Sethupathy
Sr.manager-hr

Prime Sponsor - FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Dear Seniors
I have a doubt regarding PF & Graduity. Kindly help me if you can.
I work for a company that has several sister concerns. Right now we are starting a new project and we want to shift some of our employees to a newly formed sister concern that is a registered company.
My doubt is that most of the employees have completed more than 5 years with us, what would happen to thier graduity can we carry it forward to new company as it is a sister concern.
Also what should be done regarding PF. Can we show it as a transfer so that we dont have to go in for a new PF number or do we have to go in for a whole new PF number.
Thank you for your help.
Juliana Monteiro
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear Juliana Monteiro,

If your employer has decided to set up the new sister concern as a separate entity, my sincere advice is to close and settle all accounts including the gratuity amount in the parent company itself to avoid unnecessary consequences to the new set up.

As per as PF is concern the employees transferred over there can transfer their PF accumulations to the new company with Form 13 if new no is alloted. Go for a new PF no that is advisable.

Till most of the employees are willing to carry their service record to the new company, please document it in a proper legal way from appointment orders to the transfer of liability for Gratuity, Earned Leaves, Personal Loans etc.,

One more notable point is there, if the new setup is required some experienced persons for quite some time to stabilize its operations, then depute them to the new concern for a short period of time say 6 months to one years without altering their service records.

S.Sethupathy,

Excellent HR Services,

Erode
Prime Sponsor - Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™