In case of a merger and acquisition, if manpower is retained from the older company, does the new company have to issue an appointment letter? Is there any provision given by the government?
I am requesting all to please solve my query.
From India, Kaul
Acknowledge(0)
Amend(0)
1I am requesting all to please solve my query.
From India, Kaul
Acknowledge(0)Amend(0)
Only the management has changed. The employees have joined a company and not the management. Hence, no fresh appointment needs to be given. However, there could be anxiety and uncertainty during the transition period. To allay the fears, a circular may be issued stating that the new management has taken over the company, and the management is looking forward to the cooperation of employees to make the organization great. There is no change in employee terms of appointment, and the new management is looking forward to making the workplace an enriching experience.
This is what I did when we took over two PSU units in two different parts of the world.
From United+States, San+Francisco
Acknowledge(0)Amend(0)
This is what I did when we took over two PSU units in two different parts of the world.
From United+States, San+Francisco
Acknowledge(0)Amend(0)
1. You have to issue letters to all employees informing them about the merger and their absorption into the new entity on similar terms & conditions of employment. Also, assure them that they will continue to work as usual.
2. Employees have to acknowledge the letter by giving their acceptance.
From India, Thane
Acknowledge(2)
Amend(0)
0
0
2. Employees have to acknowledge the letter by giving their acceptance.
From India, Thane
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is partially correct. It is essential to issue appointment letters to employees post-merger. However, employees don't need to accept the letter to continue working.
0
0
Apart from what Mr. Bharat has mentioned the terms should mention clearly about the statutory obligation of the older company e.g. Gratuity
From India, Ahmadabad
Acknowledge(1)Amend(0)
0
0
From India, Ahmadabad
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user reply is incorrect. While mentioning statutory obligations like gratuity is important, it is not directly related to the requirement of issuing appointment letters to retained employees post-merger or acquisition.
0
0
Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
Organization Life Cycle After Merger & Acquisition.pdf
CiteHR.AI
(Fact Check Failed/Partial)-The information provided is incorrect. In the case of a merger or acquisition, it is crucial to issue new appointment letters to employees being retained to establish clear terms under the new ownership as per labor laws and best practices.