Sir, I am running two companies and I am planning to close one company. In that company nearly 50 employees are there. Now I want to transfer all those company employees to present company. I have changed their PF account to new company and also date of joining also changed. Now the employees are asking while gratuity calculation date of joining is required old date in pay Slip. But I said that It's not possible to change the date of joining in another company and I shall give one letter stating that at the time of retirement we will give gratuity by calculating actual date of joining only. But the employees are asking one letter. Can you guide me in this regard.
From India, Chennai
From India, Chennai
Dear member,
You may follow the following process:
a) Obtain a letter of resignation from all the employees of the company that will be closed.
b) Pay the gratuity and other dues to the employees as applicable.
c) You need to protect the seniority of the employees for whom the gratuity is not applicable. For them, include a paragraph in the appointment letter that for the calculation of gratuity and promotion purposes, their service will be counted from the date of joining of the former company. Otherwise, for all other matters, the date of joining of the present company will be counted.
Your query was on gratuity only. However, the employees could claim their seniority for promotion purposes also. Hence I recommend the inclusion of the clause on promotion and foreclosing matter now itself.
Thanks,
Dinesh Divekar
From India, Bangalore
7883You may follow the following process:
a) Obtain a letter of resignation from all the employees of the company that will be closed.
b) Pay the gratuity and other dues to the employees as applicable.
c) You need to protect the seniority of the employees for whom the gratuity is not applicable. For them, include a paragraph in the appointment letter that for the calculation of gratuity and promotion purposes, their service will be counted from the date of joining of the former company. Otherwise, for all other matters, the date of joining of the present company will be counted.
Your query was on gratuity only. However, the employees could claim their seniority for promotion purposes also. Hence I recommend the inclusion of the clause on promotion and foreclosing matter now itself.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi
How long you were running the first company. Closing company A is your decision and for that employee's should not be penalised.
So you should transfer their services to Company B. You should not force employees for resignation which would lead to forfeiture of benefits.
Being same group company with same Proprietor legally they are eligible for all benefits.
You can issue transfer from Company A to B and in that letter you can add the following :
Subsequent to this Transfer for the purpose of Gratuity calculation your date of joining with company A will be considered.
Also what will be the fate of accrued leaves? You may encash the EL or PL balance for eligible employees.
From India, Madras
How long you were running the first company. Closing company A is your decision and for that employee's should not be penalised.
So you should transfer their services to Company B. You should not force employees for resignation which would lead to forfeiture of benefits.
Being same group company with same Proprietor legally they are eligible for all benefits.
You can issue transfer from Company A to B and in that letter you can add the following :
Subsequent to this Transfer for the purpose of Gratuity calculation your date of joining with company A will be considered.
Also what will be the fate of accrued leaves? You may encash the EL or PL balance for eligible employees.
From India, Madras
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Pf name & dob change letter format.doc