Dear Seniors,
I need your help with a transfer query. One of the XYZ US companies has acquired 51% of our stakes (Company A) and also the stakes of another company in Mumbai (Company B). They now wish to transfer some of the staff from Company A to Company B, where the XYZ company holds a 50% stake.
Should this be treated as an internal transfer requiring the issuance of a transfer letter, or would it entail resigning from Company A and joining Company B as a new employee?
Your prompt response would be greatly appreciated.
From India, Pune
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6I need your help with a transfer query. One of the XYZ US companies has acquired 51% of our stakes (Company A) and also the stakes of another company in Mumbai (Company B). They now wish to transfer some of the staff from Company A to Company B, where the XYZ company holds a 50% stake.
Should this be treated as an internal transfer requiring the issuance of a transfer letter, or would it entail resigning from Company A and joining Company B as a new employee?
Your prompt response would be greatly appreciated.
From India, Pune
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Hi,
If the group is the same and both companies are considered belonging to the same group (i.e., group companies), then a transfer is possible. If the other company has a different name and is not a group company or sister concern, in such a case, internal transfer is not possible.
Hope I am on the right track.
Regards,
Rajeev Dixit
From India, Bangalore
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If the group is the same and both companies are considered belonging to the same group (i.e., group companies), then a transfer is possible. If the other company has a different name and is not a group company or sister concern, in such a case, internal transfer is not possible.
Hope I am on the right track.
Regards,
Rajeev Dixit
From India, Bangalore
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Hi,
Agreeing with Mr. Rajeev's suggestion, there are some tricky problems when transferring people from one group company to another in terms of Statutory payments like PF Transfer and Gratuity.
Consider a scenario where an employee has recently joined and is contributing to PF. In some cases, we can ask them to withdraw their PF from the previous group company or transfer it to the new company. Please prepare a list of people who have completed less than 6 months in the company because they will only have to transfer the PF and not withdraw it.
Similarly, in the case of Gratuity, we need to transfer the gratuity from the existing company to the new company and ensure the proper transfer of the amount by keeping all necessary statutory authorities informed.
A letter of transfer regarding this matter should be sent to the employees, mentioning the reasons for Inter-Company Transfer briefly, and the same should be filed in their personal files for record.
From India, Hyderabad
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Agreeing with Mr. Rajeev's suggestion, there are some tricky problems when transferring people from one group company to another in terms of Statutory payments like PF Transfer and Gratuity.
Consider a scenario where an employee has recently joined and is contributing to PF. In some cases, we can ask them to withdraw their PF from the previous group company or transfer it to the new company. Please prepare a list of people who have completed less than 6 months in the company because they will only have to transfer the PF and not withdraw it.
Similarly, in the case of Gratuity, we need to transfer the gratuity from the existing company to the new company and ensure the proper transfer of the amount by keeping all necessary statutory authorities informed.
A letter of transfer regarding this matter should be sent to the employees, mentioning the reasons for Inter-Company Transfer briefly, and the same should be filed in their personal files for record.
From India, Hyderabad
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HR-Policy-036 - Employee Transfer Policy - 11-10-2013.pdf
Steps to transfer PF amount.jpg