Navigating Early Retirement: What Benefits Should We Offer Our Long-Time Employee?

Dear Seniors,

We have to ask one of our old employees to take early retirement, as he is quite old and working in the technical department. I would like to know what benefits we have to give him if he agrees to take early retirement.

Many thanks in advance.

Best Regards,

Arshad Rahmani
Manager Administration

What is the designation of that person? How many years has he worked in the company? Though he works in the technical department, can you utilize his services for training the young employees?

Just because someone is old, you cannot tell that person to quit. However, you can retire that person provided his performance is not up to the mark or he is unable to learn the skill set required for the job. For example, many old employees in the public sector cannot operate computers with the required speed. They are too slow in their work. Such employees are either placed in some other department or told to quit the company.

As far as remuneration is concerned, he would be eligible for gratuity. However, it is up to your company to give the severance pay. For how many months it could be that we the outsiders cannot assess.

Thanks,

Dinesh Divekar

I agree with Mr. Dinesh's viewpoints. In case the organization is undergoing a complete automation/change orientation process and the capabilities of certain aged employees are not meeting the required parameters, it is better to plan for a VRS process, which shall be beneficial for both the employee and the employer. Failing to do so will convey a wrong message to the market, and the organization will be seen as non-ethical with inhuman practices.

Now, the company might have grown leaps and bounds, but these are the people who have put their heart and soul into the development of the company; hence, they are to be treated with utmost respect. As suggested by Mr. Dinesh, it is better to entrust them with the responsibility of a trainer/mentor, etc., or else relieve them with a good package.

Thanks,
Kameswarao

Dear Rahmaa,

You have not mentioned the retirement age applicable to the employee in question. What do you mean by "He is pretty old" despite holding the position of "Manager-Administration"? You are addressing an employee who has served your organization as pretty old, which does not go well. This reflects your mindset. Have you not heard of "Senior Citizen"?

Thank you.

Please refer to the standing orders of your company and possibly provide information on the severance pay benefit.

Thank you.

Retirement Age and Employee Benefits

1. What is the age of retirement in your company? Has the concerned employee crossed that age limit?

2. If he has not crossed the age limit, pay him full salary (you can negotiate for half salary also), gratuity for the balance period, and ask him to leave respectfully. Give him a farewell party as well.

3. If he has crossed the age limit, then provide him with all benefits, one month's salary, and ask him to leave. All these actions should be carried out respectfully.

4. Before taking any such action, please speak to him and discuss the matter.

With warm regards,
Bharat Gera

Most early retirement offers include a severance package that is based on the annual salary and years of service at the company. Some early retirement offers include employer-sponsored life insurance.

Dear Arshad Rahmani,

For early retirement, the above inputs are great. Apart from that, I suggest you provide employment to his child.

Thank you.