Retirement process is subjected to rules and regulations - but managed by companies in the form of retirement policy by an org.
So every org. Should have a retirement policy and all the conditions must be stated in them.
Whether we have to inform labour department?
It’s considered to be a regular activity and special mention for the same is not required, as during the yearly inspection / submission of HR forms it needs to be mentioned.
How do we update in Payroll and other HR documents like PF, etc
They all need to be treated the same way when an employee is resigned and formalities needs to be completed. Example PF account needs to be closed saying ‘Retired’ and age above 58 years etc.,
Whether employee has to submit any letter or documents
Employer needs to send a letter to employee stating about his Retirement policy and his last date of working, and employee needs to agree the same and sign (stating there is no extension of work etc) and all the No due needs to be collected.
**Attached one letter format / Retirement policy sample
Hr-Retirement-Policy-Template.pdf (51.5 KB)