An employee working in our company is 60 years old now, but his PF contribution is continuing. Can we retire the employee? Is there any issue or legal problem regarding that? Please help.
You might have issued an appointment letter to this employee. Please refer to the terms of the appointment letter, which typically state that you will retire from the services of the company upon attaining the age of 58 years. By referencing that specific term or clause in the appointment letter, you may proceed with retiring him/her.
Please check your coverage under the Industrial Employment (Standing Orders) Act, 1947, or else the Shop & Establishment Act applicable to you. If there are any service conditions or precedents regarding retirement, please follow those.
The information provided seems incomplete or unclear. One can continue to be a member of PF even after 60 years if they are still employed. Contributions to the pension stop when you reach the age of 58. According to company policy, you can either retire the individual or extend their service with no legal issues.
Regards,
Puran Dangwal
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