Retirement Policy

Purpose
The main purpose of this retirement policy is to state companys plan and position
regarding staff planning up to certain age to ensure maximum productivity from each
employee up to a certain level as well as to provide benefits to all employees after taking
off from their regular work and enjoy life afterwards.
Application Scope:
This policy is applicable to all permanent employees working in ................ and comes
into effect whenever a staff is 58/60 years old or has completed a consecutive service
length of 25 years in the.............., which ever is earlier.
Entitlement of Benefits upon Retirement:
All employees shall avail regular benefits of Provident Fund, Gratuity, leave encashment
and other admissible benefits such as per company rules and regulations.
Stages of Regular Retirement Procedure:
Stage 1 Notice of Retirement:
Payroll Department will provide regular list of employees to the HR Division who are
supposed to be under retirement policy One year ahead.
At least 6 /12 months, before the expected date of retirement, the HR Division will write
to the employee informing them of that date.
The letter will also inform the employee of their right to make a request to work beyond
that date, including the timescales for making such a request.
Stage 2: The Right of the employee to request for reappointment:
Upon receiving the letter from the HR Division he/she may make a request within 30
days to work beyond their anticipated retirement date.
The request must be made in writing to the employees Head of Department/Division,
and should set out the clear reasons, including the valid business reason, for extending
employment beyond the normal retirement age. The employer must also mention the
specific period that he/she wants to work

Stage 3: Assessment of the request:

The written request will be considered by the Head of Department in conjunction with the
Head of HR or their nominated representatives within 15 working days of receiving
request note and the recommendation shall be sent to the Board of Directors for final
approval or decision.
The decision of the Board of the Director(s) shall be specified in writing mentioning that

either the request has been refused

that the request has been agreed in the terms set out by the employee that the
request has been agreed for a shorter period than was specified by the employee,
and stating the new retirement date.

Stage 4: Official Settlement

Upon completion of the duration the company will complete all necessary documentation
for final settlement within next 30 days for the retired employee.
Contractual Reappointment:
The Management may consider the extension of services beyond the retirement age, if
any employee is found to be very much competent, exceptionally good performer and the
company can gain from the retention of valuable skills, knowledge and experience, may
be reappointed on Contractual Basis. In that case, extension of the service, if any, shall
be the sole discretion of the Management.
Contractual re appointment Process:
In case of re appointment of any employees, the company will consider the potentiality of
that employee. He /She might be re designated or hold the same position on a contractual
basis followed by a separate appointment letter mentioning the period of his /her job
extended.
The employee will be notified in this regard 30 days prior to his retirement schedule.
Entitlement of Benefits for Contractual Employees:
Salary and other benefits will be re fixed considering his/her present remuneration and
designation and he/she shall not be under regular Annual Appraisal System like
permanent employees.