Reappointment of Employee Driver who's age above 58 Years - under which title like retainer or Trainees or somethings else?

Vipul3689
I need your valuable suggestion... Our company wants to appoint one Driver who's age above 58 Years. Now whether it comes under PF or ESIC or Professional Tax?
another thing if we appoint him then under which title like retainer or Trainees or somethings else?
umakanthan53
Extending the services of an employee beyond the age of superannuation is a matter subject to the necessity and willingness of both the employer and the employee. After the introduction of e-governance to EPFO, continuation of an employee beyond 58 years of age as a member of the Scheme is not possible. No such restriction in respect of contributions to ESIC and Professional tax as their purposes are totally different, the former being insurance against accidents and sickness and the latter being a tax levy for employment within the geographical jurisdiction of a Local Authority. You can not call a driver as retainer nor as a trainee and just designate him as driver only.
MahendraHR
Dear Umakanthan Sir,

if we employ candidate after his/her retirement age, is he/she eligible for benefits like Bonus, Gratuity etc. Shall we treat him/her as regular employee ? or we have to employ him/her on contractual bases ? if we appoint on contractual base how many years or months contract is practicible.
umakanthan53
Dear Mahendra,

Post-retirement employment under the same employer or elsewhere can be of two kinds viz., employment once again under a fresh contract of service OR engagement under a distinct contract for service. In the former, employer-employee relationship continues and so are the applicable conditions of employment signifying the status of the person employed as an organic part of the organization whereas there is no employer-employee relationship in the latter indicating the status of an external stake holder only.

In other words, if an existing employee is retained in service after his retirement on attaining the age of superannuation whether as a fixed term employee or as a regular employee, he is entitled to all employment benefits as applicable to other employees.
MahendraHR
okay sir,

so if we retain employee as regular employee we have to pay him/her all benefits like bonus, gratuity, esic, etc.

If we retain him/her on 11 months contract then bonus and esic may be there but gratuity will applicable or it will void due to not completion of 5 years of service or it may applicable if we continue renew the contract and he/she will complete 5 years of services with 11 months contract on continue renewal.
umakanthan53
Dear Mahendra,

It depends on the pattern of retention.
If the services of the employee is extended beyond the date of superannuation without retirement and settlement of retiral benefits, the extended period would add up to his total service. In such a situation he would be entitled to the usual benefits as before.
On the contrary, if he is permitted to retire on the date of superannuation and all his terminal benefits are settled, his reemployment would be a fresh innings commencing from the date after his superannuation. In such a situation his eligibility and entitlement to statutory benefits like gratuity etc., would be governed by the conditions laid down in the respective laws.
MahendraHR
Thank you very much Umakanthan sir for your warm response and sharing your knowledge.
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