One employee is retiring from the services - management wants to continue his service after retirement

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

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

You can also title him as Retainer or Consultant and do not forget to mention that this engagement is for a fixed period. Please mention clearly the duration of the egagement. Please also mention that the engagement would automatically lapse at the stipulated time frame unless otherwise it is renewed by an official communication. Other terms and conditions such as emoluments, working hours etc, can be mutuallyl 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 benifits, 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 be appreciated for such an offer.
Arif ur Rehmans