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Retirement clause in Standing orders having the term “may” gives discretion to employer to extend the service : SC

March 9, 2023

Supreme Court in Chairmancum M.D. ITI Limited vs. K. Muniswamy & Ors. Civil appeal no. 13398 OF 2015 on March 2, 2023, while interpreting the clause 17(7)(iii) of the Certified Standing Orders under the Industrial Employment (Standing Orders) Act, 1946 of the employer wherein it was stated that “The employee who attains the age of 58 years may be continued in service upto the age of 60 years subject to medical fitness at the end of each year”, observed that the said clause only enables the employing entity to continue any employee in service till he or she attains the age of 60 (sixty) years subject to medical fitness at the end of each year and therefore the said clause does not confer any right on the employees to seek extension till the completion of 60 (sixty) years.