Dear sir,
Where I am working, there are three companies. One of the companies has closed, and now I have to transfer all employees to a new company, including ESI, PF, and PT. Can anyone suggest to me what the process for this is? Additionally, in the previous company, the management only deducted PF from employees, and the company contributed to EPF. However, the management did not pay the ESIC for the past 5 years. Now that I have entered XYZ company, how can I pay the ESIC for the past 5 years in a simple way?
Thank you.
From India, Hyderabad
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Where I am working, there are three companies. One of the companies has closed, and now I have to transfer all employees to a new company, including ESI, PF, and PT. Can anyone suggest to me what the process for this is? Additionally, in the previous company, the management only deducted PF from employees, and the company contributed to EPF. However, the management did not pay the ESIC for the past 5 years. Now that I have entered XYZ company, how can I pay the ESIC for the past 5 years in a simple way?
Thank you.
From India, Hyderabad
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Hi, Inform employees to fill up the joining formalities as new employees and generate new emp codes accordingly and transfer the old PF account to new company. Regards Deepak
From India, Delhi
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24From India, Delhi
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In addition to this, there are other things to be taken care of as well, like Gratuity. Now, since all three companies are sister companies and one of them has shut down, and you all are transferring your employees from the closed firm to another, the gratuity angle should be considered. You must have employees who might have served for more than 5 years or are about to finish the said continuous tenure.
Acquisitions and Mergers are not just about handling issues related to finances and employees; HR has to be on their toes to ensure that employees are not adversely affected. The PFs should be transferred, as a change of company's name would not impact it.
You will have to issue new appointment letters to the employees in the new company's name. However, do mention in the new appointment letter that the prior experience with their ex-company (named [the shut down company's name]) would be considered for gratuity purposes.
Waiting for seniors to guide better.
From India, Mumbai
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Acquisitions and Mergers are not just about handling issues related to finances and employees; HR has to be on their toes to ensure that employees are not adversely affected. The PFs should be transferred, as a change of company's name would not impact it.
You will have to issue new appointment letters to the employees in the new company's name. However, do mention in the new appointment letter that the prior experience with their ex-company (named [the shut down company's name]) would be considered for gratuity purposes.
Waiting for seniors to guide better.
From India, Mumbai
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In the PF department, you can make an application to merge the funds of both companies. As proof, you are required to attach a high court order for merger/acquisition. If you do not have that, then an MoU or business transfer agreement executed between the two companies can be attached.
For ESIC, it would be better to open a new account, as pending contributions may create hurdles for you.
Regarding gratuity, you have to place a request to merge the gratuity funds for both companies.
Vinay
From India, Alwar
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For ESIC, it would be better to open a new account, as pending contributions may create hurdles for you.
Regarding gratuity, you have to place a request to merge the gratuity funds for both companies.
Vinay
From India, Alwar
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