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We are a Pvt. ltd. co. say A Ltd We have some workers whom we want to transfer. The standing orders, as well as the appointment letter, state that the worker can be transferred to any sister/associate company in India.
The co. where we want to transfer workers says B. Ltd is a subsidiary of the parent company of A Ltd. However, A Ltd. does not have any share in B Ltd. B Ltd. was acquired by the parent company of A Ltd. last month, i.e. after terms of appointment and standing orders were announced.
My questions are:
1. Can we transfer the worker to B Ltd. being a 'sister' concern of A Ltd
2. Does B Ltd. have any legal association with A Ltd. so as to fit in the clause "can be transferred to any sister/associate company"
3. Does the fact that B Ltd came into existence only recently have any effect since standing orders/appointments are prior in time?

From India, Patiala

You have ansered your query in your Question itself.Pls be informed that the provisions of the Standing Orders will be interpreted to the advantage of the workmen.In this case that the Sister Co came into existence later than the Standing Orders.
Pls dont get into a Legaltangle.Pls negotiate with the workmen and get their agreement for transfer.
With Regards
V.Sounder Rajan

From India, Madras
Thanks for your response.
My queryis that acompany is a going concern, so why should limitation be placed on it for establishing a new company. At this time it becomes even more imp. to have experienced workers to start a new concern?
Do you have any case law on this?
Thank you

From India, Patiala

Dear Sir,
With regard to the query raised by our fellow member, you have stated that since the Co. B came in to existence (acquired) after issuance of Standing orders, it may land them in legal tangle if they transfer the employees to Co 'B'.
I have a clarification:
If at the time of issuance of standing order or appointment letter,
A sub clause is added stating that the employee(s) may be tranferred to companies acquired on a later date by the parent company will it be binding on the employees to accept it or even then can it be challenged in court of law.
Thanks & Regards,
J. Subramanian

From India, Madras
Is it possible to get any case law on this subject as to transfer of worker to NEW COMPANY created after appointment of employee? Standing order only states that worker can be transferred to any establishment of the company.
From India, Patiala
bhupenrder soni
in this case, legal ground is very clear, if parent company is the same of the subsidiary company or the Managment is same, then transfer is very easy from one unit to another unit or company (subsidiary).


From India, Pune
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