Govt to ensure private firms enforce retirement age rule

21 lakh employees likely to benefit from Cabinet decision

The labour department will conduct inspections to ensure that employers implement the state government’s decision to enhance the retirement age of employees in the private sector from 58 to 60 years.

According to official sources in the labour department, the close vigil will continue for two years once the government’s decision comes into effect.

The state Cabinet on Friday gave its approval to increase the retirement age of employees in the private sector to benefit around 21 lakh personnel.

The Cabinet decision will be applicable to all private establishments which have an employee strength of 50 and above, irrespective of whether employees are hired on contract or otherwise, the sources said.

It will come into effect from the day the labour department gazettes the final notification by bringing in an amendment to Schedule – 1 of Karnataka Industrial Employment (Standing Orders) Rules, 1961 which pertain to the retirement age. The draft notification was issued by the department on December 7, 2009. The government is yet to notify the rule. The sources said the new rule will not apply to information technology, information technology enabled services, startups, animation, gaming, computer graphics, telecom, BPO and other knowledge-based industries at least till January 25, 2019.

The reason given for raising the retirement age, according to the Cabinet note, is that there should be uniformity in rules for employees and also that the average lifespan of humans has increased over the years. It will also help industries and companies to gain from the experience of its employees.

Interestingly, before the Cabinet took up the proposal, the file was sent to the law department and also the commerce and industries department for their opinion.

While the law department gave its approval, the commerce and industries department did not give its opinion and it was deemed that it had no objection to the proposal, the sources added.