Dear Seniors,
I need your help in dealing with an Employee Retirement. In our company, as per policy, we have 60 years as the Retirement Age. Recently, we have one employee who has completed 60 years. Do we have to complete his retirement formalities? Or can we continue his employment as the employee is willing to continue his services? Are there any legal/statutory implications if we continue him in the services?
Need your valuable inputs.
Thanks in advance.
From India, Hyderabad
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I need your help in dealing with an Employee Retirement. In our company, as per policy, we have 60 years as the Retirement Age. Recently, we have one employee who has completed 60 years. Do we have to complete his retirement formalities? Or can we continue his employment as the employee is willing to continue his services? Are there any legal/statutory implications if we continue him in the services?
Need your valuable inputs.
Thanks in advance.
From India, Hyderabad
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Hi,
There are no legal or statutory implications. It is up to the discretion of the employer to allow the employee to continue after 60 years. However, after 58 years, pension contributions to the pension fund are not allowed in the PF, and the entire employer contribution goes to the PF only.
From India, Madras
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1015There are no legal or statutory implications. It is up to the discretion of the employer to allow the employee to continue after 60 years. However, after 58 years, pension contributions to the pension fund are not allowed in the PF, and the entire employer contribution goes to the PF only.
From India, Madras
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Dear Sir,
Thank you for your response. With regards to changes in the PF, do we, as the employer, need to make any adjustments or inform anyone about the contribution part? Or does it happen automatically since the employee's date of birth is already on record? Please confirm.
Thank you.
From India, Hyderabad
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Thank you for your response. With regards to changes in the PF, do we, as the employer, need to make any adjustments or inform anyone about the contribution part? Or does it happen automatically since the employee's date of birth is already on record? Please confirm.
Thank you.
From India, Hyderabad
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Dear colleague,
To effect retirement upon reaching the age of superannuation and continuing his association after retirement, the following options can be exercised:
1. Retire the employee by issuing a suitably worded letter intimating two months prior to his last date and settle all his legal dues on the last day.
2. If you want his services, engage him as a Consultant on mutually agreed terms.
3. There is no bar in extending his services for a certain period on existing terms.
In the case of rehire upon retirement, options 1 and 2 are widely followed in the private sector.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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To effect retirement upon reaching the age of superannuation and continuing his association after retirement, the following options can be exercised:
1. Retire the employee by issuing a suitably worded letter intimating two months prior to his last date and settle all his legal dues on the last day.
2. If you want his services, engage him as a Consultant on mutually agreed terms.
3. There is no bar in extending his services for a certain period on existing terms.
In the case of rehire upon retirement, options 1 and 2 are widely followed in the private sector.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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