Retirement Age Dilemma: Can We Let Go of Employees at 58 if They Get Superannuation?

Can we terminate workers from service after they reach the age of 58, especially if they are already receiving superannuation benefits?

Rather than terminating services based on age, it is better to consider them as the best resources for progressive improvement and guides to the organization. In fact, they are financially secure and eager to provide their best services for the organization. Their experience and guidance can help the organization reach new heights, provided we respect them and follow the path they suggest. While we may have our own reservations when making decisions, the edges of those decisions need to be refined for the best outcome. Let them enjoy their service benefits upon completing 58 years; there are no limitations to their experience and perseverance. I always recommend having a consultant on board and compensating them; it will certainly aid in progress. You can discuss any issues for better solutions.

I am at a loss to understand how the employees availing of superannuation benefits are still in your employment. In general, the term "superannuation" indicates two things: as a mass noun, it means a fund created by the periodical contributions of both the employer and employee from which the employee would get a pension after ceasing to work, and as a noun indicating the process of retirement of an employee from service on the attainment of a certain age as agreed upon for the purpose in the contract of employment. If no age for superannuation is mentioned in the contract, it becomes a perpetual contract or contract at will terminable at the option of either party. But in India, such a contract at will in the realm of employment is declared to be "VOID" by the Courts. Therefore, in the absence of a particular age of superannuation in the contract of employment, the employer cannot terminate the services of his employees simply on the ground of attainment of 58 years of age.

Contrarily, if you continue any employee beyond the age of superannuation without conferring the benefits of superannuation, it implies the extension of services for a definite period if any, so fixed. If they are permitted to retire at the age of superannuation and payment of such benefits are also made but continued in service, it becomes a second innings of service. In such a situation, simple termination on the ground of mere age is not possible except on the ground of misconduct or underperformance, which requires definite procedural adherence.

Dear Shri Umakanthan M and Shri EPLBRD, In the virtual world of discussion, rather than perceiving in-depth, let us presume this is a case pertaining to the completion of 58 years superannuated from service (in some cases 60) and getting benefits applicable, including pension every month. The question that I considered is: can we engage such experienced individuals for consultation purposes, guidance, administrative tasks, etc.? The employee may not be directly on the payroll, even if the retired employee is on the payroll for certain purposes. For specific jobs, let them be consulted for due recognition. As is the case, this will certainly benefit the organization in job discussions, job enlargement, job analysis, etc., for betterment and aiming high.

Regarding the question of termination, I have suggested that such a person can be terminated without hesitation, as they may be on the role as a consultant, providing security in the organization or other services. However, with special skills, we can utilize them for progressive service. These aspects need to be considered by EPLBRD. The word termination is the hindrance...

Thank you.

Of course, your views pertaining to the utilization of the services of the erstwhile or superannuated employees in the same organization are well-received, Mr. Gopinath Varahamurthi. Though the consistent practice of such an arrangement in the long run has its own shades of grey.

Engagement of Superannuated Employees

I think that the problematic situation underlying the query in the post is not that of engaging the superannuated employees in the capacity of consultants on a retainer basis or fixed-term contract basis but retaining them as regular workmen. The misconception of the poster that since the workmen are in receipt of superannuation benefits and over 58 years of age already, they could be simply terminated at the will of the employer only has prompted this question, if I were correct.

Dear Shri Umakanthan, absolutely, they have their own decisions, yet this question has been posted. We have to consider it in good will; someone is putting service beyond the age and getting the benefits.

Issues related to termination after age 58

1) Such an employee is going to be terminated, but the purpose is not known.
2) Someone is still in the post, continuing beyond 58 years and sticking to the post. How should they be removed?
3) Some expertise advises the organization might have received to get rid of such employees continuing beyond 58 years.

These are all probable issues connected to the post. They have to terminate (the word used is termination knowingly or unknowingly) the employee, and the organization has to do that without hesitation. However, some skilled workers/employees are gifts to the organization whom, before termination, they have to consider not in the regular payroll beyond the age of 58. So, let them take the decision... Let it be done by them...