Hi Employees of one company are moved to another company from Partnership Firm to Pvt Ltd company. What all necessary documents to be given to employees.
Request you to please share the draft letter/statement as proof of change from XYZ Technologies to XYZ Pvt Ltd.
Regards,
Gargee
From India, New Delhi
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7Request you to please share the draft letter/statement as proof of change from XYZ Technologies to XYZ Pvt Ltd.
Regards,
Gargee
From India, New Delhi
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If it is a transfer from one employer to another employer, then it will be a new appointment letter with the organization mentioning the benefit transfer clause. Also, if it is the same employer who converted from a partnership firm to a private limited company, then you need not issue a separate letter to the employees.
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I agree with Manojkamble. Additionally, I would like to suggest that there should be a continuity clause in the service agreement for services provided in a partnership firm to maintain all employee benefits when issuing new appointment letters on the new company's letterhead.
From India
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From India
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Although the partnership company has metamorphosed into the private limited company, yet the latter does not inherit the assets and liabilities of the partnership firm unless it is specifically provided in the constitution of the company as well as in the dissolution deed of the partnership firm.
So the first question is, has it been specifically provided? Otherwise, all liabilities like gratuity or leave payment etc. have to be settled by the partnership firm, in deed full and final settlement, and a new chapter opens in the private limited company. If there is continuity provided, then there is no issue; in deed, a new order could be issued assuring the employees of continuity of service and ownership of earlier liability by the private limited company. Once the position is clarified, further details could be worked out.
From India, Mumbai
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So the first question is, has it been specifically provided? Otherwise, all liabilities like gratuity or leave payment etc. have to be settled by the partnership firm, in deed full and final settlement, and a new chapter opens in the private limited company. If there is continuity provided, then there is no issue; in deed, a new order could be issued assuring the employees of continuity of service and ownership of earlier liability by the private limited company. Once the position is clarified, further details could be worked out.
From India, Mumbai
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Dear Gargee,
What is discernible to me from your description is that there is a change in the constitution of the same entity from that of a partnership firm to that of a Private Limited Company. Therefore, there is no question of a transfer of the services of the employees consequent on the change in the constitution of the entity. After the change, the employees of the erstwhile XYZ Technologies would become automatically the employees of the present XYZ Private Ltd., without any break in service or adverse changes in their service conditions. It would be enough that authenticated entries are made in the service records of the existing employees.
From India, Salem
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What is discernible to me from your description is that there is a change in the constitution of the same entity from that of a partnership firm to that of a Private Limited Company. Therefore, there is no question of a transfer of the services of the employees consequent on the change in the constitution of the entity. After the change, the employees of the erstwhile XYZ Technologies would become automatically the employees of the present XYZ Private Ltd., without any break in service or adverse changes in their service conditions. It would be enough that authenticated entries are made in the service records of the existing employees.
From India, Salem
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Dear Gargee ji,
Both the companies' entities are different. A Private Limited Company is registered with the ROC, and its business commences from the date of incorporation as stated in its incorporation certificate issued by the ROC. You cannot show the transfer of any employee from any other company to the newly formed Private Limited Company unless there is an arrangement approved by the ROC in the memorandum of articles & association and by the High Court.
You need to issue fresh appointment letters to those employees, stating their joining date on or after the date of incorporation of the company. However, you can acknowledge their previous service years in this newly formed company by protecting their service with a specific understanding, board resolution, and agreement between the company and the employees.
Regarding formatting/drafting the appropriate letter, you may consider hiring a professional if you are unable to do it.
From India, Mumbai
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Both the companies' entities are different. A Private Limited Company is registered with the ROC, and its business commences from the date of incorporation as stated in its incorporation certificate issued by the ROC. You cannot show the transfer of any employee from any other company to the newly formed Private Limited Company unless there is an arrangement approved by the ROC in the memorandum of articles & association and by the High Court.
You need to issue fresh appointment letters to those employees, stating their joining date on or after the date of incorporation of the company. However, you can acknowledge their previous service years in this newly formed company by protecting their service with a specific understanding, board resolution, and agreement between the company and the employees.
Regarding formatting/drafting the appropriate letter, you may consider hiring a professional if you are unable to do it.
From India, Mumbai
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Notice of Employee Change.doc
HR-Policy-036 - Employee Transfer Policy - 11-10-2013.pdf