How Do You Navigate Employee Transfers Within the Same Organization Seamlessly?

What is the process for transferring employees of the same company to another company?

The process of transferring employees from one company to another within the same organization involves several steps. Firstly, the employee interested in the transfer should discuss their intentions with their current manager. This conversation is crucial as it can help determine the feasibility of the transfer and assess the employee's suitability for the new role.

Once the employee's current manager approves the transfer, HR typically gets involved to coordinate the transition. HR will review the employee's performance, skills, and experience to ensure they meet the requirements of the new position. They will also handle the logistical aspects of the transfer, such as updating employment contracts and benefits information.

After the HR approval, the employee will work with their new manager to finalize the details of the transfer, including start dates, job responsibilities, and any necessary training or orientation. Clear communication between all parties involved is essential to ensure a smooth and successful transfer process.

Overall, transferring employees within the same company to another company requires collaboration between the employee, current manager, HR, and the new manager to facilitate a seamless transition.

Employee Transfer Between Different Companies

You cannot transfer an employee from one company to another as both are different entities. However, you can "second" the services. It is important to mention service conditions if they are different. In such cases, the employee will be ensured continuity of service for gratuity purposes.

Some companies ask employees to resign and pay off gratuity even if the employee has not completed 5 years of service, then take them on the payroll of a new company. However, in such cases, the employee stands to lose as they will have to complete another 5 years of service in the new company to be able to claim gratuity. I hope you understand what I am saying.

Employee Transfer Process During Company Buyout

When the services of employees are taken over by another company, they must resign from the current company and join the new company afresh. After this process is completed, the new company provides a written assurance guaranteeing the continuity of benefits such as gratuity, promotions, etc. Their leave balances and other benefits must also be transferred to ensure they can continue to enjoy these benefits. It is important to ensure that the net salary is not less than what they currently receive.

By following these steps, employees can be assured that they are not losing out on any benefits due to a buyout or carveout.

Regards,

If you have a gratuity trust, the gratuity is transferable within the group companies; hence, there is no loss to the employee who resigns from one group company and joins another at the behest of the management.

Warm Regards,

Bharat Gera
HR Consultant

Transferring Employees from a Partnership Company to a Private Limited Company

One of the companies is a partnership company. We are merging the partnership company into a sister firm, which is a private limited company. In the partnership company, we have 4 employees who need to be transferred to the sister private limited company.

Procedure for Transferring Employees

I would like to know the procedure to be followed for transferring these 4 employees to the sister private limited company. What kind of documentation or letters do we need to provide for the employees?

Handling Service Agreements with Active Bonds

In case any employee is still serving under a 1-year service agreement with an active bond, do we need to prepare a new service agreement in the sister private limited company's name? If yes to the above query, what would be his/her service period considered in the service agreement under the service bond?