Hello Professionals,
Greetings!
I am associated with an IT firm (Software Development) and we want to register new company (Substitutory of current company) and want to shift few employee under new company, So could you please confirm how we can shift and what document needs to share with candidates.
according to me
1. New appointment letter.
2. Or letter of Sister concern company (Substitute) as appointment already shared with them.
From India, Ludhiana
Greetings!
I am associated with an IT firm (Software Development) and we want to register new company (Substitutory of current company) and want to shift few employee under new company, So could you please confirm how we can shift and what document needs to share with candidates.
according to me
1. New appointment letter.
2. Or letter of Sister concern company (Substitute) as appointment already shared with them.
From India, Ludhiana
What is "Substitutory of current company" ? Is it that you run a company and you want to form another company or you have already formed a new company which will replace the functions of the existing company, and for that all the employees should be transferred to new company? If this is the idea, then there are several things to be taken care of. First, there should be an understanding among the management of the existing company, the management of the new company and the employees regarding their length of service, treatment of service for payment of gratuity and other terminal benefits, treatment of unavailed leaves, treatment of service conditions including salaries and allowances, retirement age etc etc. Without any understanding about how to calculate gratuity in the new establishment you should not transfer the employees from the existing company to the new company. If the new company is ready to consider the service of the employees in the existing company, that should be clearly mentioned in the agreement with the employees. In the absence of such an agreement the existing company should be able to settle the gratuity and compensation for retrenchment u/s 25FFF or 25FFA of Industrial Disputes Act. In such scenario, it will be termination of employment from existing company and then issuing new appointment letter and joining the new establishment thereafter. At the same time, if the service conditions remain unchanged, and the length of service is considered then any office order evidencing the same would be sufficient to transfer the employees.
In addition tot he above you will have to take care of a process of exiting the employees from the EPF of existing company and registering them in the new company on the next day itself. The same should be done for ESI also.
From India, Kannur
4238In addition tot he above you will have to take care of a process of exiting the employees from the EPF of existing company and registering them in the new company on the next day itself. The same should be done for ESI also.
From India, Kannur
My suggestions and other aspects I wish to point out here are:
The regime might involve a) closure of past services with employees benefits are computed as on date and settled or b) continuation of 'past service' accountable for all purposes scenarios.
1. You have to draft an elaborate document consisting of conditions illustrating FAQ, impact on careers of the employees involved if "transferred" to a new Co., a subsidiary to your parent Co. and circulate among them. No tint of coercion in the process.
2. Device an 'Express your Option' format and collect their willingness accepting the offer, unconditionally which is going to be 'one time' offer with impacts, consequences and future risks, if any, well understood by them and accepted without any 'recourse' thereof. This 'expressing option' is an essential document to avert any future complications/disputes from the employees side.
3.Possibly, the employees would insist for a 'lien' to revert if conditions not going to be conducive in the newly formed Co. Your management should think over and come to a conclusion if and when sought after.
4.Opportunities for career growth, improved service conditions, work environment, job satisfaction etc to be addressed.
From India, Bangalore
The regime might involve a) closure of past services with employees benefits are computed as on date and settled or b) continuation of 'past service' accountable for all purposes scenarios.
1. You have to draft an elaborate document consisting of conditions illustrating FAQ, impact on careers of the employees involved if "transferred" to a new Co., a subsidiary to your parent Co. and circulate among them. No tint of coercion in the process.
2. Device an 'Express your Option' format and collect their willingness accepting the offer, unconditionally which is going to be 'one time' offer with impacts, consequences and future risks, if any, well understood by them and accepted without any 'recourse' thereof. This 'expressing option' is an essential document to avert any future complications/disputes from the employees side.
3.Possibly, the employees would insist for a 'lien' to revert if conditions not going to be conducive in the newly formed Co. Your management should think over and come to a conclusion if and when sought after.
4.Opportunities for career growth, improved service conditions, work environment, job satisfaction etc to be addressed.
From India, Bangalore
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.
Appointment letter-format.d oc