Our company is shifting us from a Private Limited to another LLP , asking for resignation from the pvt limited and then they will give us offer letter from new entity , Question is how will they pass on all the benefits legally , earned leaves , Gratuity etc...
Since these two are two entities, joining the LLP will make the employee lose all the benefits of continuous service. It is okay you can transfer the PF (or ESI) from one company to another and that will not make any difference, but the continuous service required for gratuity, leave and retrenchment benefits (in the case of employees not having managerial powers) will be lost. In order to avoid it, there should be a settlement signed by the employee, management of Pvt Ltd Company and the management of LLP firm. The same should also be sent to the government for registration. The settlement should clearly mention how the service will be treated for the purpose of gratuity, leave and accumulation of leaves, retrenchment and lay off benefits and seniority for promotion and other service benefits, if any. It need not be made for each individual employee but one settlement applicable to all the employees is enough provided the same is signed by the office bearers of the trade union. In the case of a situation where there is no Union, the employees have to resolve some few employees to sign on their behalf.
From India, Kannur
4249From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Online Transfer.pdf
Steps to transfer PF amount.jpg