santanarhodes Started The Discussion:
Dear HR's
Greeting for the day.......
My case is a little complicated....
I am working in a reputed company and we have our subsidiary company which is registered with shops acts. Now, our subsidiary company is taking on their rolls the empolyees from the parent company subject to their resignation from the parent company.
We have already accepted the deal and are releiving our employees to our subsidiary company.
Now my question is.....
1. Can this employees have transfer of gratuity from parent company to subsidiary company?
2. ARe they eligible for any other benefits from parent compoany.
Both the companies have different HR policies and salary structure...
Kindly help in this...
With regards
SANTANA
14th May 2010 From India, Ahmadabad

Hi,
In an unlikely event of a dispute there may be an issue.
a) If the relation between the parent and subsidiary company is strongly established then the practices of obtaining resignation from the parent and taking the employees on subsidiary roll becomes a questionalbe issue.
This can happen if a) any employee is losing: Gratuity, Seniority b) the benefits/ earnings in the subsidiary company are lesser than those in the parent company.
b) However if there is continuity of gratuity and service with all the benefits of the parent company being given in the subsidiary company, there will not be any issue. The structure of benefits may differ.
So in the legal interest it is better to provide continuity of gratuity and other benefits as might have existed in the parent company.
Kind regards
Dayanand L Guddin
17th May 2010 From Singapore, Singapore
Sir,
we are transferring few employees to our subsidiary which hasn't been registered under PF and all these employees PF is deducted from past 3 years.
My question is :
A. Can I deduct PF & pay on parent company no. till the time we have registration is in place ?
B. Can we stop their PF deduction, but employees benefits are getting screwed ?
C. Is their any provision under PF act which gives umbrella cover to group company & its subsidiary to transfer employees without having any compliance issues? like Tata, Bharti, etc.
Your timely response would be highly appreciated ?
regs,
Niks
15th September 2010 From India, Delhi
Mr. Singh
No, there is no provision in PF, You have to get new registration number for subsidiary company and deduct from their salaries and paid the same.
You can transfer PF amount from parent company to subsidiary company account submitting Form 13.
And one more thing if you paid PF from parent company account subsidiary company not get income tax benefit as per IT rules...
If u want to know more about PF see the link KVJ RAGHUNATH: THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
KVJ Raghunath
<link outdated-removed> ( Search On Cite | Search On Google )
9701966688
15th September 2010 From India, Vijayawada
Please share if you have any insights for this topic page and be part of our fostered professional community at Cite.Co. Avoid "Thank You" posts to preserve the integrity and readability of this page. Instead, help someone else with your knowledgeable inputs. If you have any related query please start a discussion thread.



 
 
 
 





Anonymous (Don't Display Username)


Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network