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I am working as an HR Manager in Pvt. Ltd. Company.
I have to know that as per the responsibility of HR activities,
Does the HR department have to do any legal procedure in advance when two companies decide to merge?

From India, Raikot

Certainly; in this connection, you should refer to the provisions of Sec.25-FF of the ID Act,1947 which deal with the procedures of compensation to workmen in case of transfer of undertaking. Apart from gratuity being a service condition applicable to all employees alike, it is also equally important to decide the no of managerial cadre employees to be retained and the terms and conditions of their employment after merger.
Therefore, the HR people have a pro-active role when two companies are slated for a merger.

From India, Salem

When two companies merge, the provisions of the Companies Act 2013 would apply. Besides that, in case you are registered as a factory as per the Factories Act 1948, the provisions on change of management would apply and you need to nominate the Factory Occupier and Factory Manager as well as get amended the factory license. In case you are a shop/establishment as per the Shop & Establishment Act you have to inform the authorities concerned of the changes in composition. Additionally an immediate task is to identify the positions that will become redundant, the plan to utilise them or to jettison them have to be prepared. Most importantly, the task of HR is to prepare both the organisation for the merger, employees will have fears, apprehensions and more importantly misgivings. It is necessary to communicate clearly and forthrightly the process of change and reassure the talents of continued care and support.
From India, Mumbai

The post has little got information.

Here, X & Y companies are in process of merger, this can be either one of the two company would extinct or both the companies extinct and would start business afresh in name of Z Co. Your company is the right person to tell you what exactly is going to happen.

The course of action has to be decided accordingly:
1. The provisions of ID Act would come into play as per the case best suits for the purpose.
2. Issue fresh appointment letter to employee by settling their compensation arising out of proposed merger/closure of one or both units.
3. May required to sign the memorandum of understanding with the employees affected by process of the merger.
4. To obtain new registration for new if the both the establishment is closed permanently for a new one.
5. To obtain new licence for the factory as per the Factories Act 1948 and change of Occupier and Factory Manager.
6. To notify the authority PF, ESI, Labour & Factory for closure and change of management as the case may be.
7. Maintenance new record & registers
8. Issue of Form VI & V to contractor for close of previous and to obtain new licence.
9. All other activities as per the guidelines of the consultant appointed for the proposed merger.

From India, Mumbai
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