eswararao Ivaturi.