Legal Formalities Regarding Inter Company Transfer

Hello seniors,
I have a situation in our company which needs guidance.
We have taken over another company and the management of these two companies are same. A major part of the manufacturing process is being shifted to the new company and as such the employees related to the manufacturing process got transfered to the payroll of the new company.
The consequences are, PF, ESI & P.Tax formalities have been carried out against the now company's individual PF, ESI and P.Tax numbers.
My questions are,
1. what are the transfer procedures that we have to follow?
2. Since the management of the two company's are same, is it possible not to follow any transfer procedure?
3. If one of the employees leave now will there be any complication regarding full and final settlement and withdrawal of PF?
Please help me formulate an action plan so that I can come out with a solution.
Regards,
Shaswati Datta

Dear Shaswati,
First you need to clarify whether the new company is in same location.
If it is in same location, the same PF, ESI and PT numbers you can use only one letter of information needs to give to the above authorities.
Transfer procedure in terms of employees are -
1. You need to serve a transfer letter to the employees those who have got transfered to the new location. ( Because the location and addres is different)
2. Since the management is same, still you need to follow the transfer procedure for the documentation purpose.
3. If employee leaves now, their wont be any complication in full and final settlement as you have already transferred the employees on payroll of new company. Let the new company HR prepares the F & F Settelement. Regarding the PF i dont think thier should be any complication as the PF number of the employee remain s same.
If you follw the transfer procedure, then the employees service would be considered as a continuos.
Thanks,
Amit

Thanks for the reply Mr Shah.
For us, we have two different corporate addresses with two different company name.
Though we transfer employees we do not follow any transfer procedure, which means, their PF & ESI nos don't get transferred to the other company's which has seperate PF & ESI numbers.
Since, both these companies might get merged in future with single company name, the transfer procedures are not followed.
My question is what are the legal complications for not following any transfer procedure? Is it necessary to change the name of the company for the employees with the corresponding effect along with the transfer?
Regards,
Shaswati

Hi Shaswati,
You have mentioned that, you have both the companies on different names.
Then definitely you need to follow the transfer procedure.
As you have also mentioned that, the 2nd company has got different PF & ESI number for their employee. and in ur 1st post you have also mentioned that, the transfered employee will be on the payroll of 2nd company where the person is transferred.
In such cases, you need to follow the transfer procedure strictly. The PF and ESI number for the employee you may keep same. Only thing you need to do is, you need to file separate returns and challans for the both accounts of the employees.
Hope noe it is clear.
Thanks,
Amit