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Hi,

We are planning to transfer a few employees from one company to another company (two separate legal entities) within the group. We would like to protect the service benefits of the employees and hence we would not like them to resign and re-join. We are also aware that we cannot transfer an employee from one company to another without his/her consent.

Shall be thankful if someone can share the tri-partite agreement for formalizing such transfers between two legal entities.

Regards,
Srini Ramesh

From India, Chennai

Dear Srini Ramesh,

If an employee is being transferred from one group company to another, there is no need to rejoin him. His balances such as leaves, dues, etc., can be directly transferred to the group company. Normally, in an appointment letter, there is a clause of transfer. If your company issues the same, please refer to it.

Before transferring an employee, you need to take him into confidence and justify the exact need for your action and the benefits that the employee will receive. Also, you need to seek approval from his Head of Department.

Lastly, you need to provide a letter of transfer on the letterhead to such employees signed by the Head HR/Unit Head, specifying the date of the transfer. A received copy should be filed in their Personal File. The Personal File should be sent to the company where you intend to transfer your employees so that a smooth transfer can take place.

Regards,

Gurpreet Singh

From India, Anjar

There is no need to have a separate tripartite agreement, since many group companies include the intercompany transfer clause in their offer of appointment letters, and this clause binds all employees.

Regards,
Ravichandiran

From India, Madras

Dear Ravichandiran, I Agree with you that Appointment letter has a clause of Transfer, But without taking the employee into confidence can lead to IR issues. Regards, Gurpreet
From India, Anjar

Both companies are separate entities, but the director is the same. In this case, do we consider them as a group company and not require the formalities of rejoining with the other company?

Each company has separate registration, accounts, and other statutory functions. In this case, should we consider them as a group company if the director is the same?

From India, Brahmapur

And also, we add some more points as per the above discussion held:

- No need to issue any appointment letter if your Board of Directors (BOD) remains the same.
- No need to do any formalities regarding the joining of the same.
- No need to separate them and rejoin again.
- No need to issue the transfer letter and no need to initiate the transfer formalities.

You can put them on deputation and then shift them after some time for a long.

From India, Noida

Dear Ramesh,

If in the appointment letter transfer clause is there with clearly mentioned intra-group transfer point, then you can simply pass the transfer order to the employee depending on your normal HR practice of your organization. Secondly, before the transfer, check out two things:

1. Labour license strength of the company where the employee is going to transfer. So that if required, they can update the Labour License strength.

2. Just check whether the PF Code of both organizations is the same or not. If not, then you need to put in more effort to transfer the PF case as soon as possible.

@Deepak: For deputation cases, I will not support, since the company planning to transfer means they are looking for long-term strategies. Deputation for 2 to 3 months is okay; you can manage. But in a longer period, you will face a lot of statutory problems (For example, any accident occurring to an employee after deputation, or any Enforcement Officer Inspection). That's my point of view.

Ratikanta Rath

From India, Durgapur

Dear Members,

Intra-group transfers can be effected by issuing a transfer letter specifying that this shall be deemed as continual service and all the benefits, terms & conditions remain the same. In case, as is usually the case, separate EPF/ESIC registrations are in place, they need to be transferred ASAP.

Resignation or rejoining shall not be required.

Regards,
Anil R

From India, Gurgaon

Dear If you have written proof in appointment letter than you can give him to transfer another Unit. Regards Mahesh
From India, Rewari

Kindly send a format of intercompany transfer letter . The employees need to be transferred from parent company to sister company. Regards, Bhuvna Delhi
From India, New Delhi

Hello Everyone,

I had been working with the multinational company at X place during 2015. On September 27, 2015, I received a transfer letter to move to another site. I would like to mention that at that time, I was in a temporary payroll role. I received my transfer letter by email to move to Y place. I started there on October 4, 2015, and was given a new appointment letter. Interestingly, I had already received an appointment letter in 2012 when I initially joined the firm. Despite having transferred multiple times before, I never received an appointment letter at that time.

Now, the question arises: if I resign from the company, will the company consider me their employee from 2012 or from October 2015?

From India, Jalandhar

Dear Kumar,

If you have been continuously employed with the same employer, regardless of the location, and have received your salary from the same employer, you are eligible for the original date of joining, which is in 2012.

Please let us know if your service was transferred with continuity of service or not. Kindly provide relevant details for a proper reply.

Thank you.

From India, New Delhi

Dear Bhuvana Prakash,

Have you mentioned the transfer to Group Company clause in the appointment letter? By virtue of transfer, will there be a change in the employee's nature of work, remuneration package, change of location, etc.

From India, New Delhi

Greetings Srinath Sai Ram,

I joined the organization on 2nd January 2012. I received the offer letter initially, but the company did not provide me with an appointment letter at that time. I started at the Hoshiarpur site, and later the company transferred me to Kartarpur. I received a transfer letter for this move. Subsequently, I was transferred to another site in Kartarpur and also received a transfer letter. Throughout my tenure, I was a project-based employee, not a permanent employee of the company. Each time I was transferred from one site to another, I only received a transfer letter, not an appointment letter. My service with the company continued from January 2, 2012, until the date of my resignation.

On September 27, 2015, I received a transfer letter via email, and on October 4, 2015, I joined the new site where they finally provided me with an appointment letter, although my service was not disrupted. Recently, the company transferred me from Kartarpur to Ludhiana. This time, they provided both a transfer letter and an appointment letter.

From India, Jalandhar

Dear Kumaar,

Please peruse your own posts once again, with specific reference to the below mentioned:

Although I already received the appointment letter in 2012 when I joined the firm, I had actually joined the organization on 2nd January 2012. However, I only received the offer letter at that time, as the company did not provide me with the appointment letter. Based on the information provided, your date of joining should be your initial date of joining, i.e., 2012.

Thank you.

From India, New Delhi

If employee has not received appointment letter from previous company, & got transfer. In such case which letter we should give to employees. Regards, Mghana
From India, Mumbai

Someone Please provide me format of Transfer Letter from one company to another.
From India, Delhi

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