Hi, everyone. Can anyone please clarify my HR doubts as I need to process the work quickly? If possible, can you send an email to the HRs and provide me with a clarified answer, please?
My Business Scenario:
My organization is winding up on March 31st, and a new trust has come forward, i.e., new management to take over our organization. The organization's name XXXXX is changed to EKlvaya with the new management, but the employees will remain the same. According to XXXX, it is closing, but Ekalvya is starting on April 1st. The employees remain the same, but the management changes. Therefore, we, the management, have to hand over the responsibilities in a particular format to the new management. My questions are as follows:
1. What formalities need to be complied with when new management wants to take over employees without termination by the present employer?
2. What documents need to be submitted by the HR department or management to the new management?
3. How can the PF and ESI vary? Can employees withdraw the amount, or should they continue with the same number?
Please, can anyone answer this scenario and provide me with a solution?
Thank you.
From India, Hyderabad
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My Business Scenario:
My organization is winding up on March 31st, and a new trust has come forward, i.e., new management to take over our organization. The organization's name XXXXX is changed to EKlvaya with the new management, but the employees will remain the same. According to XXXX, it is closing, but Ekalvya is starting on April 1st. The employees remain the same, but the management changes. Therefore, we, the management, have to hand over the responsibilities in a particular format to the new management. My questions are as follows:
1. What formalities need to be complied with when new management wants to take over employees without termination by the present employer?
2. What documents need to be submitted by the HR department or management to the new management?
3. How can the PF and ESI vary? Can employees withdraw the amount, or should they continue with the same number?
Please, can anyone answer this scenario and provide me with a solution?
Thank you.
From India, Hyderabad
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Let me help you think more logically than before. Kindly assume that you are about to take over an organization. What kind of information do you expect to receive from the ex-management?
1. You can't wait to receive information from the date of your takeover. You need to work with the ex-management before you take over by all means.
2. You will definitely wish to receive a CHECKLIST - DEPARTMENT-WISE as it was, to understand OPERAS MORANDI and the employees involved.
3. The most important thing is to present every RECORD, especially ACCOUNTS, in order, to clarify everything.
PF & ESI are applicable as per the norms prescribed by the PF & ESI BOARD. Management can't change the value unless the SALARY STRUCTURE (break-up) is revised just to reduce OPERATIONAL COST.
Hope you can start working on "what to be prepared."
With profound regards
From India, Chennai
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2941. You can't wait to receive information from the date of your takeover. You need to work with the ex-management before you take over by all means.
2. You will definitely wish to receive a CHECKLIST - DEPARTMENT-WISE as it was, to understand OPERAS MORANDI and the employees involved.
3. The most important thing is to present every RECORD, especially ACCOUNTS, in order, to clarify everything.
PF & ESI are applicable as per the norms prescribed by the PF & ESI BOARD. Management can't change the value unless the SALARY STRUCTURE (break-up) is revised just to reduce OPERATIONAL COST.
Hope you can start working on "what to be prepared."
With profound regards
From India, Chennai
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I envy you. You are in an ideal situation that true HR dreams are made of. You have been given a godsent opportunity to really succeed and grow. So let's see what you need to do...
1. Taking over is a very delicate situation for the workers of the organization that has been taken over. So your first line of duty is to understand the doubts in the employees' mindset and address the same. You need to start communicating with the employees and assure them about their future in the new entity. This is extremely important if you want to retain your existing employees.
2. Then you need to start communicating with your new management. Understand their psyche, their plans, their culture. Make them understand your existing culture, expectations, dynamics.
3. While doing this, identify those areas that need intervention. Decide what and start the transition process.
4. Have your department heads prepare a document about their department. Something like a ready reckoner.
5. Start sharing information with the New Management.
6. Ensure all employee records are up to date and in proper files.
7. Talk to your CA/legal for advice on takeover compliance.
Always remember, takeovers fail not because of compliance but because of failure in the transition strategy and plan.
If you need help, send me a message.
Cheers and have fun!!!
Regards,
Navneet Chandra Kulshrestha - India | LinkedIn
http://in.linkedin.com/in/navneetchandra
From India, Delhi
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1. Taking over is a very delicate situation for the workers of the organization that has been taken over. So your first line of duty is to understand the doubts in the employees' mindset and address the same. You need to start communicating with the employees and assure them about their future in the new entity. This is extremely important if you want to retain your existing employees.
2. Then you need to start communicating with your new management. Understand their psyche, their plans, their culture. Make them understand your existing culture, expectations, dynamics.
3. While doing this, identify those areas that need intervention. Decide what and start the transition process.
4. Have your department heads prepare a document about their department. Something like a ready reckoner.
5. Start sharing information with the New Management.
6. Ensure all employee records are up to date and in proper files.
7. Talk to your CA/legal for advice on takeover compliance.
Always remember, takeovers fail not because of compliance but because of failure in the transition strategy and plan.
If you need help, send me a message.
Cheers and have fun!!!
Regards,
Navneet Chandra Kulshrestha - India | LinkedIn
http://in.linkedin.com/in/navneetchandra
From India, Delhi
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Is the takeover by way of transfer of undertaking? It appears that there will be a mere name change of the company, and all other aspects seem to remain the same. The employees will continue to be on the rolls of the new company with continuity. The ESI and PF numbers will also continue, but the name change in a specific format will have to be submitted to all the authorities. A letter will have to be issued by the management of the new company to the employees stating that they continue to be the employees of the new company and their continuity will not be affected.
From India, Pune
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From India, Pune
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Thank you for your replies. Yes, it is a takeover by way of the transfer of undertaking.
Questions Regarding the Takeover Process
1. Can you please tell me what specific format I have to submit to the authorities?
2. What are the statutory forms and formats to be used when a new management takes over without termination by the old management?
3. Is there any format for taking the willingness of the employees to join the new organization?
4. We have completed all the record updates, and the checklist of all the departments, employees, and policies has been explained to the management.
Could you please send me the formats?
From India, Hyderabad
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Questions Regarding the Takeover Process
1. Can you please tell me what specific format I have to submit to the authorities?
2. What are the statutory forms and formats to be used when a new management takes over without termination by the old management?
3. Is there any format for taking the willingness of the employees to join the new organization?
4. We have completed all the record updates, and the checklist of all the departments, employees, and policies has been explained to the management.
Could you please send me the formats?
From India, Hyderabad
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Exit Management and Transition Checklist.pdf