Hi, My Company is in under incorpration, can i issue the Appointment Lettars for my emplyees? My CS done these works :- i) DIN Registration ii) Compnay Registration
From India, Shimla
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1From India, Shimla
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Issuing appointment letters to all employees is mandatory as per law. The appointment letter should be issued to the employee on the date of their joining. All employment terms and conditions shall be affixed with the letter of appointment. It's also recommended for HR to brief the content of the 'letter of appointment' while issuing it.
Warm regards,
Umesh Chaudhary
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From India, Delhi
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Warm regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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I appreciate the comment of Mr. Umesh Choudhary and would like to add the following points:
- The person who signs the appointment order should be the authorized signatory.
- You have not mentioned your status/designation.
- However, obtaining approvals on the existing manpower from the Chairman and preparing a proper appointment order would be beneficial for both parties (employee and employer).
Regards,
S. Rao
Hyderabad
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From India, Hyderabad
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- The person who signs the appointment order should be the authorized signatory.
- You have not mentioned your status/designation.
- However, obtaining approvals on the existing manpower from the Chairman and preparing a proper appointment order would be beneficial for both parties (employee and employer).
Regards,
S. Rao
Hyderabad
[Phone Number Removed For Privacy Reasons]
From India, Hyderabad
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It appears that your company is yet to be incorporated and is in the process of incorporation. This means it has not yet come into existence legally. How can you issue appointment letters under its seal and stamp?
Regards,
B. Saikumar
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
Mumbai
From India, Mumbai
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I second the views of Mr. Saikumar. It would be wise if you could make some stop-gap arrangements for the individuals you need to hire, essentially until your company gets registered.
Regards,
Shailesh Parikh
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Vadodara, Gujarat
From India, Mumbai
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Regards,
Shailesh Parikh
[Phone Number Removed For Privacy Reasons]
Vadodara, Gujarat
From India, Mumbai
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Your statements are contradictory. You said your company is under incorporation. You also mentioned that your CS did the work of registration of the company. Additionally, you became a member of this forum under your company's name as Pvt. Ltd.
If your company is registered as a Pvt. Ltd. company, the incorporation certificate must have been issued to you. Therefore, you are officially and legally able to transact any business in your company's name, including appointing employees and issuing appointment letters to them.
If your company is not yet registered as a Pvt. Ltd. company, you need to have a stopgap arrangement as suggested by Sai Kumar ji and Shailesh ji. You need staff or experts to do some preparatory jobs before you start your business. Such staff or experts can be hired as professionals, and professional fees can be paid to them after incorporation.
Regards.
From India, Mumbai
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If your company is registered as a Pvt. Ltd. company, the incorporation certificate must have been issued to you. Therefore, you are officially and legally able to transact any business in your company's name, including appointing employees and issuing appointment letters to them.
If your company is not yet registered as a Pvt. Ltd. company, you need to have a stopgap arrangement as suggested by Sai Kumar ji and Shailesh ji. You need staff or experts to do some preparatory jobs before you start your business. Such staff or experts can be hired as professionals, and professional fees can be paid to them after incorporation.
Regards.
From India, Mumbai
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Just a quick addition: whether the company has been registered or is yet to be registered under the Registrar of Companies (ROC), if the organization has employed even a single employee, the appointment letter needs to be issued. The appointment letter is an agreement between the employee and the employer; therefore, it has no relevance whatsoever with the company's registration, office premises allotment, trade certificate, sales tax registration, EPF, or ESIC code allotment, etc.
Warm regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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Warm regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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Mr. Keshav Korgaonkar rightly raised certain pertinent questions for clarification. If the company is to be incorporated and you need to engage someone to do various jobs relating to incorporation, etc., you can, as Keshavji suggested, engage them as independent professionals and consultants and pay them the professional fees.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Hello All, Comoany name is registred (LLPIN/CIN/1A Ref No B72406226), according to my CS some works are remaining. Reagrds Tarsem Singh
From India, Shimla
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From India, Shimla
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No law prescribes that appointment order should be issued.But it is indirectly implied to have it due to many other implications under labour laws. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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I am sharing with you what Section 34 states in the Delhi Shops and Commercial Establishments Act:
Employer to Furnish Letters of Appointment to Employees
The employer shall furnish every employee with a letter of appointment. Such letters of appointment shall contain the following and such other particulars as may be prescribed, namely:
- The name of the employer,
- The name, if any, and the postal address of the establishment,
- The name, father's name, and the age of the employee,
- The hours of work,
- Date of appointment.
Similar provisions are mentioned in other states' Shops and Commercial Establishments Acts. Though I don't have a copy of the Indian Factories Act, 1948, I am sure the same would be written there, probably with some other terms or nomenclature.
Regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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Employer to Furnish Letters of Appointment to Employees
The employer shall furnish every employee with a letter of appointment. Such letters of appointment shall contain the following and such other particulars as may be prescribed, namely:
- The name of the employer,
- The name, if any, and the postal address of the establishment,
- The name, father's name, and the age of the employee,
- The hours of work,
- Date of appointment.
Similar provisions are mentioned in other states' Shops and Commercial Establishments Acts. Though I don't have a copy of the Indian Factories Act, 1948, I am sure the same would be written there, probably with some other terms or nomenclature.
Regards,
Umesh Chaudhary
[Email Removed For Privacy Reasons]
From India, Delhi
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You must have to issue appointment letter if firm has to be incorporated otherwise you have to make kind of agreement with the people under proprietary concern.
From India, Chandigarh
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From India, Chandigarh
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You have mentioned that your CS has completed the Company Registration, indicating that your company is already incorporated. Therefore, there should not be any hesitation in issuing the Appointment Letters. Your CS may be waiting to address other formalities. Please provide clarification so that appropriate guidance can be given by the seniors.
From India, Ahmadabad
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From India, Ahmadabad
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As your company has just started the process and has not been incorporated, you can't use the company's name for any action or on any documents until all the fees are paid to the ROC and an Incorporation Certificate is issued by the ROC. Please understand that a company is a legal entity and will only come into existence when the ROC signs and delivers the Incorporation Certificate. Under no circumstances can you use the name of this company before it becomes a legal entity. In the meantime, employees can be recruited, but under a different account or firm's name or on a Proprietor Firm's letterhead.
Once the company is incorporated, the appointment letter can be issued, but the signatory should have the authority as per the Articles & Memorandum of Association, apart from fulfilling the minimum paid-up capital requirements to conduct the business. Another important point is that the appointment should be related to the business mentioned in the main clause of the Articles/Memorandum, as companies are legally authorized to engage in specific business activities.
Thanks.
From India, Delhi
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Once the company is incorporated, the appointment letter can be issued, but the signatory should have the authority as per the Articles & Memorandum of Association, apart from fulfilling the minimum paid-up capital requirements to conduct the business. Another important point is that the appointment should be related to the business mentioned in the main clause of the Articles/Memorandum, as companies are legally authorized to engage in specific business activities.
Thanks.
From India, Delhi
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