Facing Retirement Uncertainty: Which Age Limit Applies After Our Company Merger?

Dear fraternity, I have been working in the automobile industry for the past 10 years, and I am now around 56 years old. Our company will be affiliated with our sister concern from April 2022. The retirement age of our existing company is 60 years, but the working age of the merging company is 58 years. I am unsure which of these ages applies to me. Thank you.

Affiliation with a Sister Concern: Impact on Rules

By affiliating your establishment with a sister concern, its rules will not automatically apply to you. First of all, it has to be notified. The principle is that in applying new rules, your rights cannot be taken away. You have a vested right to continue in service until the age of 60; it cannot be taken away by a simple order. There is a prescribed process for changing the service conditions, starting with a notice of change, followed by the dispute resolution process if there is an objection. In the case of a notice regarding changing the retirement age in the future, you can seek protection of your rights.

I assume your company is merging with the sister concern, not affiliating.

In such a case, a new set of standing orders will be certified. You should ask your HR to provide you with the answer to the above question.

Actually, your company is getting merged or amalgamated with your sister concern. In that event, there would be a scheme of amalgamation that would define the conditions of your employment. If the scheme paves a path for the reduction of the retirement age, then the retirement age would be 58 years. However, if as per the standing orders of your company, your retirement age is 60 years, then it would continue until it is modified by any amendment in your certified standing orders. Certified standing orders would not be changed automatically; moreover, the standing orders of the sister concern would not be applicable to you.