Dear Friend,
We want to transfer a few employees from one of our companies in Mumbai to another company in Kolkata, which is under the same group and managed by the same management.
In relation to the above, we need to transfer the PF, Gratuity, ESI, etc., of these employees from Mumbai to Kolkata.
Please advise on the above and the procedure for doing so.
Regards,
Arindam
From India, Jalandhar
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We want to transfer a few employees from one of our companies in Mumbai to another company in Kolkata, which is under the same group and managed by the same management.
In relation to the above, we need to transfer the PF, Gratuity, ESI, etc., of these employees from Mumbai to Kolkata.
Please advise on the above and the procedure for doing so.
Regards,
Arindam
From India, Jalandhar
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EPF of individual employees can be transferred to the new company by transferring the account using Form 13. Similarly, ESI cards can be transferred to the new location (Calcutta). For accounting and treatment of the contribution period and benefit period, please contact the ESI Inspector of your local.
Gratuity is not a fund managed by the Government. It is a payment given by the employer to an outgoing employee (having a minimum of 5 years of service). In such cases, the treatment will be like that of the Transfer of Undertaking. That is, Calcutta company takes over the Bombay company. Here, an understanding as to how the gratuity of the employees of the Bombay company has to be paid and continuous service of the employees of the Bombay company has to be counted needs to be decided. The Industrial Disputes Act provides that the transfer of the undertaking shall be permitted only after retrenchment benefits are paid to the employees. Alternatively, there shall be an understanding with the new company (the company which acquires - the Calcutta Company) to the effect that the service of the (Bombay) company employees will be treated as continuous with the service following in the (Calcutta) company. This is to avoid confusion relating to the payment of gratuity when these employees leave the Calcutta company.
On transfer itself, the gratuity can be settled so that all employees are made fresh to the Calcutta company. But in such cases, those who are not eligible for gratuity due to lack of service (5 years) will not agree to such a merger. Therefore, have a settlement on the issue and then act accordingly.
Regards,
Madhu.T.K
From India, Kannur
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4483Gratuity is not a fund managed by the Government. It is a payment given by the employer to an outgoing employee (having a minimum of 5 years of service). In such cases, the treatment will be like that of the Transfer of Undertaking. That is, Calcutta company takes over the Bombay company. Here, an understanding as to how the gratuity of the employees of the Bombay company has to be paid and continuous service of the employees of the Bombay company has to be counted needs to be decided. The Industrial Disputes Act provides that the transfer of the undertaking shall be permitted only after retrenchment benefits are paid to the employees. Alternatively, there shall be an understanding with the new company (the company which acquires - the Calcutta Company) to the effect that the service of the (Bombay) company employees will be treated as continuous with the service following in the (Calcutta) company. This is to avoid confusion relating to the payment of gratuity when these employees leave the Calcutta company.
On transfer itself, the gratuity can be settled so that all employees are made fresh to the Calcutta company. But in such cases, those who are not eligible for gratuity due to lack of service (5 years) will not agree to such a merger. Therefore, have a settlement on the issue and then act accordingly.
Regards,
Madhu.T.K
From India, Kannur
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HR-Policy-036 - Employee Transfer Policy - 11-10-2013.pdf
Steps to transfer PF amount.jpg