Labour law - Can an organisation under factories act have 2 retirement age policy for senior and junior executives?

Can an organisation under factories act have 2 retirement age policy for senior and junior executives please assistance appreciated.

Yes you can have different retirement/ superannuation policies for different categories of employees. This is because, the Factories Act (like any other Act) is silent about retirement age. It is usually made a service condition either by separate mention in the appointment order or Standing Orders of the company.

In the Factories Act 1948, there is no provision for retirement age. Retirement is mentioned in the Standing Orders, does tis estalishment has its own certified Standing Orders or it is following the Model SO prescribed under the rules. The Bombay IESO rules state that the age for retirement or superannuation of the workmen may be sixty years or such other age as may be agreed upon between the employer and the workmen by any agreement, settlement or award which may be binding on the employer and the workmen under any law for the time being in force. So check the factual position in this regard.

There are instances where there is different retirement age for different categories of employees in the same organisation. For instance if a few employees whose appointment order had specified a particular age to be the retirement age and later the organisation had speccified a different age which is lower than the earlier one, the few employees governed by the earlier retirement age have their right to serve till they reach the enhanced age.

Thanks Madhu & KK!HR i am working in a coop credit society (pathpedi) where are total manpower strength is 34 employees on payroll n 40 on contract basis i have never came across any standing orders. Nor the bye laws under Maharashtra coop credit society act specify multiple retirement age. As one employee have got retiremnet at age of 60 rest are paranoid to knw wether they retire at 60 or 63

Normally Cooperative Societies will be governed by service rules attached to the State rules. As such, there cannot be different retirement ages for different persons though there can be different conditions of service including retirement ages for different classes/ categories of employees, like, workers, class III employees or Officers of Junior executives, Managers and above etc. If the Cooperative Act and Rules framed therein provides for a common retirement age, that should be applicable to all employees. But the Board of Directors may have powers to extend the retirement age of ceratin persons or keep employees even after superannuation on a separate terms. This will be done after the benefits on retirement are settled. Please check.

Thanks Madhu for your prompt reply really appreciated.

Dear Farhan Shamsi,
Generally Employers specify a retirement age of between 55 to 58 yr. In some industrial establishments where the Industrial Establishments (Standing Orders) Act-1946 applies, employers can fix the age of retirement at 60 years or more therefore you can make retirement/ superannuation policies for different categories of employees.

Dear Alok,
Thank you for ur input, our society have specified in its lastest circular that MD and Operation manager will retire at the age of 63 and rest all other will retire at the age of 60 my point is is it legally right to opt 2 retirement policy as far as till date i have not come across any organisation with 2 policy for retirement.

Even the Central Government had two different retirement ages prior to the amendment of FR 56 in 1998.

Prior that, the general age of retirement had been 58 years. However, Group D employees could continue in service till the age of 60 years.

Pls, find the Judgment for retirement age from the Karnataka Dharwad High court bench.