Dear All, I am working Manufacturing Company which is situated in Gujarat (A) and other our Group Company situated in Maharashtra (B). Both Company have separate Factory License and EPF, ESIC registration. Some Employees of Company B (Maha.) will transfer in our Company A (Guj.) within effect from 01st January 2014.

1) The same date our Company have Paid Holidays on 01st January 2014 that case what is DOJ?

2) Transfer Case the Leave Balance can also transfer?

3) In this case all employees (Company B (Maha.)) Service count as a Continue Service as per Gratuity Act, 1972 ?

4) If current we not deducted PF of our Employees which Basic Salary above Rs. 6500/- then all above Company B employees PF deducted as per management decision if his salary above Rs. 6500/-(780)? Can it possible?

Waiting your valuable suggestion on above case with same serial format.

Thank You,


From India, Gandhinagar
Hr, Ir, Law, Disc. Matters

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Dear Hitesh: The clarifications are as follows-

1. DOJ will be the actual date of joining at Gujarat. However, for salary computation 1st Jan has to be included by company A, , since this is a case of transfer and the principle is that once an employee is relieved from the previous organisation (B), then onwards he is notionally on the rolls of the new organisation (A) and has to be taken care by the new organisation. Since 1st Jan was a holiday at Gujarat, the employee could not physically join there but has to be paid for the day. .

2. Yes, the leave balance has to be transferred, since in transfer continuity of service is to be maintained.

3. Gratuity also would start from the day he is eligible in Company B though he is now with Company A.

4. Your query is not clear. But as I understand, in company B the employee was getting PF covered although drawing salary in excess of Rs. 6500/- but in company A such employees are not getting covered in PF. As per para 26-A(2) EPF Scheme 1952, the employee's membership is to be retained even after exceeding the salary limit. So PF membership would continue for him but the liability would be with respect to a max. of Rs. 6500/-

The principle is that where it is a case of transfer, the service conditions have to be protected and it cannot prejudically affect the employee's interest. Otherwise it will be an unfair labour practice, if the employee is a workman.


From India, Bhopal

Dear Hitesh: There has to be clarity as to whether there is transfer of employee or not. Transfer could be between two sister units of the same company or group of companies. As per Partnership Act, every partnership is different, particularly so when there are different partners in the two companies. So, the partnerships are different companies, there cannot be any transfer of the employees from one to another. Is company A ready to acknowledge and discharge the liabilities under gratuity, leave , seniority or other service benefits with respect to B company? A formal written deed of acceptance of liability has to be there otherwise there is no legal binding on Company A for the liabilities with respect to company B. Hope the above clarifies. My earlier opinion was under the impression the company A & B are sister undertakings. kk
From India, Bhopal
Thank You very much for the replay now i clear in this points. as legal they no liable in Leave and Gratuity in Gujarat Company. they joined our Guj. Company as a new joinee. Once again thank you.
From India, Gandhinagar

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