Navigating HR Legalities: What Steps to Take After Acquiring Another Company?

Dear All,

My organization has taken over another organization on a long lease. In this case, what legal formalities do I need to complete with respect to HR? Do I need to apply for or renew any licenses? Can we carry forward the PF and ESIC numbers of the old organization?

Please advise me on this topic as soon as possible.

Thanks,
Shweta G

Dear Sheweta,

Greetings.

Your company has taken over another existing company which has licenses on lease. If this is the correct understanding, you can decide to merge the leased company employees into your role and add them to your company as another unit. Otherwise, you can change all records and licenses of the leased company to match your existing company.

Comparing the work involved, you can choose the first option which is easier to implement and maintain.

Cheers,
Trisha
HR Professional

Hi Trisha,

Greetings!!

The organization that we have taken over has its own license, PF, and ESIC numbers. The only thing we have done is taken that organization on lease.

In such a case, can we continue with the same PF and ESIC numbers of the previous organization, or do we have to register for the PF and ESIC again? We are continuing the employment of the previous organization.

Please advise.

Thanks & Regards,

Shweta G

Dear Sheweta,

Greetings.

You have taken the company for lease, which means it is equivalent to subcontracting, as I understand it. Hence, there is no need to worry about the statutory compliance of the leased company. You can take care of the compliance of your company and keep a check on the regular submission of content and returns of the leased company.

Cheers.

With regards,
Trisha
HR Professional