Retirement date - if an employee turns 60 on 6th June what date he should be relieved from the services?

Regarding retirement day,

Respected sir, I have a query about the day of retirement. For example, if an employee turns 60 on 6th June, what date should he be relieved from services considering 60 as the retirement age? Will it be 5th June or 30th June?

Please provide more information about your company and your role within it for the benefit of our senior members.

As per calculation, it should be 5th June (after completion of business hours) if the DOB is 6th June. However, many organizations have a culture to retire at the last date of the month if the DOB is the 2nd of a month to the 1st of the following month.

S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity.

As the employee turns 60 on 6th June, the effective date of retirement would be 7th June. If you execute retirement on 5th or 6th June, that will fall short of the retirement age by 1 or 2 days. In this situation, the incumbent may take legal steps against the company. If your management wants to avoid making fractional payments to the incumbent, you may choose to effect the retirement from the first day of July, which would be considered a humanitarian gesture.

Regards,

Md. Ariful Islam
HR Professional
Pharmaceutical Industries, Bangladesh

Normally, an employee will retire on the last day of the pay month. This has been a practice for various companies over many years. Therefore, if the retirement age is reached on the 6th of June, the employee will remain in service until the 30th of June.

Dear Mr. Md. Ariful Islam,

I would like to mention that if someone's birthday is on 6th June, the person will complete one year on 5th June considering both days. On any birthday, the person is always one year and one day old, not just one year.

Therefore, the calculation you have shown is not appropriate. Please check it once again, and if possible, consult with an expert.

Arithmetically and legally, it is correct based on my earlier posts and the present one.

Thanks & Regards,

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity

The illustration given by Mr. S K Bandyopadhyay is perfectly correct arithmetically. However, the view expressed by Mr. Madhu is a standard practice followed in many companies.

I would also like to mention that few big companies go a step further. For example, one of the leading auto majors in India and now an MNC company has a system of retirement dates as the last date of every quarter, namely 31st March, 30th June, 30th Sept, and 31st Dec every year. Those staff members whose retirement age falls between 1st Jan and 31st March shall be retiring from service on 31st March and likewise in the remaining 3 quarters.

As per general HR practice, the last day of the pay month/pay cycle will be the retirement day of the individual, whether they serve for one day or the whole period.

For the teaching staff in schools and colleges, the retirement date is even extended until the academic year ends. Therefore, if the actual retirement date of a teacher in a school aided by the government (in Kerala) is in June or July, they will be relieved only on the 31st of March of the following year.

Deferring the relieving date to the end of the month/quarter or academic session is only a matter of convenience, as in large organizations, it would be a retirement day every now and then.

As for the query, it is necessary that the organization lays down a clear-cut policy in this regard. The options have already been discussed in the earlier responses.