Transfer of employees from one company to another company - CiteHR
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We are having the same issue as of Parvati Hoogar.
Our company is a partnership company... We are moving our partnership company into other firm which is a private limited company. In partnership company we have 7 employees, who needs to be transferred to private limited company.
I would like to know to the procedure to be followed for transferring these 7 employees to private limited company.
What kind of documentation or letters we need to provide for employees ?
In case any employee still serving under 3 year service agreement with active bond. Do we need to prepare new service agreement in the private limited company name ? And what would be the process of gratuity deduction?
What would be his/her service period should be considered in service agreement under service bond ?
Kindly suggest the procedure. This is on a urgent basis.
Thank you
Vinuthna Y
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Dear Vinuthna,
Simply put this is a transfer of undertaking. Irrespective of the no. of employees in the transferor undertaking, As per the provisions of sec.25-FF of the Industrial Disputes Act,1947, every employee who has been in continuous service not less than one year in that undertaking is entitled to retrenchment compensation. However, this is not applicable when the services of such workmen has not been interrupted by such transfer, the terms and conditions of service are not less favourable in the post-transfer and the new employer is liable to pay compensation in case of retrenchment later.
You can mention all these three conditions in a letter individually addressed to all such employees jointly signed by the authorized signatories of both the undertakings.
This is equally applicable to the FTC employees still in service.
As successor-in-interest, the transferee undertaking is automatically liable to pay for terminal benefits like gratuity later including for the services rendered in the transferor undertaking.
Greetings Umakanthan sir,
Thank you so much for the reply.
Regards
Vinuthna
Hi,
And also i would be thankful to you if you can kindly clarify me if we have to redo the bond for employees in the name of our new pvt ltd company.
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