Regarding Industry transfer from Partnership firm to Private Limited company

Dear Sir,

We have small scale industry in Ambad, Nashik in partnership firm. We will be switch from partnership firm to private limited company from 1st April 2024. My question is any special rules and regulation related labor, Leave management, manpower strength required, any labor facility required, PF & ESIC online documentation for transfer process our employees. pls guide me.

Altaf Sayyed
HRD

The change from a partnership firm to a private limited company is a very significant one though there is continuity in operation. So all statutory/government authorities related to your operations have to be informed.

This would be deemed as transfer of undertaking for all the labour related purposes. Therefore, there should be understanding among the employees, employers of partnership and the directors of the company regarding treatment of their past service for future calculation of gratuity etc. On forming a Company a new ESI and PF number would be generated. You have to transfer the employees from the existing RC to the new RC. This will ensure continuity for the benefits under the respective Acts. Naturally, the ESI and UAN would not change.