Kvjraghunath
Hr Manager
Dlghr89
Head Hr - Mahindra Aerospace
Santanarhodes
Reporting And Drafting
Nikusingh
Hr Corp Strategy

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
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

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

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

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

From India, Vijayawada
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™