A worker is retired but the factory needs that person, whether the worker can be re-hired, what to do for his insurance.
From India
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From India
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Insurance Options for Retired Factory Worker
A skilled factory worker retired at the age of 58. However, he is very important to the organization/factory. Therefore, the management has decided to keep him on cash payment and arrange for his insurance. We cannot deduct his PF and ESIC from the cash payment. Could you advise on the insurance coverage options available for him?
The factory is also covered by ESIC.
Regards, Sanjay
From India
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A skilled factory worker retired at the age of 58. However, he is very important to the organization/factory. Therefore, the management has decided to keep him on cash payment and arrange for his insurance. We cannot deduct his PF and ESIC from the cash payment. Could you advise on the insurance coverage options available for him?
The factory is also covered by ESIC.
Regards, Sanjay
From India
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As far as I know, there is no age limit for coverage under ESI. When the salary of an existing member/employee exceeds the threshold during the contribution period, contributions are to be made based on the actual salary until the end of the contribution period. Only after that, the individual would cease to be a member due to the higher salary.
Of course, you can reemploy a retired employee, but why would you prefer to pay him in cash? How will you account for it? In such a situation, you can consider taking an insurance policy under the Employees Compensation Act, 1923, provided that his salary is more than Rs. 21,000 per month.
From India, Salem
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6108Of course, you can reemploy a retired employee, but why would you prefer to pay him in cash? How will you account for it? In such a situation, you can consider taking an insurance policy under the Employees Compensation Act, 1923, provided that his salary is more than Rs. 21,000 per month.
From India, Salem
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Employees' State Insurance General Regulations 1950.pdf
Employees' State Insurance General Regulations 1950.doc