How Do I Tactfully Draft a Retirement Letter When "Retirement" Isn't Allowed?

I need to issue a retirement letter to my employee. I have drafted the letter below, but company management is suggesting using another word in place of "retirement" and changing the language. Please help me draft it.

Dear Employee,

Subject: Transition from Active Service

We have to announce that, according to the company’s policy, we must relieve you from all your responsibilities. We will initiate the period of your transition from active service, which will take effect on [date].

We would like to thank you for all the efforts you have put into the company over the past [number] years. You have been an incredible employee and have consistently fulfilled your responsibilities. We value all the hard work you have done.

We cannot be more obliged to you. We will settle your accounts and wish you long health and happiness in your well-earned transition.

With Best Wishes,

Dear Divya,

The draft could be as below:

Date: -

To,

Mr ______________ Employee No. _______

Change of Inning of a Career

Dear Mr. ___________,

1. You have been working at _____________ (name of your company) since ________ (year). Looking back, we find that your tenure at _____________ (name of your company in short) has been fruitful. While growing yourself, you have significantly grown the company.

2. We achieve many milestones in our careers. However, there comes a point where it is pertinent to take a break and change tracks. In the course of building one's career, one has to shoulder the responsibilities of the position. However, a time comes when it is pertinent to take the burden off one's shoulders and march without the weight of responsibility. Furthermore, changing tracks does help pave the way for younger individuals.

3. Given this, we recommend that you start the new inning of your career. The HR professionals will facilitate this transition.

4. Once again, we acknowledge your contributions and cooperation. Possibly, this will be the last time your cooperation will be solicited.

Thank you.

Yours faithfully,

___________ (name of the signatory) ___________ (designation of the signatory)

Hope the above draft suffices your purpose. I do not know the education level of the recipient of this letter. I hope he understands the contents.

Call the person to the HR office. Discuss with him the need to pave the way for juniors. One to two days later, issue him the above letter. While issuing the letter, inform him to submit a letter of resignation with his last working day as ________. Thereafter, get the letter approved by the competent authority and initiate the process of separation.

Thanks,

Dinesh Divekar

Dear Madam,

It is strange that your company management dislikes the word 'Retirement' when it is the most common event in the life of a serving employee in the corporate, government, and service sectors.

The reference to retirement in service is reaching the age of superannuation—be it 58 or 60—as laid down by the company and communicated to the employee through the appointment letter, service rules, or Standing Orders.

The letter communicating the employee about their retirement is a simple formal letter without using flowery English. It mainly conveys that:

1. The employee, on attaining the age of superannuation, will retire from the services effective from -- (Date).

2. Appreciation for their contribution during their years of service.

3. Wishing them good health and a happy retired life.

4. Directing them to hand over the charge to (give the name).

You may redraft the letter using the input above in case you find it worthwhile.

Regards,

Vinayak Nagarkar HR and Employee Relations Consultant

Thank you for your reply. We have created a retirement policy just this month. Management does not want to use the word 'retire' when communicating with employees. This does not mean they dislike the term 'retire.' Their main concern is the well-being of the employees. They want to ensure that employees do not feel incapable of working.

You have shared such a beautiful letter in very simple language.

Dear Divya,

Retirement of an employee upon attaining the age of superannuation is a normal occurrence in service. Such an event does not indicate the employee's incompetence but simply signifies the culmination of a long career span.

In my view, any official communication between the employer and employee, regardless of the service nature or establishment type, should be formal and straightforward. Employee retirement signifies a peaceful conclusion of the employment relationship, subject to predetermined conditions. Therefore, I fail to comprehend why your top brass disapproves of the term 'retirement' and insists on an alternative phrase.

Naturally, retirement from service can be voluntary on the employee's part before reaching the predetermined superannuation age due to personal reasons, or it can be mandatory at the employer's discretion because of performance issues. Nonetheless, it is a routine aspect of service without any attached stigma.

Hence, you can simply state the employee's achievement of the predetermined superannuation age and the conclusion of their services with the organization effective from a specific date, along with the organization's appreciation for the long and commendable service provided thus far and best wishes for their future well-being. Conclude by adding a postscript mentioning the date of settlement for their terminal benefits.

The apprehension of your management that the retiring employee should not feel that he is not able to work now has no basis. In fact, every employed person accepts this fact of life that one day he will have to retire from service, and as it nears, he gets mentally prepared.

If you are so wary of using the word 'Retirement,' you may start using 'On your reaching the age of superannuation on (date), you will cease to be in our employment,' in addition to other points suggested by learned colleagues.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

Retirement is a special moment in everyone's life, whether on a cricket field or a shop floor. It carries a myriad of emotions and is a massive achievement in one's working life.

Hence, it is important to handle retirement events with utmost care and sensitivity. I am glad that your organization is considering renaming or avoiding the usage of the word "retirement." In fact, the 60s are the new 30s. The person who retires carries a wealth of experience and expertise, which can help them start a new chapter. Therefore, retirement should ignite new perspectives and encourage new forms of contribution.

I agree with Dinesh Sir's views and draft.

Regards,
Amol Nakve

Dear Madam,

Please note that communicating about the superannuation of the employee is an official communiqué and it needs to be precise and clear. As far as the employee's contribution, appreciation, and achievements, etc., are concerned, the same could be conveyed separately through a service certificate. One of the simple formats that is being followed in most of the Public Sector Companies is as follows:

"Consequent upon attaining the age of superannuation, Shri ______________, Designation _________________, will retire (cease to be) from the services of the company w.e.f. ________, and accordingly, he will be relieved from the services of the company on ________ (AN).

The final dues of Shri __________ will be cleared by the Finance Division on receipt of the No Dues Certificate from all concerned."

JSM

Retirement Letter Suggestions

After retirement, I want to give a letter to the employee. Please suggest.