Thank you, Sadaf. I believe that in this case, your query has been addressed by Ukmitra, Saiconsult, and myself. Based on their comments, I suggest you discuss this with your CS and proceed. It is important to involve the star performer in this process as transitioning from a large company to a start-up may make him somewhat uncomfortable. Please be aware that he will lose his EPF benefits and similar perks. Therefore, you and your CS should have a discussion with him, address any concerns he may have transparently, and assist him in making the decision that aligns with your company's goals. Keep in mind that persuading him to make this shift, agree to it, and feel positive about it, is crucial for the company's interests, and this will be your responsibility.
Please keep us updated on the progress. Best of luck to both of you.
From India, Mumbai
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139Please keep us updated on the progress. Best of luck to both of you.
From India, Mumbai
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Hi @Executor,
My inputs are only to help Sadaf deal with the situation since it is the company that should decide whether the sister concern is an independent unit engaged in a different business line or if it is part of the Parent unit, formed to supplement the business of the parent unit. In which case, there can be a transfer to the sister concern with a promotion. If there is no issue of independent units and it is immaterial, then as you said, it is advisable to treat it as a mere transfer to protect the continuity of service and other benefits like P.F. and gratuity to reward an efficient employee. I agree with you.
B. Saikumar
Mumbai
From India, Mumbai
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My inputs are only to help Sadaf deal with the situation since it is the company that should decide whether the sister concern is an independent unit engaged in a different business line or if it is part of the Parent unit, formed to supplement the business of the parent unit. In which case, there can be a transfer to the sister concern with a promotion. If there is no issue of independent units and it is immaterial, then as you said, it is advisable to treat it as a mere transfer to protect the continuity of service and other benefits like P.F. and gratuity to reward an efficient employee. I agree with you.
B. Saikumar
Mumbai
From India, Mumbai
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Dear All,
Greetings!
"Sister concern" has not been defined in the Indian IT Act and is often used for entities that have the same directors of the parent company as stakeholders. I am not sure if the sister concern in question is a legal entity at all. In such a case, there is no need to issue a fresh employment letter. One can issue a promotion letter with a transfer order to the relevant department/wing/sister concern. Necessary changes in wage and attendance registers can be made.
If the sister concern is a separate legal entity, then you have to follow the complete separation process as per relevant rules and then proceed with the complete joining and induction process in the new entity.
From India, Delhi
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Greetings!
"Sister concern" has not been defined in the Indian IT Act and is often used for entities that have the same directors of the parent company as stakeholders. I am not sure if the sister concern in question is a legal entity at all. In such a case, there is no need to issue a fresh employment letter. One can issue a promotion letter with a transfer order to the relevant department/wing/sister concern. Necessary changes in wage and attendance registers can be made.
If the sister concern is a separate legal entity, then you have to follow the complete separation process as per relevant rules and then proceed with the complete joining and induction process in the new entity.
From India, Delhi
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