Navigating Appointment Letters: Legal Insights on Transitioning from Indian to Foreign Company Payroll

Dear Sir, I need to discuss a case with you regarding an appointment letter. There is a person who joined a foreign company that does not have an existence in India. Therefore, he is on the payroll of an Indian company owned by his Indian boss. He has been given an appointment/confirmation letter with the name of the Indian company. Now, the foreign company is set to establish its presence in India in the month of July.

Question on Appointment Letter Format

My question is, can he be provided with an appointment letter in the following format: 'Mr._________ is appointed as ________ in ____________(Foreign company's name) which was formerly known as _____________(Indian Company's name)'? What does the law say?

Please advise on the legality of this situation.

Thank you.

No, the scenario is not too complicated. 

Solution to the Appointment Letter Issue

I have a query for you. Is this just a name change of the company? Or are they two different establishments? If it's only a name change, then yes, you can provide an appointment letter stating the same as you have mentioned.

If it is not just a name change of the firm, then you have to ask him to resign from the Indian company and issue a fresh appointment letter from the foreign company. Hope it will be of help.

Regards,

Won't this affect the person's resume? If in the future, he looks for a change and applies for a job, chances are his resume will not be shortlisted on the following grounds: why he has changed jobs (job hopper). During the screening of resumes, how many HR professionals check these valid points?

Alternative Solutions

Is it not possible that instead of resignation, a new appointment letter is issued to him mentioning company transfer? If interdepartmental transfer is possible, can't this be followed too?

No, he won't be called a job hopper as this information can be mentioned in the relieving letter that both the companies belong to the same person or group. When Ranbaxy sold one of the subsidiaries to the parent company in Germany, a similar practice was followed, and they did mention everything in the experience or relieving letter. So don't worry, it won't have a negative impact on your CV.

Thank you so very much, Ms. Archana. I will suggest the same to the organization. However, I need to know if it can be mentioned in the appointment letter that the company was formerly known by the name of "_________________".

I am getting the appointment as Branch Manager for working in the branch office of a European company in India. Can anybody provide me with a draft Appointment Letter/Agreement which I should accept in view of the regulations of the two countries? Which is the safer drafting for me? I am worried if anything goes wrong with me later and I cannot protect myself.

Regards,
Janak