Human Resource And Industrial Relations
Consultancy_hr & Ir
Hr Consultant

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hi all
We are having two companies where first company is having employees those who all working as a Driver , Gardener , Office Boyes etc. & second company is having all above these grade.
now we want to close that first company but same time we don't want these people ( Driver ect.) to be on our second company payroll.
what can be the best solution ??

Why couldn't Company B merely close Company A and release all the employees (with severance, of course)?
Unless there is a collective bargaining agreement (Union contract) which prohibits such a move, or dictates that employees of Company A should be incorporated into Company B according to Seniority, or skill, or both, Management has the right to operate the business as they see fit, within legal boundaries.

From United States,
Dear Shreeram,
It is simple, just contact any of the outsourcing agencies like Mafoi, Genius or others and shift them under their roll. Every agency has this provision now.
It is really simple unless you have any Union or Labour Disputes.

From India, Thane
What is the strength of "workmen" (under Industrial Disputes Act)?
If below 100 (in Maharashtra), simply close down one unit by following procedures detailed in Chapter V-A of the Industrial Disputes Act and be done with it!
Whatever services that may go away due to closure (but you need them for the remainder company) can be obtained through Contractor (if necessary following the provisions of the Contract Labour (Regulation and Abolition) Act.
And this you can do even if you have a union.
It may be a delicate "human" problem that you are facing but certainly not a difficulty legal problem!
August 4, 2006

From India, Pune
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