There are two Firms owned by the same Employer. One is a consulting firm & Other one is Training & Certification Institute.
If an employee is working for the parent firm as a consultant since many years & if the employer need the same employee to be part of the sister firm for the position of Trainer what documents should be provided by the employer to that employee?
A separate Offer Letter that should include the CTC Breakup? Should the Employer deposit salary by respective companies Bank Account?
Need help on the legal documentation checklist.
20th October 2018 From India, Bengaluru
What are your intentions you wants to check out of this queries? What are the things you want to find out of the information?
20th October 2018 From India, Pune
Sir it is just a Deputation as per ur words. If. U want to send him out to ur another company give him all formalities as a person of retirement and issue formalities of Appointment in the new company.
He will loose seniority in the past company and fresher to new company.
Every thing depends on trickish idea behind this proposal. The parent company don't want to keep service of the Gentleman. So it got idea for new separate A.O etc.
GENERALLY WHAT WILL U DO FOR SENDING AN EMPLOYEE TO TO WORK sometime in a company in foreign country. A deputation order keeping that employee to be their company sponsoring work and to send on contract basis.
Issue deputation order .and follow as usual procedure.pls
20th October 2018 From India, Nellore
Dear Vivek,
Every firm, irrespective of its ownership, is a separate legal entity. Therefore, the usage of nomenclature like group company,parent company or sister concern is colloquial only and no legal validity.
Inter-company/firm transfer of employees would valid only in the case of explicit agreement between the firms and the willingness of the employees concerned.
Therefore, if the employee willing, obtain his resignation from the Consulting Firm and pay him all the terminal benefits for the service he rendered so far and appoint him afresh in the Training and Certification Institute as a Trainer. That would protect the interests of the employee and the firms concerned as well.
21st October 2018 From India, Salem
Dear Vivek,
If the appointment letter of the concerned employee contains clause that his services are transferrable to any of the sister companies, then you only have to issue transfer letter with either existing service conditions or revised conditions.
In such a transfer, continuity of service is granted and no reduction in salary or benefits be resorted to. New job description, job title and revised terms should be clearly laid down.
In case no such transfer clause, obtain his resignation and make full and final settlement after which fresh appointment letter on terms mutually agreed, may be issued on rolls of the sister company.
Regards,
Vinayak Nagarkar
HR- Consultant
21st October 2018 From India, Mumbai
Dear all,
I am extremely grateful for your time. I also have some additional clarifications. Both the companies are keeping the employment status active. That is Mr. X is the Employee of both the entities.
The Director is not depositing salary through bank in either cases. He is playing a safe game in terms of evading IT & TDS that has to be filed. The employee strength of both the companies are less than 10.
Payslips are sent via mail & no reflection in Bank.
Salary of 48000 per month.
From Employees prospective what could be the possible actions that can be taken?
Please help.
Regards
Vivek
26th October 2018 From India, Bengaluru
Dear Vivek,
It is not known whether you are an independent HR Consultant or a paid employee of the twin organizations mentioned. Similarly, we are also not aware of the fact that whether it is your mere academic thirst just to know or professional interest to protect someone prompts these queries.
Whatever it be; the first point is that this is a case of dual employment or double employment though the two organizations are owned by the same person and it is done at his behest. Except for section 60 of the Factories Act and some of the State Shops and Establishment Acts it is neither prohibited nor considered as illegal unless anyone of the two employers take objection to it. The Income Tax Law's concern would be levy of tax on both the sources of income only. As such,the question of illegality,if any, arises only from the point of income tax evasion alone.
The second and the most important point is whether this is whole-heartedly accepted by the employee. Normally such dual employment under the same employer or elsewhere would reduce the individual's efficiency in both the jobs for one cannot ride on two horses simultaneously and can create a high degree of work-life imbalance.
The third point is that that it tantamounts to deprivation of another person's employment.
If the person is yourself, it is only for you to decide.
26th October 2018 From India, Salem
Dear Sir,
It is my situation now. Why an employee is always a Victim of these situations. I am clueless & need advise or legal help since it is my career at stake.
Regards
Vivek
24th May 2019 From India, Bengaluru
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