Take over of a company - should the employees ask for good will?

Sharan1856
Our company was in a joint venture. Now, the Indian company has sold the remaining shares to an outsider. In view of the above, should the employees ask for goodwill from the parent company?
umakanthan53
Dear Sharan,

As per your own statement, the company was a joint venture of an Indian Company and a Foreign Company. Now there is a change in the shareholding of the Company by transfer through the sale of the entire Indian Company's shares to that of the Foreign Company. The Indian Company has now become the wholly-owned subsidiary company of the Foreign Company. This change represents a shift in the constitution of the same entity without affecting the service conditions of the employees already in service.

Since it is merely an internal transfer of shares between the partners of the joint venture, it cannot be treated as a transfer of the undertaking. Moreover, you have not indicated any changes in the service conditions of the employees or any breaks in their service. The ship continues to operate with its crew as before, albeit now under the exclusive authority of one of the former Captains. This is the extent of the changes.

Therefore, I believe that the employees have no stake in the goodwill likely to be received by the Parent Company.
Bharat Gera
Dear Friend,

Mr. Umakanthan is absolutely correct in analyzing the situation. The change in the constitution of the company is not related to employees, and if it does not affect the service conditions, employees have no say in the matter.

No, you cannot ask for goodwill.

Warm Regards,

Bharat Gera
HR Consultant
9322404765
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