BENGALURU: The Karnataka government's move to increase the retirement age of private sector employees from 58 to 60 is likely to be contested, say India's leading staffing companies. On the question of whether the move can be made applicable to the IT sector - given that they are exempt from the Industrial Employment (Standing Orders) Act - there's a near consensus that it cannot be done.Manish Sabharwal, chairman and co-founder of staffing company Teamlease, said that implementing the move in the private sector would be difficult and could result in companies approaching courts. "There are several wellmeaning labour laws that are abused. The government should focus on those," he said.Ajit Isaac, chairman and CEO of staffing firm Quess Corp , said central government rules give private employers the right to decide the retirement age. He said companies could use this to contest the Karnataka government's decision. He said the newer service sectors need more flexible laws and a younger workforce to ensure greater productivity. The Cabinet on Friday approved the proposal to increase the retirement age, and government sources have said it will apply to all private companies in the state, irrespective of where their corporate headquarters are. Priya Chetty-Rajagopal , executive director at RGF Executive Search , said a lot of private companies are worried that the move will increase the salary cost, as also the insurance costs. "A large part of employees in many sectors have a significant proportion of employees close to the retirement age," she added.On the applicability of the move to the IT sector, IT-BT minister of Karnataka Priyank Kharge said it would not be applicable since the sector enjoys exemption from the employment standing orders Act. He said it would be up to individual companies in the sector to decide whether they want to implement it.Employment standing orders mandate classification of the com pany workforce into permanent and temporary and also provide a written code on the rules pertaining to shifts, wages, termination, retirement and redressal. The IT sector has long been exempted from this and can therefore frame rules of its own. A senior labour department official also said that it will be voluntary for the IT industry . "While the standing orders exempt the industry from certain obliga tions, it is not ex empted from ev erything. However, E the government does not intend to ruffle any feathers at this point of time. For now, it is left to the industry to extend the retirement age," he said.Sabharwal felt that in a country where millions join the labour force every month, the move is not even a politically sound one. "Markets are taking care of it and is working well. The notion that governments have to decide the age profile of companies is not a good one in a state where the private sector is a big job creator," he said.

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