Hemang (Director) 15 February 2010
For a factory with daily wage employees, how to decide and implement retirement age? If the company has earlier declared retirement age as say 60 years and then govt. rule is for 58 years, can teh employee be retired? If the employee agrees to be retained after retirement, can he be paid half salary without PF/Gratuity and leaves?
Swami Sadashiva Brahmendra Sar (Nil) 15 February 2010
Standing Orders of the company can not override the legislative provisions. But, standing orders made in confirmity with statutory laws can not be overriden by government's administrative instructions.
Hemang (Director) 16 February 2010
Thank you for the reply, but I am still not clear as ours is a small company. What is standing order of the company? Does it mean letter of appointment? In case nothing is mentioned in the letter about retirement, then what has one to consider? I am asking from employee point of view so that we can make the correct procedure. In case company has given a letter with retirement age given as 60 years, and since the govt. retirement age is 58 years (after which PF is not credited to employee's account), can the person be retired at age 58? Or is it compulsary to continue the person till age 60 at same salary?
shrikant chede (law officer) 16 February 2010
it is not compulasary to continue till age of 60 ,Orders of the company can not override the legislative provisions
Hemang (Director) 16 February 2010
Thank you for the replies. I think I have read that govt. is planning to increase retirement age to 65 years. In case this happens, can we still retire employees at 58? Do we need to give them some signed terms and conditions for this to happen?
Swami Sadashiva Brahmendra Sar (Nil) 16 February 2010
A private company has to make it's own rules regarding it's employees. It is not bound to follow the retirement age fixed for government employees.
PBS KUMAR (HR - PROFESSIONAL) 17 February 2010
Dear All,
In A.P Model Industrial Employment Standing Orders Act says the employee at the age of 58 yrs will his retairment age. May be some of the states Model Standing orders fixed like that. Please go through.
Regards,
PBS KUMAR
Raj Kumar Makkad (Adv P & H High Court Chandigarh) 17 February 2010
Your personal conract with the employees shall work in the given case. If Govt. raises age till 65 years that is meant for its owned institutions and not for you. You are liable by your agreements which mention the age of the retirement as 60 years so follow it.
After the retirement, you can retain any employee at your own terms and conditions which may include half salary. There is no liability of PF and gratuity after retirement of such employees.
Hemang (Director) 17 February 2010
thank you everyone for replying. we have not made any contract with workers as there is no union. do we need to make some terms and conditions of employeement (or should I post another topic for this)?
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