Transitioning Employees Between Companies: Is It a Transfer or New Hire Process?

My current lot of employees are under the payrolls of 'Leadsmaaza Online Services LLP' and I have to bring them to Dreambig IT rolls. Both firms are independent entities with the same ownership. My boss doesn't want to group these companies either as the liabilities will scale. In such a situation, do I release new appointment letters to them? Will it be considered as a transfer?

Will this be a 'Transfer' of employees or a re-employment?

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This text seems to be mostly correct in terms of spelling and grammar. However, I would suggest a slight modification for better clarity:

Will this be a 'transfer' of employees or a re-employment?

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This adjustment ensures consistency in the use of quotation marks and maintains the original intent of the sentence.

Please, I need an expert opinion on how exactly this can be done and how. Please be precise, as all I know is I am a good recruiter and totally lame in core HR. This is the first and foremost challenge in my current profile.

When the entities are separate and independent, the commonality of their ownership doesn't matter in effecting changes in the service of the employees therein, except for the quick approval of any decision in this regard.

Clarifications needed for employee transfer

However, firstly, certain clarifications are required from the poster if the change intended is limited to that of transfer of services only: Whether only those employees of Lead Mazza currently deputed to serve in Dreambig are to be transferred to the rolls of the latter or all of the former? Whether it is possible to effect such a transfer with continuity of service and attendant benefits to the employees bilaterally between both the entities, or do the employees concerned have to be consulted either individually or collectively through their Union, if any?

Dear Mr. Umakanthan,

Yes, the employees have been consulted individually, and they are very much willing to have their employment transferred to the new entity. We would like to adhere to the compliances and proceed methodically. We have obtained the employees' consent. Now, how do we proceed further?

Much Thanks

When employees express a willingness for a one-time inter-unit transfer of their services between two entities of the same employer, termination of their services by the employer is not advisable in my opinion, considering the additional liability of paying retrenchment compensation. On the contrary, two lawful options are available to facilitate the transfer smoothly both now and in the future:

a) After obtaining resignations from the employees in the first company and settling their Full and Final (F&F) dues, the second company may appoint them as freshers in similar or equivalent positions upon submission of formal applications without any selection or screening process. This constitutes a new appointment without the continuity of service from the first company but in recognition of the same.

OR

b) Both companies may enter into an agreement outlining a one-time permanent transfer of willing employees from the first company to the second, under the same conditions of service with continuity of employment. Letters of willingness should be obtained from individual employees.

Thank you.

If not termination from our end, can we ask them to resign from the former employer and then issue a new offer from the latter one.