Dear Seniors,
I am working in a software company, and we have recently started a sister concern. There is a manager who has recently been confirmed in my organization, and my boss wants him to be shifted to the new sister concern with a higher designation.
My query is, do I have to give a new offer letter to the manager on the letterhead of the sister concern, or do I only need to give him a letter for promotion?
Please help.
From India, Mumbai
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8I am working in a software company, and we have recently started a sister concern. There is a manager who has recently been confirmed in my organization, and my boss wants him to be shifted to the new sister concern with a higher designation.
My query is, do I have to give a new offer letter to the manager on the letterhead of the sister concern, or do I only need to give him a letter for promotion?
Please help.
From India, Mumbai
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Should give him a fresh appointment letter, mentioning the transfer, promotion, and other clauses as per your sister company. Is the sister company in the same state or another location? If in another location, then need to provide all the amenities for transferred employees such as:
- Salary as per the state's cost of living.
- Relocation allowances.
- Hardship allowance.
- Transfer of his household material/family, one-time fare charges will be covered by the employer.
Regards,
B. Anand Kumar
From United Kingdom, London
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- Salary as per the state's cost of living.
- Relocation allowances.
- Hardship allowance.
- Transfer of his household material/family, one-time fare charges will be covered by the employer.
Regards,
B. Anand Kumar
From United Kingdom, London
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Hi,
Issue him a new offer letter under Sister Concern Letter Ahead. Ensure you collect the resignation letter from the parent company. If the management wants to maintain continuity of service for the employee with the same start date as the parent company, it needs to be documented properly. I believe the CS will guide you on this matter based on the business model under which your parent company and sister firm are registered.
To avoid any legal problems and other associated issues, it is advisable to request resignation and issue a new appointment letter. Your parent company has nothing to do with his appointment. Remember, there are legal liabilities.
Ukmitra
From Saudi Arabia, Riyadh
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Issue him a new offer letter under Sister Concern Letter Ahead. Ensure you collect the resignation letter from the parent company. If the management wants to maintain continuity of service for the employee with the same start date as the parent company, it needs to be documented properly. I believe the CS will guide you on this matter based on the business model under which your parent company and sister firm are registered.
To avoid any legal problems and other associated issues, it is advisable to request resignation and issue a new appointment letter. Your parent company has nothing to do with his appointment. Remember, there are legal liabilities.
Ukmitra
From Saudi Arabia, Riyadh
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Generally, the appointment letter contains the clause that "you may be transferred or deputed to any of our branches, sister concerns, or associate companies with/without extra benefits." If the appointment letter says so, no fresh letter needs to be issued except a transfer letter with or without relocation assistance as deemed fit by the organization.
From India, Mumbai
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From India, Mumbai
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Hi Andrew,
The clause you mentioned would be used against an employee if he/she refuses such a transfer. However, due to certain legal implications, it is required to issue a new offer letter under the new firm due to various statutory requirements and certain legal liability clauses.
Besides, the entity/understanding in which both companies have been formed and registered between them matters, hence it is always advised to involve a CS in such matters. In most cases I have handled, CS and Law personnel have suggested going with a new offer letter if the employee's service period is less than a year or so.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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The clause you mentioned would be used against an employee if he/she refuses such a transfer. However, due to certain legal implications, it is required to issue a new offer letter under the new firm due to various statutory requirements and certain legal liability clauses.
Besides, the entity/understanding in which both companies have been formed and registered between them matters, hence it is always advised to involve a CS in such matters. In most cases I have handled, CS and Law personnel have suggested going with a new offer letter if the employee's service period is less than a year or so.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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@uk Mitra,
Since it was an open-ended question, the advice was open-ended. I never knew that legal implications are involved. However, it differs from case to case and varies across different industries.
Thanks for your intervention.
Regards!
From India, Mumbai
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Since it was an open-ended question, the advice was open-ended. I never knew that legal implications are involved. However, it differs from case to case and varies across different industries.
Thanks for your intervention.
Regards!
From India, Mumbai
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First, you need to decide whether the two units are independent units or integrated with each other, and whether the shift to the sister concern is after resignation from the parent unit or not. This will help you determine whether you should issue a fresh appointment letter or an order of transfer with promotion.
B. Saikumar
In-House
From India, Mumbai
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B. Saikumar
In-House
From India, Mumbai
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Saiconsult.. I think Sadaf Khan is asking our help to make that very decision. Is that right Sadaf? Also, what is your CS saying?
From India, Mumbai
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From India, Mumbai
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Dear Executor,
I have a query regarding whether I should issue a new offer letter to the Manager as he has been promoted, resulting in changes to his roles and responsibilities. The sister concern is a small unit with 4-5 employees currently, while my parent company has a staff of 50 employees.
The manager has not yet resigned from the parent company, and my boss wants him to transition to this small unit. Essentially, he will be the sole Senior Manager for this sister concern.
Thank you.
From India, Mumbai
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I have a query regarding whether I should issue a new offer letter to the Manager as he has been promoted, resulting in changes to his roles and responsibilities. The sister concern is a small unit with 4-5 employees currently, while my parent company has a staff of 50 employees.
The manager has not yet resigned from the parent company, and my boss wants him to transition to this small unit. Essentially, he will be the sole Senior Manager for this sister concern.
Thank you.
From India, Mumbai
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