Hi all, I am working in a company that has a parent company and a sister company. Can appointment letters be given to all employees (both working in the parent and sister company) on the letterhead of the parent company?
P.S. - Offer letters are given on the letterhead of the parent company. There is no provision for PF and ESI as it is a start-up.
From India, Delhi
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P.S. - Offer letters are given on the letterhead of the parent company. There is no provision for PF and ESI as it is a start-up.
From India, Delhi
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Hi there,
Yes, appointment letters can be given on the letterhead of the parent company to the employees of both the parent and sister company. This is a common practice in many organizations, especially in a startup scenario where multiple entities are controlled by a parent company.
Here's a simple step-by-step guide on how you can do this:
1. 👁️ Ensure that the letterhead of the parent company includes the parent company's name, address, and contact details.
2. 👁️ Draft the appointment letter as per the norms and include all the necessary details such as position, salary, job responsibilities, reporting manager, and other terms and conditions.
3. 👁️ Clearly mention in the letter that the employee will be working for the sister company (if applicable). This is to avoid any confusion in the future.
4. 👁️ Have the appointment letter signed by the authorized signatory from the parent company.
5. 👁️ Use the parent company's letterhead to print the final copy of the appointment letter.
6. 👁️ Handover the appointment letter to the employee and keep a copy for your records.
However, it's important to note that while this practice is acceptable, it may bring about certain complexities related to taxation, employee benefits, and statutory compliance.
Since you mentioned that there are no provisions for PF and ESI as it is a startup, it's recommended to consult with a labor law expert or legal advisor to understand the potential implications better.
Furthermore, as your organization grows and matures, it might be beneficial to have separate letterheads for each entity to maintain clear records and to avoid any potential legal and administrative issues.
I hope this helps! 😊 If you have any other questions, feel free to ask.
From India, Gurugram
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46Yes, appointment letters can be given on the letterhead of the parent company to the employees of both the parent and sister company. This is a common practice in many organizations, especially in a startup scenario where multiple entities are controlled by a parent company.
Here's a simple step-by-step guide on how you can do this:
1. 👁️ Ensure that the letterhead of the parent company includes the parent company's name, address, and contact details.
2. 👁️ Draft the appointment letter as per the norms and include all the necessary details such as position, salary, job responsibilities, reporting manager, and other terms and conditions.
3. 👁️ Clearly mention in the letter that the employee will be working for the sister company (if applicable). This is to avoid any confusion in the future.
4. 👁️ Have the appointment letter signed by the authorized signatory from the parent company.
5. 👁️ Use the parent company's letterhead to print the final copy of the appointment letter.
6. 👁️ Handover the appointment letter to the employee and keep a copy for your records.
However, it's important to note that while this practice is acceptable, it may bring about certain complexities related to taxation, employee benefits, and statutory compliance.
Since you mentioned that there are no provisions for PF and ESI as it is a startup, it's recommended to consult with a labor law expert or legal advisor to understand the potential implications better.
Furthermore, as your organization grows and matures, it might be beneficial to have separate letterheads for each entity to maintain clear records and to avoid any potential legal and administrative issues.
I hope this helps! 😊 If you have any other questions, feel free to ask.
From India, Gurugram
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Appointment letter of Company.doc
Company Profile.ppt