Transfer of employees
Arun
(Querist) 19 August 2014
This query is : Resolved
Dear Experts,
Kindly clarify on the below,
We have an potential company who wants to take over only the existing business and Employees alone and not buying the company.
They are issuing the fresh appointment letter from the new entity.
In this case, in whose responsibility The Gratuity and PL encashments will come.
Kindly Clarify
Kumar Doab
(Expert) 20 August 2014
In the absence of written agreement/settlement to this effect between two entities/employees no one will take responsibility.
Hence negotiate properly.
Show the docs to your labor consultant/ service lawyer and form union and affiliate with trade unions.
T. Kalaiselvan, Advocate
(Expert) 24 August 2014
Better consult a local service law practicing lawyer for proper opinion in this regard.
H.M.Patnaik
(Expert) 08 September 2014
In the given circumstance , settlement of retiral benefits of employee remains the responsibility of your company as the taken over employees will join the new entityas fresh ly inducted employees. Hence as advised by Experts above carefully draft the MOu or agreement between the two organisations which may provide room for meeting such eventualities.
Arun
(Querist) 11 September 2014
Thank you Experts
