Transfer of Employee from a different legal entity

Dear HR Professionals !!

We have a company called A and for some internal issues our director established a new company called B. And all our employees are transferred from company A to company B. Employees are requesting for company transfer letters as that would effect their service continuity. Please suggest if we can any letter like that and is that legal correct.

Thank You

2 Likes

Hi KKA,

Whenever an employer transfers the employee from one business entity to the other, that employee is entitled to receive the transfer letter. It is a matter of right and the employer have to oblige this.

The change of business vehicle or name from A to B for any interal reason doesn’t matter in this case.

Moreover, if the new company and such transferred employees headcount falls within the prescribed limits of various employment/labour laws, then this new company is obligated to do the required amendments/transfer documentations under respective statutory compliances as well.

Hope the above answers your concern.

Regards,
Bhuvana Anand

3 Likes

Hi Bhuvana,

Thank you for your reply…

As our director came out of company A, the entity A directors and entity B directors are completely different.

Entity A and B are legally different

1 Like

Hi KKA,

Even though firm A & B are legally different but its employer who asked their employees to get transferred so its employers responsibility to issue transfer letter so that they should not loose their service continuity benefits.

Regards
Arpana

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