Our company is shifting us from a Private Limited to another LLP, asking for resignation from the Pvt Limited, and then they will give us an offer letter from the new entity. The question is, how will they pass on all the benefits legally, such as earned leaves, Gratuity, etc...
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Since these two are two entities, joining the LLP will make the employee lose all the benefits of continuous service. It is okay you can transfer the PF (or ESI) from one company to another, and that will not make any difference, but the continuous service required for gratuity, leave, and retrenchment benefits (in the case of employees not having managerial powers) will be lost.
In order to avoid it, there should be a settlement signed by the employee, management of Pvt Ltd Company, and the management of the LLP firm. The same should also be sent to the government for registration. The settlement should clearly mention how the service will be treated for the purpose of gratuity, leave and accumulation of leaves, retrenchment and lay off benefits, and seniority for promotion and other service benefits, if any. It need not be made for each individual employee, but one settlement applicable to all the employees is enough provided the same is signed by the office bearers of the trade union.
In the case of a situation where there is no Union, the employees have to resolve some few employees to sign on their behalf.
From India, Kannur
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4758In order to avoid it, there should be a settlement signed by the employee, management of Pvt Ltd Company, and the management of the LLP firm. The same should also be sent to the government for registration. The settlement should clearly mention how the service will be treated for the purpose of gratuity, leave and accumulation of leaves, retrenchment and lay off benefits, and seniority for promotion and other service benefits, if any. It need not be made for each individual employee, but one settlement applicable to all the employees is enough provided the same is signed by the office bearers of the trade union.
In the case of a situation where there is no Union, the employees have to resolve some few employees to sign on their behalf.
From India, Kannur
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PF Online Transfer.pdf
Steps to transfer PF amount.jpg