Transitioning to a Private Limited Company: Should Employees Resign or Be Terminated?

Hi All,

I am working in a partnership firm that is converting itself into a private limited company by next month. I would like to know whether I should terminate all employees or ask them to resign so that new appointment letters can be handed over to them. Please guide me. If termination is the option, what reason should be mentioned in the termination letter? If resignation is the right option, what should I ask them to write in their resignation letters?

Regards,
Preeti

You don't have to do anything. Just issue a circular stating the change of status of the company and that all terms and conditions remain unchanged. That should suffice.