Hello All, I wanted guidance / inputs on what are the steps /process to be followed when employees of a company have been transferred from entity to another.Such as issuance of new offer letter on the letter head of the new company,etc. We are a service and product based company and now as part of the business decision it has beend ecided to form product company separately from service company. A few of our employees who were working on the product will be part of the product based company. I need inputs from HR point of view / action. It's slightly urent. TIA.

Not sure about offer letter but you can issue transfer letter from existing company and appointment letter on new subsidiary’s letter head (including the transfer point), new id card if applicable. When if they exits, the letter should include both the experiences in one letter.

Yup, I get it. Thank you.

I understand that the employees will be exiting the current entity and joining the new one. In case of transfer, the benefits of gratuity, pf, esi, so on will continue from the current entity, and a clarification documentation to various labour departments have to be done with financial statements adjustments. Is your company ok with it? It will be good to understand the reason of creating a new entity to suggest a less complicated road.

Well, the new company has been registered and the pupose is that new company is based on our product and the purpose is to establish the product company, while he service company will be more of Devshop for the product company and would also take up projects independently. Some of the existing employees will be "transferred" and not exit into the new entity.While statutory reuirements have been taken care of, wanted to know more from an internal process ppoint of view.

Thank you for clarifying. In this case, a transfer cum continuity letter on the letter head of the new entity can be provided, requesting an acknowledgment from the employees. I also suggest to have • a communication about it through leadership to all in town hall, monthly all hands or others, followed by HR facilitated 1:1 query response session with employees. • a common email to transferred employees on continued benefits and if any major thing changes. • faqs can be created based on the pool of questions asked/received, circulated among transferred employees and stay employees, respectively. These may be done prior to the letter handover. After fortnight, an open hour may be kept for transferred employees to ask questions in 1:1 either with HR or Leadership.

Thank you @Wristy. Point 1 has already been carried out, now the process is all that's required to be carried out for the clean seaparation of the 2 entity and the employees. New email ids have been created, communicated and in use already. So if there's anything else in addition to this, then please share your thoughts.

All set then 👍🏻 😊