Hi All,
One of our employee is working as Senior Production Officer and he has attained retirement age but our management want to retain him with the company.
My question is that how we can continue him on his current job? Is there may be any legal problem? Can we hire him as a consultant ?
Please suggest in detail.
Regards.
Rajesh
From India, Bhopal
8One of our employee is working as Senior Production Officer and he has attained retirement age but our management want to retain him with the company.
My question is that how we can continue him on his current job? Is there may be any legal problem? Can we hire him as a consultant ?
Please suggest in detail.
Regards.
Rajesh
From India, Bhopal
dear
it is not necessary to keep him as consultant,you can extend his period even after retirment age .it will be better to give only one year extention at a time.
you can continue to deduct his PF but no amount will go to pension and
both share will be deposited in PF only.
regards
j s malik
From India, Delhi
it is not necessary to keep him as consultant,you can extend his period even after retirment age .it will be better to give only one year extention at a time.
you can continue to deduct his PF but no amount will go to pension and
both share will be deposited in PF only.
regards
j s malik
From India, Delhi
hi rajesh
It depends on the management that what type they can use ur employee and another option is contractual basis employment ..
you can make a contract agreement between ur employer and employee and then he can start job continuesaly without any legal hurdles.
regards
devendra
From United States, Decatur
It depends on the management that what type they can use ur employee and another option is contractual basis employment ..
you can make a contract agreement between ur employer and employee and then he can start job continuesaly without any legal hurdles.
regards
devendra
From United States, Decatur
Dear Mr. Rajesh,
First Option:-
You can continue with him on the same terms and conditions of employement without giving him a fresh appointment letter. Do one thing give him a letter of extension of services (Normally for one year).
As far as the statutory provisions are concerned, he will no longer be the member of Eployees pension Scheme under EPF Act. rather both the contribution(24%) will be credited to his PF account, if he is at present a member of PF. Continue with the ESI Deduction if he is covered or coverable after extension of service.
Gratuity and other benefit will be continued if his Full & Final Settelment is not made.
Second Option:-
Settle his full & Final account and appoint him a fresh as a contractual employee on the fresh terms and conditions. The tenure of his contractual employement may be based on his health, nature of duties to be performed normally one year will be the better option.
This arrangement will not only reduce the financial burden in terms of gratuity etc. but also give a chance to exclude him from PF.
As per the provision of EPF Act a person will not be coverable, if he has withdrawn his PF after attaining the age of 55 years. Such empoyees comes under catagory of excluded employees.
Thanks
Mohd. Arif Khan
First Option:-
You can continue with him on the same terms and conditions of employement without giving him a fresh appointment letter. Do one thing give him a letter of extension of services (Normally for one year).
As far as the statutory provisions are concerned, he will no longer be the member of Eployees pension Scheme under EPF Act. rather both the contribution(24%) will be credited to his PF account, if he is at present a member of PF. Continue with the ESI Deduction if he is covered or coverable after extension of service.
Gratuity and other benefit will be continued if his Full & Final Settelment is not made.
Second Option:-
Settle his full & Final account and appoint him a fresh as a contractual employee on the fresh terms and conditions. The tenure of his contractual employement may be based on his health, nature of duties to be performed normally one year will be the better option.
This arrangement will not only reduce the financial burden in terms of gratuity etc. but also give a chance to exclude him from PF.
As per the provision of EPF Act a person will not be coverable, if he has withdrawn his PF after attaining the age of 55 years. Such empoyees comes under catagory of excluded employees.
Thanks
Mohd. Arif Khan
Dear Rajesh,
Please revised his terms of contract with extension of one year and keep continue for the same work,incase he is healthy you can extent further for another one year and so on......
As prescribed by Mr. Malik all PF amount deposited to EPF fund.
Dont exclude him from the social security benefits and he should get extra leave for taking care of his health & their should be no time boundation regarding visiting to medical experts etc..
There are so many listed company who are taking care of employees those who have already cross their retirement age.
Best Regards
Sajid Ansari-Delhi
From India, Delhi
Please revised his terms of contract with extension of one year and keep continue for the same work,incase he is healthy you can extent further for another one year and so on......
As prescribed by Mr. Malik all PF amount deposited to EPF fund.
Dont exclude him from the social security benefits and he should get extra leave for taking care of his health & their should be no time boundation regarding visiting to medical experts etc..
There are so many listed company who are taking care of employees those who have already cross their retirement age.
