Vmlakshminarayanan
Sr.manager - Hr&admin
+1 Other

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Hello, The company i am currently working in was on proprietorship until last month. We have now become a private ltd. company, the company name & management is the same. How our employee engaged with our new company without discontinuing their previous service?
pls suggest.

Hi Deb Kumar,
If they have been already issued appointment order under proprietorship Company then they may be issued with a Transfer letter indicating their change to new Company. You may add a word stating that for the purpose of Gratuity calculation their old DOJ will be considered. So while paying Gratuity for eligible employee you need to consider their old DOJ.

Mostly when the Proprietorship company becomes a limited company, there would be clause in memorandum of understanding, regarding the continuity of service of employees transfer to limited company. The new limited company should also issue a letter to all employees regarding the continuity of service.
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