Dear Mr. Kamal,
He is very much on the system of Statutory deductions of PF PT etc... Somehow convinced and got the superannuation done, gave a letter as a consultant. Will stop all his statutory deduction w.e.f 1/5 2013. But he will continue to work...
From India, Bangalore
1He is very much on the system of Statutory deductions of PF PT etc... Somehow convinced and got the superannuation done, gave a letter as a consultant. Will stop all his statutory deduction w.e.f 1/5 2013. But he will continue to work...
From India, Bangalore
Good Lakshmi, As i said earlier you will gain from his experience. Also please do provide him his gratuity, PF settlement Leave encashment or any other entitlement etc. Good job done.
From India, New Delhi
From India, New Delhi
Lakshmi Subramanian
You need to first asceratin whether you have stipulated any age as the age of superannuation either in the servcie rules/standing orders/settlments or letter of appointment, failing which you can not unilatreally retire an employee after a particular age which you consider as the age of superannuation and the employee is entitled to contnue in the srvcie till he becomes medically unfit. If you retire him on your own, it amounts retrenchment , if he were a workman, as Verghese Mathews said or an unlawful termination, if he is in mangerial cadre. Therefore first asceratin this position before initiating any action..
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
You need to first asceratin whether you have stipulated any age as the age of superannuation either in the servcie rules/standing orders/settlments or letter of appointment, failing which you can not unilatreally retire an employee after a particular age which you consider as the age of superannuation and the employee is entitled to contnue in the srvcie till he becomes medically unfit. If you retire him on your own, it amounts retrenchment , if he were a workman, as Verghese Mathews said or an unlawful termination, if he is in mangerial cadre. Therefore first asceratin this position before initiating any action..
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
Dear Saikumar,
In the present case the employee concerned is a family friend of the owner of the company. It is very less likely that he will raise any objection. Moreover he has not discontinued working. He is still working as a consultant. I hardly sense any problem by any body in the given circumstances.
Yes for sure Lakshmi should implement and convay the age of supeannuation to all the employees as soon as possible to avoid any such situation any further.
Dear Lakshmi,
Please inform the Members as to have you given him all the retiral benefits or not.
From India, New Delhi
In the present case the employee concerned is a family friend of the owner of the company. It is very less likely that he will raise any objection. Moreover he has not discontinued working. He is still working as a consultant. I hardly sense any problem by any body in the given circumstances.
Yes for sure Lakshmi should implement and convay the age of supeannuation to all the employees as soon as possible to avoid any such situation any further.
Dear Lakshmi,
Please inform the Members as to have you given him all the retiral benefits or not.
From India, New Delhi
Dear kamalKants
My reply is strictly from the point of view of employer-employee relationship. However Laxmi subramanian pointed out that the employee concerned is refusing to accept the superannuation letter. No means is better, if things can be settled amicably.Thanks.
.
B.Saikumar
HR & labour Law Advsior
Mumbai
From India, Mumbai
My reply is strictly from the point of view of employer-employee relationship. However Laxmi subramanian pointed out that the employee concerned is refusing to accept the superannuation letter. No means is better, if things can be settled amicably.Thanks.
.
B.Saikumar
HR & labour Law Advsior
Mumbai
From India, Mumbai
Dear Lakshmi,
First of all please learn the scope, definition and applicability of usage the terms like termination, suspension under the ambit of statutory laws applicable in your area.
Secondly the termination is negative and adverse in any one 's career which is seldom used even in large and reputed industries. This should be applied with a lot of process, procedures which come only with years experience and instances accumulated over a period of time. Are you armed with this?
What is your authority in dealing with the situations like this ? Is it assumed or written down clearly in your functions and responsibilities? There are many senior and competent managers workers/staff/Managers well past 65 years working across various industries with better contribution. For example Ex-defense employees.
You need to get the top management 's active role and contribution when dealing with senior employees by age, authority and competency. Otherwise you will land into trouble and you will land company into the troubles which is difficult to resolve at a later stage. Take a smart and cautious more importantly sensible step. At the best see the contribution , physical and mental strength and they overshadows his age you need not worry at all. What is the support you get from the management in this case.
V. Rangarajan. ( Chennai)
From India, Pune
First of all please learn the scope, definition and applicability of usage the terms like termination, suspension under the ambit of statutory laws applicable in your area.
Secondly the termination is negative and adverse in any one 's career which is seldom used even in large and reputed industries. This should be applied with a lot of process, procedures which come only with years experience and instances accumulated over a period of time. Are you armed with this?
What is your authority in dealing with the situations like this ? Is it assumed or written down clearly in your functions and responsibilities? There are many senior and competent managers workers/staff/Managers well past 65 years working across various industries with better contribution. For example Ex-defense employees.
You need to get the top management 's active role and contribution when dealing with senior employees by age, authority and competency. Otherwise you will land into trouble and you will land company into the troubles which is difficult to resolve at a later stage. Take a smart and cautious more importantly sensible step. At the best see the contribution , physical and mental strength and they overshadows his age you need not worry at all. What is the support you get from the management in this case.
V. Rangarajan. ( Chennai)
From India, Pune
Dear Mr. Rangarajan
Yes you are right, there are many old employees in the organisation who are contributing well towards org growth. But from the HR perspective we need to adhere to certain statutory bindings that are applicable for an industry. We are shortly going in for various standards such as ISO, SA 8000. These standards requires good documentation and also practicality. Yes Management support is with me and it is not an unilateral decision. Now he has accepted the superannuation notice, given a fresh application for appointment as a consultant and we have issued him a letter as a consultant. So now the problem is solved.
Rgds
Lakshmi
GM HR
From India, Bangalore
Yes you are right, there are many old employees in the organisation who are contributing well towards org growth. But from the HR perspective we need to adhere to certain statutory bindings that are applicable for an industry. We are shortly going in for various standards such as ISO, SA 8000. These standards requires good documentation and also practicality. Yes Management support is with me and it is not an unilateral decision. Now he has accepted the superannuation notice, given a fresh application for appointment as a consultant and we have issued him a letter as a consultant. So now the problem is solved.
Rgds
Lakshmi
GM HR
From India, Bangalore
Hello Lakshmi,
While the present situation has been successfully handled, suggest focus on streamlining the HR policies, like Kamal Kant Tyagi mentioned, to avoid recurrence of such or similar situations in future.
For now, this has been a case of superannuation. There COULD be other aspects where the HR policies MAY be lacking clarity.
Rgds,
TS
From India, Hyderabad
While the present situation has been successfully handled, suggest focus on streamlining the HR policies, like Kamal Kant Tyagi mentioned, to avoid recurrence of such or similar situations in future.
For now, this has been a case of superannuation. There COULD be other aspects where the HR policies MAY be lacking clarity.
Rgds,
TS
From India, Hyderabad
Dear Members,
By declaring / enrolling an employee as consultant does not mean statutory deductions will stop. It has been observed by the Honorable courts that in the past many employers were and are using this ploy (enrolling employees as consultants) to avoid statutory deductions. So there are directions on this issue by statutory bodies / court. It is clearly mentioned by them, any full time employee irrespective of consultant / contract / etc is liable / eligible for statutory deductions.
Sunil Kumar
From India, Chicalim
By declaring / enrolling an employee as consultant does not mean statutory deductions will stop. It has been observed by the Honorable courts that in the past many employers were and are using this ploy (enrolling employees as consultants) to avoid statutory deductions. So there are directions on this issue by statutory bodies / court. It is clearly mentioned by them, any full time employee irrespective of consultant / contract / etc is liable / eligible for statutory deductions.
Sunil Kumar
From India, Chicalim
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