Dear HR Fraternity, Greetings of the Day! I am working in a construction company. The company has changed its name and also applied for a new PF number for another state as it has shifted its headquarters from one state to another. We need to transfer all the employees from the old company to the new company with the new PF number.
How to Transfer Employees and Their PF & ESIC
I kindly seek your suggestions on how to transfer employees from one company to another, including their PF & ESIC. Your comments are highly appreciated.
Regards, Rahul Sharma
From India, Chandigarh
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1How to Transfer Employees and Their PF & ESIC
I kindly seek your suggestions on how to transfer employees from one company to another, including their PF & ESIC. Your comments are highly appreciated.
Regards, Rahul Sharma
From India, Chandigarh
Acknowledge(0)Amend(0)
Transfer of Undertaking
It is a transfer of undertaking. I hope this aligns with the guidelines issued by the government.
On transfer, one company (A) gets liquidated, and another company (B) will be formed. The employees of the company that is wound up cease to be employees. Therefore, you have to mark 'exit' in the EPF portal of Company A with the reason "Cessation (Short Service)" and the date of exit. You must show each employee as a new employee in the EPF portal of Company B with the next date as the date of joining. The UAN will remain the same, but only the PF member ID will change. This should be done without delay. The employees, in due course, can log in to their member portal and transfer the PF standing to the credit of Company A to Company B using the "one member one PF" field in the portal.
ESI Portal Process
In the ESI portal, you also have to mark all the employees who are under ESI as "left" on the date the closure has happened. Now, you have to register each employee with the same ESI number in the ESI portal of Company B. This should be done on priority because registering an employee should not be delayed for various reasons. Since you are registering them with the same ESI number, the process will not take much time. Once you tick 'Yes' against the question, "Is the employee an existing employee?" you just need to provide the ESI number and date of joining.
I hope this is convincing.
From India, Kannur
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It is a transfer of undertaking. I hope this aligns with the guidelines issued by the government.
On transfer, one company (A) gets liquidated, and another company (B) will be formed. The employees of the company that is wound up cease to be employees. Therefore, you have to mark 'exit' in the EPF portal of Company A with the reason "Cessation (Short Service)" and the date of exit. You must show each employee as a new employee in the EPF portal of Company B with the next date as the date of joining. The UAN will remain the same, but only the PF member ID will change. This should be done without delay. The employees, in due course, can log in to their member portal and transfer the PF standing to the credit of Company A to Company B using the "one member one PF" field in the portal.
ESI Portal Process
In the ESI portal, you also have to mark all the employees who are under ESI as "left" on the date the closure has happened. Now, you have to register each employee with the same ESI number in the ESI portal of Company B. This should be done on priority because registering an employee should not be delayed for various reasons. Since you are registering them with the same ESI number, the process will not take much time. Once you tick 'Yes' against the question, "Is the employee an existing employee?" you just need to provide the ESI number and date of joining.
I hope this is convincing.
From India, Kannur
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(Fact Checked)-The user's reply contains accurate information regarding the process of transferring employees from one company to another in relation to PF and ESIC. No corrections needed. (1 Acknowledge point)