PROCEDURE FOR PREMATURE RETIREMENT OF EXECUTIVES
1.0 OBJECTIVE
To provide for premature retirement of employees with a view to weed out inefficient or medically unfit employees or employees of doubtful integrity.
2.0 SCOPE & APPLICATION
The scheme shall apply to all regular/permanent employees of the Company other than those covered under the I.D Act. An employee who has attained the age of 50 years and is considered to be medically unfit or inefficient or of doubtful integrity by the Competent Authority may be considered for premature retirement under the scheme.
3.0 COMPETENT AUTHORITIES
In respect of employees in
the pay scale of Rs.14,500-18,700 and below : Managing Director
Employees in the scale of Rs.16,000-20,800 : Board of Directors
Employees in respect of whom President of : Govt.of India
India is the Appointing Authority
4.0 The criteria for judging the medical unfitness, inefficiency or doubtful integrity of executives proposed to be prematurely retired, are as follows:
(i) Inefficiency:
In efficiency would be evaluated on the basis of the Appraisal Reports. An employee who has secured consecutively “fair/Poor” for three years in his Appraisal Reports, may be deemed as a fit case for premature retirement.
(ii) Doubtful Integrity:
An employee who gets an adverse comment consecutively for three years on his integrity in his CCR would be recommended for premature retirement.
(iii) Medical unfitness
(a) If an employee has been continuously on leave on medical grounds for a period of 12 weeks (including Sundays and holidays ) or he ahs been on leave for reasons of sickness for a total period of 120 days (including Sundays and holidays) or more during a continuous period of six months of if a person though attending duties but is found to be mentally deranged, his departmental head may refer him to a medical Board for his thorough medical check-up and report:-
- The disease he is suffering from;
- Whether it is curable or incurable
- Whether the disease is infectious/contagious;
- In case of curable disease whether the person is likely to be fit to resume his normal duties within a period of 12 months.
b) If the person is not fit to resume his duties within a period of 12 months and in cases of employees suffering from incurable and infectious/contagious disease or suffering from lunacy or mental derangement and whose services cannot be utilised by the Company or whose attendance is likely to pose health hazard to others as may be certified by the Medical Board, Pre-mature retirement will be considered.
c) This premature retirement on medical grounds is independent of and without prejudice to the right of the Company under the contract of employment to dispense with the services of an employee on three months’ notice inter alia on grounds of medical unfitness in case of an employee who might not have even attained the age of 50 years.
d) BENEFITS UNDER THE SCHEME
An employee who is prematurely retired will be entitled to the following benefits:
(a) Pay for the notice period as may be applicable to the employee under the terms and conditions of service, plus leave salary for unavailed portion of earned leave. The quantum of leave salary will not exceed the maximum limit to which earned leave can be accumulated under the leave rules applicable to the employee.
(b) Full provident fund contribution of the employer with accretions there into the account of the employee subject to the provisions of the Provident Fund Rules applicable to the employee.
(c) Gratuity for each completed year of service or part thereof, as admissible under the Gratuity Rules.
(d) Transfer benefits for self and family for proceeding to hometown or to the place where the employee intends to settle in India, as admissible under the TA Rules.
DECISION No. 1
Appraisal Reports of those executives who have been graded as Fair/Poor or whose integrity has been considered doubtful, will be put up together every year to the Chief Executive, if such reports have not otherwise been put up to him as Reviewing Officer or as higher authority .
DECISION No. 2
The format of the order to be issued to the executive who is to be prematurely retired from the service of the Company is annexed.
APPENDIX
SPONGE IRON INDIA LIMITED
To
Dear Sir,
On the basis of the records, the Company has decided to retire you under the Premature Retirement Scheme with immediate effect. You will be entitled to the following benefits:
(a) Pay for the notice period of ____________months (as may be applicable under the terms and conditions of service).
(b) Leave salary for unavailed portion of the earned leave. The quantum of leave salary will not exceed the maximum limit to which earned leave can be accumulated under the Leave Rules.
(c) Provident Fund Contribution of the Company with accretions thereto in your account in accordance with the provisions of the Provident Fund Rules.
(d) Gratuity for each completed year of service or part thereof, as admissible under the Gratuity Rules.
(e) Transfer benefits for yourself and your family for proceeding to your home town or to the place where you intend to settle in India, as admissible under the TA Rules.
2. This issues with the approval of the Competent Authority.
Yours faithfully,
Cc to – Finance.