How Do I Add a Transfer Clause to My Offer Letter in a New Job Situation?

Hi all, I need your help. I have joined a new company, and there is no "transfer" clause in the offer letter. The company is in the midst of transferring the staff to another entity, the same company but with a different registration name. Does anyone have any idea how to draft the "transfer clause" into the offer letter?

Thank you.

You may insert the clause as below and modify it to suit your requirements.

"Transfer Clause"

"Your initial posting will be with xxxxxxxxxxxxxxx (Co.) & xxxxxxxxxxxxxx (Location). However, during employment with the Company, you may be posted/transferred to any of the Offices/Divisions/Departments/Associated Units of the Company existing or to be set up at any other location, without any additional remuneration."

Regards,
Pon

Please find the below clause, modify as per your requirement.

Transfer Clause

Your initial place of posting is Bangalore. However, depending upon the requirements of the company's business, the company can transfer you to any other location.

Regards,
Shalini

"Your services are liable to be transferred to and at any other Unit/Offices/Group companies/Sister Concern/Subsidiary/Associate Company/Joint Venture, at any location in India/Abroad at the sole discretion of the management."

Regards,
Hiral

Most of the members have contributed their views. I would like to add only one thing: the transfer clause is not mentioned in the offer letter, but it is included in the appointment letter. Seniors, please clarify if I am wrong.

Thank you very much for your immediate response. One clarification: an Offer Letter is a Job Offer letter. In that letter, why does the entire clause/policy of the company have to be mentioned before a candidate joins the company?

Please remember, it is NOT mandatory but OPTIONAL to mention. No one can stop you from doing so. At times, it serves as a boon if the company wants to post the employee directly at a different location from the beginning, which is otherwise not mentioned at the time of the final interview or probably a different location is cited. The employee will have the feeling that the policies are TRANSPARENT.

You are right in your approach to add the transferability clause in the letter of appointment. Without the express consent of the employee, they cannot be transferred from the location of their initial appointment to any other location. I agree with the clauses proposed by the friends above.

Regards,
S.K. Johri

If you did not include the Transfer Clause in your Offer Letter to your employees, did you have the clause in your Employee Handbook, of which a copy should be given to the employee and the acknowledgment slip returned to HR?

Bear in mind that if you transfer your employees to a separate entity, you will have to take note of the employees' length of service, whether their service is continuous or starts afresh in the new company, and also the benefits that they are currently enjoying. If their services are truncated, and they join the new company as new joiners, you may have to look at compensation as well.

Understanding Transfer Clauses in Appointment Letters

If the 'Appointment Letter' mentions that your services shall be governed or regulated by the HR Policies of the company, and if the HR Policies cover the 'Transfer' aspect, there is nothing wrong in transferring an employee to another unit of the company on a job with the same profile. This keeps in view the employee development aspect since 70% of employee development is through job rotations (transfer being the mode) and 30% is through formal training.

Remember, a business organization has to manage its manpower resources optimally to avoid being in the red. If a transfer upsets an employee, he always has the option to quit. Everything need not be stated in an Offer or Appointment letter.