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...
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.
Dayanand L Guddin
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 ?
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
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