"I have been employed with ABC Company for the past 7 years. The company operates multiple business units, two of which have been sold to XYZ company. As a result, I have been transferred to XYZ company.
1: Am I eligible for gratuity benefits from ABC?
2 :Can I withdraw my Provident Fund (PF) and pension accumulated during my time with ABC?
3: Is XYZ allowed to change my existing salary package?"
From United States, Chicago
1: Am I eligible for gratuity benefits from ABC?
2 :Can I withdraw my Provident Fund (PF) and pension accumulated during my time with ABC?
3: Is XYZ allowed to change my existing salary package?"
From United States, Chicago
As pr Indian system, the transfer documents will say whether the service of the employees in the transferee company will be considered for future benefits in the new company. If there is no settlement of gratuity at the time of transfer the employees should get the benefit of length of service with the old company in the new company. But this should be documented in the form of a tri partie settlement, a settlement with the employer of old company, new company and the employee concerned.
On joining the new company, the same UAN (of EPF) will continue but you will be allotted a new member id which will always be based on the company's PF code. Therefore, there will be two member ids under the same UAN. You will have to transfer the funds in the old PF account to the new PF account by visiting the member portal. This can be done after you have been allotted a new member id by the new company.
Salary package and other service conditions will always depend on the HR policy of the new company. As already said it will be embodied in the transfer document. Under normal circumstances, the salaries and other service conditions should not change, but it can be better than what the employee has been getting now. In respect of employees coming under the scope of Industrial Disputes Act, the same will be supported by the law but in respect of others, it will be decided mutually.
From India, Kannur
4250On joining the new company, the same UAN (of EPF) will continue but you will be allotted a new member id which will always be based on the company's PF code. Therefore, there will be two member ids under the same UAN. You will have to transfer the funds in the old PF account to the new PF account by visiting the member portal. This can be done after you have been allotted a new member id by the new company.
Salary package and other service conditions will always depend on the HR policy of the new company. As already said it will be embodied in the transfer document. Under normal circumstances, the salaries and other service conditions should not change, but it can be better than what the employee has been getting now. In respect of employees coming under the scope of Industrial Disputes Act, the same will be supported by the law but in respect of others, it will be decided mutually.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Enforcement of negative covenants in employment terms.pdf
Flexi Benefits Plan.doc