Can My Company Transfer Me Without Consent and Deny My Original Experience Letter?

Hi,

I am working as a senior manager in a CMMI level company. When I joined the company, I was initially on the main company payroll, and my joining letter is also from the same company. Later, they had a new venture and seconded me to work in that company. All my appraisals and formal company communications are conducted on the parent company letterhead.

After 4 years, I have submitted my resignation with the proper notice period served. The company is now requesting that I obtain my experience and relieving letters on the new company letterhead, stating that they have internally transferred me to the new company. However, this was done without informing me or obtaining my consent.

I would like to inquire about:
1) My legal rights regarding whether a company can transfer an employee to a new company without their consent and without obtaining a formal resignation from the main company before joining the subsidiary company.
2) Whether a company can refuse to provide me with an experience letter from the company to which I originally joined as per my joining letter.
3) What legal actions I can take against the company.

Regards

Dear Madhulika,

When a company transfers its business or merges with another group or is taken over by a venture, it should also inform its employees through written communication. The company does not need to obtain resignations from any employees. If a company transfers its business to another group, the same should be communicated to all employees along with the terms and conditions.

The company can publicly announce the business transfer. During the announcement, employees may raise objections, but they cannot take any legal steps.

Vishwash Thakur

Thank you, Viswash,

In that case, the company should have intimated me with the transfer order, but in this instance, it was not communicated, and no consent has been obtained from the employees. I have only just discovered this fact as I am about to leave, that I am on the payroll of another company.

So, is that justified?

Dear Madhulika,

Do you receive a payslip? What is the company name on it? Is it the parent company or the new company? If your payslip is from the old company, you can ask for a relieving letter and an experience letter from the parent company.

Best regards,
Meenal

Hi Madhulika,

There should have been a formal communication given to you by the parent company, if not a resignation letter, but a transfer letter that I am talking about. If both companies are a single entity, the letterheads cannot be different. The company cannot deny you a relieving letter. As long as your full experience/tenure is stated in the relieving letter, there should not be a problem. However, you can fight back by stating why there was no formal communication given to you about the transfer.

Regards,

Yes, I agree with Ms. Meenal. However, the management should intimate the transfer to the concerned in writing. Since if one joined a joint venture company having a brand name worldwide but transferred to a small business firm started by one of the partners, how can they continue the service?

Regards,
bsk

Madhulika

1) My legal rights: Can a company transfer an employee to a new company without their consent and without taking formal resignation from the main company before joining the subsidiary company?

Please review your appointment letter for any clauses related to transfers. Additionally, check the current rules of the parent company to see if there is a transfer policy in place. The company has the right to transfer employees within the same organization. Verify if you were on deputation or sent on lien to the new venture or new company. The terms regarding this as per company rules should have been clearly communicated to you, and consent should have been obtained if the new company was entirely separate. It depends on the company's policy.

2) Can a company refuse to provide me with my experience certificate for the company I initially joined as per my joining letter?

No, they should not deny you the experience certificate. Even if they issue the certificate on a new letterhead, it should mention that you also worked for a certain number of years in the original company from ___ to ___, as ____.

3) What kind of legal action can I take against the company?

Avoid litigation for the experience certificate. Since you have already worked in the new venture for several years, it will be assumed that you accepted all the terms and conditions when transferred to the new company.

Rajiv Ranjan