Retiring Employee Wants to Stay: How Can We Retain Him and What Benefits to Offer?

1. One employee is retiring from the services, and management wants to continue his service after retirement.
2. How can we keep him as an employee?
3. What benefits should we provide to him?
4. Is there any contract letter?
Please suggest.

You may settle all his retirement claims, including Provident Fund and Gratuity. After this, you may engage him on a 'Fixed Term Contract Basis' on a consolidated monthly payment.

You can also title him as a Retainer or Consultant and do not forget to mention that this engagement is for a fixed period. Please clearly mention the duration of the engagement. Also, mention that the engagement would automatically lapse at the stipulated time frame unless it is renewed by an official communication. Other terms and conditions such as emoluments, working hours, etc., can be mutually discussed and agreed upon.

Dear Sridhar,

If the management decides to extend the services, on retirement, of a current 'associate' (try avoiding terms like employee/staff), so be it. After the complete settlement of all his dues and payments of retirement benefits, a new contract will be signed between the two parties, laying down ALL the renewal terms and conditions - including compensation - this will be entirely professional and ethical. The management needs to be appreciated for such an offer.

Arif ur Rehmans