Taking retired staff as consultant - what all clauses I should mention in the letter?

Hi,

One of our staff has reached retirement age, and my company is considering retaining him as a Consultant. Could you please advise me on the clauses I should include in the letter?

Thank you.

After his retirement, clear all outstanding statutory dues and conduct a full and final settlement. Issue him a fresh appointment letter with all the relevant terms and conditions to ensure there is no continuity of service. If possible, create a gap between his retirement and new appointment, at least on paper.

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Have a clear gap between the date of retirement and appointment as a consultant. A proper contractual agreement between the employee and the company should be drawn up by a qualified lawyer. The agreement should include details such as pay, allowances, period of work, work timings, leave, medical care, scope of duty, location of work, and terms of exit and termination by the company.

Please let me know if you need further assistance or have any questions.

Hi Sacalaarunji, 19.5.16.

Thanks for your query regarding the consultancy letter to be issued to engage a retired employee.

As suggested by our seniors, first issue him a Superannuation letter appreciating his long and dedicated services, settle his F&FS, and if possible, arrange a send-off party. Maybe after 2 months, you can re-employ him as a consultant or advisor on a consolidated salary only. Such persons will be off the roll with no PF, etc. Therefore, a good pay can be offered to make him happy to serve the company well.

I can provide you with all rules, policies, and forms to hire a retired employee with all terms and conditions for appointment. I have set up an HR department, framed S.O, Leave, and Service Rules, along with forms for all HR jobs in soft copy for easy adoption in new companies. I have served 35 years in HR, IR, and Admin works of 7 manufacturing companies in Steel, Power, Electr - 2000+CL. Please provide your email id to send free details of 65 HR forms and 150 policies to solve your HR problems. Once you find them useful, you may pay a minimal fee to receive the actual policy or form. Contact - khanvsl_56@rediffmail.com, Ph: 09535470460 - C. Neyimkhan, HR Consultant, Ex-AGM-HR&A., HIRIYUR, Bengaluru. Ex-Member NIPM, Ex-Trainee-Member, IIM, Bengaluru.

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