Best Regards
Sajid Ansari-Delhi
From India, Delhi
well, it is the management's prerogative to grant extension of service to a retiring employee based on the need of the organisation and the value added performance of the employee.
the employee could be given standard retirement settling his account and closing the legal benefits like pf/superannuation etc to keep the record straight.
offer him a suitable retention appointment on agreeable respectable terms for a certain period with a salary package and benefits excluding benefits like pf/superannuation etc
practical aspects whether this will set a wrong precedent tempting others to expect such extensions, or negotiate extensions, force extensions by keeping assignments pending, etc need to be carefully looked into and handled more as a special case.
moreover sending a signal that high performers are valued by the company beyond the normal terms of the employment and taken extra care of is a good signal promoting employee retention and reducing attrition rate and preventing moving to competitors etc as i would think. a straightforward case in isolation needs not much worry and other employees may appreciate the signal too as a right step by the management.
infact the trend as we hear is to hire retired employees as retainers with suitably designed packages even from outside for their valued experience which cannot be got from the youngsters, especially when there is a talent crunch all around.
in a unionised environment one may have to set norms of objective practice avoiding sense of favouritism towards certain employees more with a view to win the confidence of the union preventing emotional objections and issues of blocking claimed promotion chances of juniors in the pipeline - just mentioning to be aware and to think about if so.
granting retention extension to a retiring employee is a good hr practice not to worry much about as i would tend to think based on the need of the organisation - in general.
one could have a check with the labour advocate/consultant of the company for any implied legal issues and court precedents if any at all under certain cicumstances - more for personal knowledge and being on a confident footing.
hope this helps,
regards/kshantaram
From India, Ahmadabad
the employee could be given standard retirement settling his account and closing the legal benefits like pf/superannuation etc to keep the record straight.
offer him a suitable retention appointment on agreeable respectable terms for a certain period with a salary package and benefits excluding benefits like pf/superannuation etc
practical aspects whether this will set a wrong precedent tempting others to expect such extensions, or negotiate extensions, force extensions by keeping assignments pending, etc need to be carefully looked into and handled more as a special case.
moreover sending a signal that high performers are valued by the company beyond the normal terms of the employment and taken extra care of is a good signal promoting employee retention and reducing attrition rate and preventing moving to competitors etc as i would think. a straightforward case in isolation needs not much worry and other employees may appreciate the signal too as a right step by the management.
infact the trend as we hear is to hire retired employees as retainers with suitably designed packages even from outside for their valued experience which cannot be got from the youngsters, especially when there is a talent crunch all around.
in a unionised environment one may have to set norms of objective practice avoiding sense of favouritism towards certain employees more with a view to win the confidence of the union preventing emotional objections and issues of blocking claimed promotion chances of juniors in the pipeline - just mentioning to be aware and to think about if so.
granting retention extension to a retiring employee is a good hr practice not to worry much about as i would tend to think based on the need of the organisation - in general.
one could have a check with the labour advocate/consultant of the company for any implied legal issues and court precedents if any at all under certain cicumstances - more for personal knowledge and being on a confident footing.
hope this helps,
regards/kshantaram
From India, Ahmadabad
A VERY INTELLIGENT and RELEVANT discussion. My compliments to all participants. Please keep it up. These are the kinds of Discussions that add value, and makes this forum worthwhile. Regards.
From India, Delhi
From India, Delhi
Dear all!!! While I endorse the view that there are no legal hurdles in contiuing his service on extension basis (same to same in all respects)/appoint him as consultant (specific assignment and specified terms), retainer him on retainership basis primarly to train an understudy to take up the responbilities, I am of the view that PF is not needed if he has crossed the age of 58 years. One is entitled to withdraw from PF after he reaches 58 years of age.I have the experience of using retainership appointments and it has done wonderfully well for the company. Regards KK Nair
Hi Friend,
It is definetly depends of management decision.
If, the mgmt willing to offer legal payment you can continue with existing role provided, service could be extention(one year).
On other hand, if mgmt doesn't continue with legal liability for him, you can settle existing contract of service and issue fresh agreement as per requirement like consultant or retainer etc.,
Rajasekaran.MK
From India, Madras
It is definetly depends of management decision.
If, the mgmt willing to offer legal payment you can continue with existing role provided, service could be extention(one year).
On other hand, if mgmt doesn't continue with legal liability for him, you can settle existing contract of service and issue fresh agreement as per requirement like consultant or retainer etc.,
Rajasekaran.MK
From India, Madras
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