Hi,
We are planning to transfer a few employees from one company to another company (two separate legal entities) within the group. We would like to protect the service benefits of the employees and hence we would not like them to resign and re-join. We are also aware that we cannot transfer an employee from one company to another without his/her consent.
Shall be thankful if someone can share the tri-partite agreement for formalizing such transfers between two legal entities.
Regards,
Srini Ramesh
From India, Chennai
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2We are planning to transfer a few employees from one company to another company (two separate legal entities) within the group. We would like to protect the service benefits of the employees and hence we would not like them to resign and re-join. We are also aware that we cannot transfer an employee from one company to another without his/her consent.
Shall be thankful if someone can share the tri-partite agreement for formalizing such transfers between two legal entities.
Regards,
Srini Ramesh
From India, Chennai
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Dear Srini Ramesh,
If an employee is being transferred from one group company to another, there is no need to rejoin him. His balances such as leaves, dues, etc., can be directly transferred to the group company. Normally, in an appointment letter, there is a clause of transfer. If your company issues the same, please refer to it.
Before transferring an employee, you need to take him into confidence and justify the exact need for your action and the benefits that the employee will receive. Also, you need to seek approval from his Head of Department.
Lastly, you need to provide a letter of transfer on the letterhead to such employees signed by the Head HR/Unit Head, specifying the date of the transfer. A received copy should be filed in their Personal File. The Personal File should be sent to the company where you intend to transfer your employees so that a smooth transfer can take place.
Regards,
Gurpreet Singh
From India, Anjar
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If an employee is being transferred from one group company to another, there is no need to rejoin him. His balances such as leaves, dues, etc., can be directly transferred to the group company. Normally, in an appointment letter, there is a clause of transfer. If your company issues the same, please refer to it.
Before transferring an employee, you need to take him into confidence and justify the exact need for your action and the benefits that the employee will receive. Also, you need to seek approval from his Head of Department.
Lastly, you need to provide a letter of transfer on the letterhead to such employees signed by the Head HR/Unit Head, specifying the date of the transfer. A received copy should be filed in their Personal File. The Personal File should be sent to the company where you intend to transfer your employees so that a smooth transfer can take place.
Regards,
Gurpreet Singh
From India, Anjar
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There is no need to have a separate tripartite agreement, since many group companies include the intercompany transfer clause in their offer of appointment letters, and this clause binds all employees.
Regards,
Ravichandiran
From India, Madras
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Regards,
Ravichandiran
From India, Madras
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Dear Ravichandiran, I Agree with you that Appointment letter has a clause of Transfer, But without taking the employee into confidence can lead to IR issues. Regards, Gurpreet
From India, Anjar
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From India, Anjar
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Both companies are separate entities, but the director is the same. In this case, do we consider them as a group company and not require the formalities of rejoining with the other company?
Each company has separate registration, accounts, and other statutory functions. In this case, should we consider them as a group company if the director is the same?
From India, Brahmapur
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Each company has separate registration, accounts, and other statutory functions. In this case, should we consider them as a group company if the director is the same?
From India, Brahmapur
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And also, we add some more points as per the above discussion held:
- No need to issue any appointment letter if your Board of Directors (BOD) remains the same.
- No need to do any formalities regarding the joining of the same.
- No need to separate them and rejoin again.
- No need to issue the transfer letter and no need to initiate the transfer formalities.
You can put them on deputation and then shift them after some time for a long.
From India, Noida
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- No need to issue any appointment letter if your Board of Directors (BOD) remains the same.
- No need to do any formalities regarding the joining of the same.
- No need to separate them and rejoin again.
- No need to issue the transfer letter and no need to initiate the transfer formalities.
You can put them on deputation and then shift them after some time for a long.
From India, Noida
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Dear Ramesh,
If in the appointment letter transfer clause is there with clearly mentioned intra-group transfer point, then you can simply pass the transfer order to the employee depending on your normal HR practice of your organization. Secondly, before the transfer, check out two things:
1. Labour license strength of the company where the employee is going to transfer. So that if required, they can update the Labour License strength.
2. Just check whether the PF Code of both organizations is the same or not. If not, then you need to put in more effort to transfer the PF case as soon as possible.
@Deepak: For deputation cases, I will not support, since the company planning to transfer means they are looking for long-term strategies. Deputation for 2 to 3 months is okay; you can manage. But in a longer period, you will face a lot of statutory problems (For example, any accident occurring to an employee after deputation, or any Enforcement Officer Inspection). That's my point of view.
Ratikanta Rath
From India, Durgapur
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If in the appointment letter transfer clause is there with clearly mentioned intra-group transfer point, then you can simply pass the transfer order to the employee depending on your normal HR practice of your organization. Secondly, before the transfer, check out two things:
1. Labour license strength of the company where the employee is going to transfer. So that if required, they can update the Labour License strength.
2. Just check whether the PF Code of both organizations is the same or not. If not, then you need to put in more effort to transfer the PF case as soon as possible.
@Deepak: For deputation cases, I will not support, since the company planning to transfer means they are looking for long-term strategies. Deputation for 2 to 3 months is okay; you can manage. But in a longer period, you will face a lot of statutory problems (For example, any accident occurring to an employee after deputation, or any Enforcement Officer Inspection). That's my point of view.
Ratikanta Rath
From India, Durgapur
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Dear Members,
Intra-group transfers can be effected by issuing a transfer letter specifying that this shall be deemed as continual service and all the benefits, terms & conditions remain the same. In case, as is usually the case, separate EPF/ESIC registrations are in place, they need to be transferred ASAP.
Resignation or rejoining shall not be required.
Regards,
Anil R
From India, Gurgaon
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Intra-group transfers can be effected by issuing a transfer letter specifying that this shall be deemed as continual service and all the benefits, terms & conditions remain the same. In case, as is usually the case, separate EPF/ESIC registrations are in place, they need to be transferred ASAP.
Resignation or rejoining shall not be required.
Regards,
Anil R
From India, Gurgaon
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Dear If you have written proof in appointment letter than you can give him to transfer another Unit. Regards Mahesh
From India, Rewari
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From India, Rewari
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