Sudden Retirement Decisions: What Steps Does HR Take and What Formalities Are Involved?

If management suddenly decides on any worker's retirement, what is the process that will be done by HR? Furthermore, as per the act, what types of formalities can we expect?

Please let me know if you need any further assistance or clarification.

Dear Management,

Management cannot suddenly retire a workman. There needs to be a service condition to that effect lest it be termed as 'Retrenchment' under the Industrial Disputes Act 1947.

Retirement Clause and Procedure

Assuming the existence of a clause providing for retirement, be it Standing Orders, appointment order, or service condition communicated to the workmen, the order could read as follows:

On attaining the age of superannuation as per clause No. of -----------------, Shri ---------, Employee No. ----------, ----------(Designation), will be retiring from the service of this organization with effect from ..\/..\/.. (A\/N).

He will be paid his dues on submission of a 'No Demand Certificate' from the concerned departments as per the format attached.

Hi,

As rightly said by Mr. KK, you cannot retire any employee solely based on management decision. You need to adhere to the retirement age specified in the appointment agreement that was mutually signed by the employer and employee, as well as the retirement age outlined in the standing order.

Dear Friend,

1. The information provided by you is incomplete.
2. The employee in question is either a workman under the ID Act or a supervisor/manager.
3. What is the retirement age as per the law? Has he attained the age of superannuation?
4. Without the above information, it is not possible to provide correct advice.

Warm Regards,
Bharat Gera
HR Consultant
9322404765

And there is a difference between voluntary retirement scheme and retirement on attainment of superannuation. If a single person/workman is asked to go or is disengaged from his services suddenly, it would be considered retrenchment, as suggested by our learned colleagues, unless it is for proven misconduct and proper procedures are followed for such termination. Local state rules and standing orders prescribe employee retirement age, and companies are bound to follow it.