sharad2191
Hi
There are 2 queries that I have:
1. Is it fine to issue backdated appointment letters?
2. Lets say an employee worked with me for 6 months. I am working with my father. Now I decide to open up a company of my own and decide to take that employee with me. He/she has started to work with me. Is there a formal proceedure that is to be followed for shifting the employee from one organization to another and any documentation to be done with regards to the above.
I would be really obliged if someone can help me out with this?

From India, Delhi
nathrao
3131

It is not fine to issue back dated letters.
Officially terminate his employment in father company and give him appointment letter from your company.
Get a letter from the employee for release and employment in new company.
Maintain a paper trail and follow proper release procedure-like clearances,handing over duties to another person and then FNF also.

From India, Pune
sharad2191
Hi nathrao
Thanks for the reply. So basically a relieving letter and a appointment letter from the new company shall do. However I would need to issue a backdated letter as they have already shifted to my new organizationa and started working and there is no paper trail for appointment or termination. The work is almost same so there is no handover of duties or full and final as there was no notice period

From India, Delhi
saswatabanerjee
2383

In most progressive companies, if an employee is shifted from one company to a related or sister company, in general they will be given a continuation of service in the new Company. If you are following search the rule or approach, you should give a letter to the employer informing him of his transfer to the new company and confirming that is gratuity and other dues will be computed from the date of joining at the previous company.

While to set an extent you save money in this context that you do not have to give termination benefits at the time of transfer of the employee, in the longer term The employee gets a better deal because is great sweetie is going to be computed over a longer period of time.

On the other hand, you can terminate him in one company or ask him to resign and enjoying the other. In that case he has to be given is full terminal benefits and he joins the new company as a fresh employee. If is joining salary in the new company is above the 15,000 limit, he will not be covered under PF. PF department takes an adverse view of it and considers it as a deliberate attempt to avoid PS. So you then need to have complete roof and documentation that the two businesses are not related.

From India, Mumbai
Aparajita Banerjee
5

If you have opened your company in different name and without having any link with the company of your father then you have to give that employee a fresh appointment. The employee has to resign officially form the previous company and then only he or she can join in your company.
From United States, New York
sharad2191
Hi Aparajita,
Yes we have created a new partnership with he being a partner. All the employees salary is above Rs 15000 so they were not covered under PF with the previous company and my guess is that they will not be covered with the new company as well.
So the logical thing would be to get a resignation from the employee and then issue an appointment letter with the new entity. Also there would be a need to issue a relieving letter from the previous company.
Can you please confirm whether I should follow the above?

From India, Delhi
saswatabanerjee
2383

Sharad,
Any simple letter will do.
There are examples are on Google.
But you can make a simple appointment letter. Add a line to it saying "your appointment is effective from xx-xx-xxxx. However, for the purpose of statutory and terminal benefits, your employment with our sister concern _______ will be included."
Or words to that effect.

From India, Mumbai
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