How Can We Rehire a Helper After Retirement at 58? Seeking Practical Solutions

What are the ways to appoint a staff after his retirement, i.e., as per standing orders staff retires at 58 years. But to continue him in the services of the company. Especially for a helper grade?

Dear Kumar,

The Karnataka Government has increased the retirement age from 58 years to 60 years for establishments to which the Industrial Employment Standing Orders Act, 1946 applies. Consequently, your employee in question will retire from service only after attaining 60 years.

Thank you.

Dear Kumar,

Why do you want to retain a helper-grade employee after retirement age? If it is a senior profile, helping hands to the organization, but you need to ensure he is fit to continue regular activity. Generally, companies retain management personnel after retirement, paying them as consultants or a retainer fees, etc.

Thank you.

Retirement Age and Superannuation Guidelines

The age of retirement on superannuation prescribed in the model standing orders under the IE(SO) Act, 1946 is a guideline only. An employer can determine a higher or lower age for superannuation for their employees in the establishment based on the nature of their work. However, it is advisable to adhere to the age fixed in the standing orders to ensure effective succession, fairness in promotion matters, and uniformity in employment tenure.

Exceptional Circumstances for Extending Employment

In exceptional circumstances, such as the need to complete a special project requiring the retiring employee's specialized knowledge or the unavailability of a suitable replacement internally or externally, the retiree's services may be extended or they may be retained as a consultant on a retainer basis. This practice is typically followed for high-profile positions within the organization.

Considerations for Lower-Category Employees

For lower-category employees like helpers, such practices are generally not recommended as they could lead to favoritism or bias. Nevertheless, the employer has the ultimate authority to extend tenure as deemed appropriate without legal restrictions.

Thank you.

Dear All,

Thank you for your inputs. To provide support to this employee after retirement, the company would like to retain him for some more time as he is a healthy man.

Could you please advise on what a retainer means and how the appointment order is given? Is it similar to a consultant?

Thanks & Regards,
Mohan

Retirement age is 60.

After retirement, you can keep a person on a contractual appointment as well. Keeping a person as a consultant can also be examined, provided you find value in retaining the employee due to his knowledge, working ability, etc.

Dear Kumar,

A retainer means the remuneration paid for services rendered. It can be an arrangement, like that of a consultant, with the terms and conditions clearly laid out.

Though the standing orders or service rules stipulate an age for retirement, they also normally provide a clause empowering the employer to continue an employee in service after retirement, subject to the employee being found physically and mentally fit to do the job. You can invoke such a clause if the contract of service includes one. Even if it is not there, the employer enjoys inherent power to continue an employee after retirement as per his need in special cases. However, to avoid others quoting it as a precedent, it is better, as Mr. Nathrao suggested, to appoint him as a consultant/retainer.

Regards, B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai