Dear All Concerned,
We are in the process of acquiring a company. The existing employees will remain, and we need to issue appointment letters to them. To my knowledge, this letter would be an addendum to the appointment. However, recently the existing HR has mentioned that it would be a reappointment letter. I would appreciate your valuable input on the same. If possible, please send a draft copy of the letter.
Regards,
A. Mukherjee
From India, Calcutta
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1We are in the process of acquiring a company. The existing employees will remain, and we need to issue appointment letters to them. To my knowledge, this letter would be an addendum to the appointment. However, recently the existing HR has mentioned that it would be a reappointment letter. I would appreciate your valuable input on the same. If possible, please send a draft copy of the letter.
Regards,
A. Mukherjee
From India, Calcutta
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Dear Sh. Mukherjee,
Before providing a proper reply to your query, you need to clarify the following:
(i) Whether you are winding up your present company or if it still remains in existence?
(ii) Whether the new company will have a separate identity or if it will amalgamate with your present company?
However, it would not be appropriate to issue a re-appointment letter as this may lead to discontentment among the present employees, as they are likely to lose many benefits.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Before providing a proper reply to your query, you need to clarify the following:
(i) Whether you are winding up your present company or if it still remains in existence?
(ii) Whether the new company will have a separate identity or if it will amalgamate with your present company?
However, it would not be appropriate to issue a re-appointment letter as this may lead to discontentment among the present employees, as they are likely to lose many benefits.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Dear Mr. Kalsi,
Company X and Company Y are totally different entities. Company X filed for BIFR. Company Y submitted the tender for the acquisition of a division of Company X, which has now been accepted by BIFR. Even after the acquisition of the division of Company X by Company Y, Company X will continue its operations with its other divisions. The new Company Y is a Special Purpose Vehicle floated by the Parent Company, which belongs to a different state.
I hope I have been able to clarify all your points. I trust you now have a clearer picture.
Regards,
A. Mukherjee
From India, Calcutta
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Company X and Company Y are totally different entities. Company X filed for BIFR. Company Y submitted the tender for the acquisition of a division of Company X, which has now been accepted by BIFR. Even after the acquisition of the division of Company X by Company Y, Company X will continue its operations with its other divisions. The new Company Y is a Special Purpose Vehicle floated by the Parent Company, which belongs to a different state.
I hope I have been able to clarify all your points. I trust you now have a clearer picture.
Regards,
A. Mukherjee
From India, Calcutta
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The new Co and the old entity should have an agreement with unions (if any) of the old Co. If you are taking all the employees, have a clause in the agreement that all employees with all their existing benefits and previous service will be protected. Issue a letter to all the employees absorbing them into the services of the new entity with continuity of services, etc.
Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Since this is a BIFR case, there will be terms specified on which the business is acquired and how the existing workers are to be taken, whether they get the benefits carried forward, etc. So you need to act according to the conditions specified by BIFR or in the acquisition agreement.
If you are required to carry forward the previous employment benefits, then it must be mentioned clearly in the new appointment letter given that vide xyz order of the BIFR/Court, the employee will be entitled to benefits as below, or that they will be considered to be working for this company from the date of joining the new company, etc.
From India, Mumbai
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If you are required to carry forward the previous employment benefits, then it must be mentioned clearly in the new appointment letter given that vide xyz order of the BIFR/Court, the employee will be entitled to benefits as below, or that they will be considered to be working for this company from the date of joining the new company, etc.
From India, Mumbai
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Appointment Letter to an Employee for fixed period.doc