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kabita Banerjee
Hello Friends,
I want to know the transfer procedure in case of transfer of bulk employees from one company to another within the same group of companies as the previous company has closed. All the employees of previous company will be transferred to another company within the same group.
Please help me out to know the procedure of their transfer.
In this case, I guess their PF and gratuity is also to be transferred. Please help in understanding the entire procedure.
Thanks in advance,
Kabita

From India, Kolkata
manojkamble
377

Dear Kabita, If the transfer happening with in the same group, then you may not require to do more formalities. Yes PF and gratuity to be transferred to the new employer.

umakanthan53
6018

Dear Kabita,
Really it is an appreciable gesture on the part of your management to provide employment to the employees affected by the closure of the particular unit by transferring them en masse to another unit of the same group. However, your post is silent about the following vital aspects of the closure of the unit:
1) Whether the closed unit is a separate legal entity distinct from the transferee unit?
2) If yes, what was the total number of workmen employed therein at the time of closure?
3) In case it was 100 and above, whether permission for closure was obtained from the appropriate Govt?
4) Whether the answer is yes or no necessity for such prior permission, whether there was any bi-lateral agreement with the workmen covering the clauses of terminal benefits due to them on account of the closure?
5) What about the case of workmen not willing for the transfer?
6)If yes or no, whether the F&F settlement including closure compensation, gratuity, payment of wages due, proportionate bonus up to the date of closure, encashment of leave and recovery of loans and advances due from the workmen was made in respect of all the affected workmen including those not willing to accept the transfer due to the difficulties arising out of the relocation?
7) If not, whether the transfer is with continuity of the services rendered in the closed unit?
8) Whether the conditions of service like wages, leave, status of work etc., are the same in the transferee unit?
9) Whether the proposed transfer is pursuant to any bi-lateral agreement involving the workmen on one side and the transferee unit and the management of the closed unit on the other?
10) If not, whether the transferee unit has given any individual undertaking in respect of the aspects covered by q.nos (7) and (8) above?
Answers to the above questions are vital in this rehabilitation arrangement in order to avoid future problems, if any relating to the service conditions of the transferred employees and the legal commitments of the transferee unit.

From India, Salem
Shrikant_pra
264

You have to issue letter to employees from old company stating they are transferred to XYZ & their current terms & conditions will be maintained by new company. New company has to issue new letter repeating the earlier terms & conditions.
If you have LIC policy for gratuity then only you have to complete the formalities. When you mention terms & conditions are same, you accept the employee's earlier DOJ & as such protect the gratuity.
Yet question of leave will come. You may allow employees to carry forward their earlier leave balances or earlier company can pay off the leave wages.

From India, Mumbai
PRABHAT RANJAN MOHANTY
588

Dear Kabita,
I have gone through your post and it is not that simple as you understand. Mr. Umakanthan, the senior member of this forrum significantly brought the facts for your understanding. Hope this will help you to understand the whole affairs. I suggest your management should to appoint a consultant having expertise in dealing with closure, retrenchment and lay off matter. Thus you can have hassel free closure and transfer of staff.

From India, Mumbai
kabita Banerjee
Thank You All for all your valuable inputs and suggestion. Now I have got the clear picture about the transfer process. Prabhat, I do agree with you and thanks Mr. Umakanthan for sharing the facts about the entire process of Transition.
From India, Kolkata
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