TERMINATION DUE TO RETIREMENT AGE

Dear all,
In the first instance, if there are around 900 employees in your Organisation / Plant, you should have the Standing Orders of the Company ( in the absence of which the Model Standing orders of the concerned State is applicable ). The standing orders clearly specifies the Service conditions inter-alia the Retirement age of various categories of employees say 55, 58, 60, 62 as the case may be.

When such is the case, how one can think of demanding resignation of an employee who is fast approaching his age of superannuation. We must be conscious of the legal implication of Resignation Vs. Retirement on superannuation. Whereas retirement entails gratuity, leave encashment, Pension if applicable, PF accumulation and other benefits as per the rules of the company- Resignation normally would involve forfeiture of portion of leave encashment, non-payment of pension and other retirement benefits.

Even to think of terminating an employee reaching 60 yrs of age is preposterous. Unless there are very serious and grave charges against such employee which warrants Disciplinary Action for termination ( which I presume is not in the instant case ), such action will have extreme adverse effect on the company as well as the HR Dept.
A.Irudayam, M.A., M.B.A., LL.B.
Advocate and HR Consultant
+919940686632

dear
dont terminate him,retire him as per terms of appointment.if you donot have terms in appointment letter ,than such a big organisation will defnitely have certified standing orders.as per standing orders retire him.
tks
js malik

I fully endorse the views expressed by Shri Irudayamarockiam. It is advisable to have a basic
knowledge of labour laws to those who work in HR department.

KCS Kutty, Chennai

Dear all,
I was about to conclude my observation with what Mr. KCS. Kutty has written but somehow chose not to to be so forthright. I congratulate Mr KCS. Kutty for his forthrightness with a sense of moral authority. It indeed is a pleasure to have people not only sharing their expertise but also excersising their moral authority while puttingtheir views across. I want Mr.KCS.Kutty to continue the same spirit, which is bound to send s strong message across.
A.Irudayam

Dear Sir,

This is in continuation of Shri Irudayamarockiam's message. I was a bit straight forward. The comments I made from my experience. I am handling labour laws in training programmes for Administrators and HR people for the last 17 years. I have observed that many a time, decisions are taken emotionally without realising the legal consequences.

The question raised was "to make a person resign who is 60+". Resignation is a voluntary act, which no one can insist. Secondly, terminating a person, who is above 60. A person in service will retire from service on attaining the age of superannuation. The remedy is to fix the age of superannuation, if it is not already prescribed.

Thank you Irudayam sir, for your comments.

KCS Kutty, Chennai.

dear all

thanks for your valuable reply.

I am well awared abt the laws but the problem is that we dnt hv certified standing order due to delay from management approval. the decision making here of management is poor & often delayed inspite of giving reminders.

we cannot keep tht employee in any case as employee performance is also very poor. basically she is in housekeeping dept,and as there is pressure for of cost cutting, replacemnt cn tk place nly if she goes so as per me there is no other way except to convince her to resign.

but only fear is tht she has good terms with the union tht has stood up against the co.though currently everything is calm & settled.

require your suggestions