Dear Seema,
Employment Contracts and Superannuation
Basically, employment is also a contract falling well within the Indian Contract Act of 1872. Therefore, the contract of employment between the employer and employee comes to an end when the employee attains the predetermined age of superannuation, as mentioned in the contract or in the service regulations applicable to the employee.
Extension of Service Beyond Superannuation
In such a situation, any extension of service given to a particular employee on the exigencies of work by the employer after reaching the age of superannuation is purely at the discretion of the employer. Therefore, it cannot be cited as a precedent by employees retiring subsequently. To avoid unnecessary claims, it is advisable to first permit the specific employee to retire on the specified date and settle all their terminal benefits. Subsequently, after a gap of around one month, reappoint them as a fresh employee upon their written request as a fixed-term contract employee. Alternatively, you can also engage their services as a consultant on a retainer basis, but their current employment cadre would not justify it.