Retirement Age Of 60 Years

What if the company forgets to retire a person at the age of 60 years, are there any risks?

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Dear Hmverma,

Is your company a government firm? If not, there is nothing to worry about. The only thing is that you have to pay all benefits at par with the service for individuals below 60 years of age.

Abbas.P.S

What if the requirement of retirement is in the standing orders? Will a violation make a difference? In PF payment, the entire payment has to be made to the PF account and nothing to the EPF.

Dear Saswata Banerjee,

If it is a government company, violation of rules will create problems. That is why I have asked whether it is a government firm or not.

Abbas.P.S

Dear Verma,

In some states, Shops and Establishment Acts, the provisions of the Industrial Standing Orders Act and rules are read into whereby the retirement age is prescribed at 58. Even if it is crossed inadvertently, the employee does not derive any right to continue. Please refer to my replies on retirement age and retirement policy on this website.

Thank you.

If retirement age is mentioned in the certified standing orders, that will be final. The employee cannot be retired before that in the absence of any rule to the contrary. If, for any reason, the employee continues in service beyond the retirement age in the standing orders, he should be paid his normal salary and other benefits, including EPF (without pension fund after 58), ESI, etc., until he is retired, and gratuity should be paid until the last day.

Varghese Mathew