Facing a Company Move: How Will It Affect Our Careers and What Documents Should We Request?

Hello, I am working in an IT firm. They are closing that company and moving all the employees to a new fresh company. They are asking employees to resign and join the new company. I am concerned about how this will impact our careers and what documents we should ask them to provide.

If you are moving to another company after submitting your resignation, as advised by your employer, then you will lose your service continuity. Please request a continuity of service letter from your employer, which will be beneficial for you at the time of exit when applying for Gratuity (provided you have completed a service period of 4.8 years or more across both companies). Otherwise, your employer may reject your Gratuity application citing insufficient service.

If you are going to fall under a new PF number scheme based on your years of service, you may lose pension eligibility. Upon completing 9.6 years of service, you become eligible for a Pension that will be paid out after you turn 58. Therefore, even if your employer assigns a new PF number, request a transfer from the old PF number to the new PF number.

Thank you.