Labour Law & Hr Consultant
Deputy General Manager
1, Persona Bio Data form
2, Assumption of Duty
3, Academic, personal reference for HR Auditing
4, Guarantor form and issue them employment letter on new letter head paper
8th March 2016 From Nigeria, Lagos
As a HR professional undermentioned things need to be done urgently
1. Gratuity to be continued. Some employers do the same to avoid the liability
2. New PF code/ ESI code if applicable
3.. Service conditions remain same and must be intimated to Labour authorities.
9th March 2016 From Asia/Pacific Region,
10th March 2016 From India, Chandigarh
Please check first Partner/director status in old and new company. if they are the Same then Previous company employees statutory liability can be carried forward and employees benefit remain same as per previous company policy. In this case you have to issued a new letter to every employee/ or circulate a mail to all for the same.
Recently i had done the same company merger so i can tell each and every fact points wise.
we are as a consultancy company provide advisory and other service .
you can call me on my no 9599342841.
10th March 2016 From India, Delhi
There is no mention in your post about the constitution of the existing Company and the proposed one. If the existing Company is a company registered under the Companies Act,1956, it can start or acquire another company as wholly owned subsidiary (WOS) in which case the services of the employees of the existing company can be transferred to the new one, I think.
11th March 2016 From India, Salem
Giving a clear picture of the situation..
Both the companies are registered under Company act 1956. Management don't want to show any link between both the companies..no acquisition, merger, business transfer etc.
The structure is like, 'Mr. R' runs a company called 'ABC' and has a developed a software product, now due to some (unknown) reason Mr.R wants to open a new company 'XYZ' with same management structure. XYZ will start his business with same employees' team.Every employee will be at same position which they hold in 'ABC'.
My points of concern are:
Appointment letter: with same designation and no probation period(as they are confirmed employees of ABC).
Leaves: what to do with their leave balances with ABC? can it be credited to their leave account of new company? What will be its impact on company's liabilities in accounting book ? Note: Management and some employees are not in favor of leave encashment.
PF : Old company was exempted from PF but new would be registered under PF compliance. So i think this is not problem.
Gratuity : Management is paying employees gratuity as per the calculation till date with their full & final from 'ABC'. Management is paying to every employee whether they are eligible or not to make them feel good.
Please through some light on these points and advise. also let me know what other things need to be take care of from HR's prospective.
I am sorry for this long post but I need your support.
1st April 2016 From India, Delhi
1) Appointment Letter: As suggested by you.
2) Leave: As the arrangement amounts to termination of employment by resignation in so far as ABC, the leave at credit can be encashed. Since the encashment of leave at credt is one of the items of FF Settlement, the individual preference has no room in it.
4) Gratuity: ok
1st April 2016 From India, Salem
Since the employer is ready to clear past dues salary and gratuity what to ever is due. In this case it has to be amount due against gratuity irrespective of length of service , it has to be like voluntary payment.
Leave encashment for privilege / earned leave is to be made against due till the termination of previous employment.
Other leave can be given to employees as per new leave rules.
Employment certificate of previous company can be issued to all existing employees.
New employment letter can be issued in the new company. However for the probation period clause. We need to understand the purpose of probation period. It is nothing but an evaluation period for both employer as well as of employee, I strongly believe that those who are regular and confirmed employee in previous company may be given employment as confirmed employees or without probation clause.New recruits can be taken as per rules.This will help organisation in retaining existing talent.
EPF facility is to be extended in case of new company as apprised by you.
In view of above , i believe as far as HR is concerned one should be positive enough to accept company goals under given circumstances.
2nd April 2016 From India, Chandigarh
Fresh appointment letter is needed-designation,pay,resignation/exit process etc
Previous service should be counted for working out gratuity.
Specific mention in appointment letter to indicate that previous seniority would be protected and counted in new company.
Suggest close previous chapter of leave which is accumulated and pay off employees and start afresh for employees in new company.
Off course ,willingness of employees will be needed writing along for all changes.
6th April 2016 From India, Pune