Intercompany Transfer Within Same Group - CiteHR
Amit.trpth1@gmail.com
Human Resources
Nausheen Warsi
Hr Manager
Srinath Sai Ram
Hr Manager
Ratikanta
Asst Manager Hr
KummarVikaas
Civil Lab Technician
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Hi,
We are planning to transfer a few employees from one company to another company (two separate legal entities) within the group. We would like to protect the service benefits of the employees and hence we would not like them to resign and re-join. We are also aware that we cannot transfer an employee from one company to another without his / her consent.
Shall be thankful, if someone can share the tri-partite agreement for formalizing such transfers between two legal entities.
Regards,
Srini Ramesh
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Dear Srini Ramesh,
If an employee is being transferred from one group company to another, there is no need to rejoin him. His Balances such as Leaves, Dues, etc can be directly transferred to the group company.
Normally in an appointment letter there is a clause of Transfer. If your company issues the same please refer to it.
Before transferring an employee you need to take him in confidence and justify the exact need of your action and what will be the benefits that the employee will get. Also you need to take approval from his Head of Department.
Lastly you need to give a letter of transfer on Letter head to such employees signed by the Head HR/ Unit Head, Specifying the Date of such transfer. A received copy should be filed in their Personal File.
The Personal File should be sent to the company where you intend to transfer your employees so that smooth transfer can take place.
Regards,
Gurpreet Singh
There is no need to have separate tripartite agreement, since many group companies the inter company transfer class in their offer of appointment letter and this clause binds all employees.
Regards
Ravichandiran
Dear Ravichandiran, I Agree with you that Appointment letter has a clause of Transfer, But without taking the employee into confidence can lead to IR issues. Regards, Gurpreet
Both the companies are separate entities but the director is same. In this case do we consider as group company and not required the formalities of rejoin with other company.
Both company has separate registration, account and other statutory function, in this case shall we consider as group company if director is same?
And also we add some more points as per above discussion held:
> No need to issue the any appointment latter, if your BOD is same
> No need to do the any formalties regarding the joining of the same
> No need to separate them and rejoin again
> No need to issue the transfer latter and no need to initiate the transfer formalties.
So you can put them as deputation and then shift them after some time for a long
Dear Ramesh,
If in Appointment letter transfer clause is there with clearly mentioned intra group transfer point.
Then you can simply pass the transfer order to employee depend on your normal hr practice of your organisation.
Secondly, before transfer check out 2 things
1. Labour licence strength of the company where employee going to transfer.So that if required they can update Labour Licence strength.
2. Just check out whether PF Code of both the organisation are same or not . If not then u need to give more effort to transfer the PF case as soon as possible.
@Deepak:- For Deputation case i will not support since company planing to transfer means they are looking for long term strategies. Deputation for 2 to 3 months ok you can manage. but in longer period you will face lot of statutory problem (Just example any accident occur to employee after deputation, or any Enforcement Officer Inspection) . My point of view.
Ratikanta Rath
Dear Members,
Intra-group transfers can be effected by issuing a transfer letter specifying that this shall be deemed as continual service and all the benefits, terms & conditions remain same. In case, as usually does, separate EPF /ESIC registrations are there, same need to be transferred ASAP.
Resignation or rejoining shall not be required.
Regards,
Anil R
Dear If you have written proof in appointment letter than you can give him to transfer another Unit. Regards Mahesh
Kindly send a format of intercompany transfer letter . The employees need to be transferred from parent company to sister company.
Regards,
Bhuvna Delhi
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