RegisterLog In

Transfer from 1 sister company to another

melody
Member
Thu, 20 Sep 2018 02:26:54 PM  (Last updated: Sat, 22 Sep 2018 07:41:53 PM)

Dear Siew,

The company has decided to transfer a staff from company A to company B within the Group. Job title and job scope are same. Company A issued a transfer letter. Company B issued an appointment letter.  HR dept has requested the staff to also submit a resignation letter to company A since he is started new employment with company B but my opinion is - it is not necessary to resign becuase the transfer letter already spelt out management intention of transfer. 

Please advise what is the right way?

Thank You

SuharinKL
Contributor
Thu, 20 Sep 2018 03:49:53 PM
Originally posted by melody on Sat, 22 Sep 2018 07:41:53 PM

Dear Siew,

The company has decided to transfer a staff from company A to company B within the Group. Job title and job scope are same. Company A issued a transfer letter. Company B issued an appointment letter.  HR dept has requested the staff to also submit a resignation letter to company A since he is started new employment with company B but my opinion is - it is not necessary to resign becuase the transfer letter already spelt out management intention of transfer. 

Please advise what is the right way?

Thank You

Hai there,

Allow me to answer your enquiries as follows:-

1. Transfer and secondment are 2 different terms which loosely used by the public. Transfer is made within the same company whilst secondment is made between 2 companies.

2. In your situation, it is more proper to use the term 'secondment'. 

3. When there is secondment, it has to be stated clearly who will pay the salary of the employee whether the Company A or Company B. This is important as it will determine who will be the employer of the said employee.

4. If let say the Company B will pay the salary and other statutory deductions, then Company A may no longer be the employer for the said employee. Any disputes by the employee will be handled by Company B. Company B also will accountable for any liability related to the said employee.

5. In such situation, since Company B will be the employer. the said Employee need to end his/her employment with Company A and at the same time to start new employment with Company B.

Hope the above answers your enquiries.

Regards,

suharinsulaiman@gmail.com

melody
Member
Thu, 20 Sep 2018 04:00:01 PM
Originally posted by SuharinKL on Thu, 20 Sep 2018 03:49:53 PM

Hai there,

Allow me to answer your enquiries as follows:-

1. Transfer and secondment are 2 different terms which loosely used by the public. Transfer is made within the same company whilst secondment is made between 2 companies.

2. In your situation, it is more proper to use the term 'secondment'. 

3. When there is secondment, it has to be stated clearly who will pay the salary of the employee whether the Company A or Company B. This is important as it will determine who will be the employer of the said employee.

4. If let say the Company B will pay the salary and other statutory deductions, then Company A may no longer be the employer for the said employee. Any disputes by the employee will be handled by Company B. Company B also will accountable for any liability related to the said employee.

5. In such situation, since Company B will be the employer. the said Employee need to end his/her employment with Company A and at the same time to start new employment with Company B.

Hope the above answers your enquiries.

Regards,

suharinsulaiman@gmail.com

Hi, Thanks, you are good and very clear indeed.

Thanks so much

melody
Member
Thu, 20 Sep 2018 04:08:14 PM
Originally posted by SuharinKL on Thu, 20 Sep 2018 03:49:53 PM

Hai there,

Allow me to answer your enquiries as follows:-

1. Transfer and secondment are 2 different terms which loosely used by the public. Transfer is made within the same company whilst secondment is made between 2 companies.

2. In your situation, it is more proper to use the term 'secondment'. 

3. When there is secondment, it has to be stated clearly who will pay the salary of the employee whether the Company A or Company B. This is important as it will determine who will be the employer of the said employee.

4. If let say the Company B will pay the salary and other statutory deductions, then Company A may no longer be the employer for the said employee. Any disputes by the employee will be handled by Company B. Company B also will accountable for any liability related to the said employee.

5. In such situation, since Company B will be the employer. the said Employee need to end his/her employment with Company A and at the same time to start new employment with Company B.

Hope the above answers your enquiries.

Regards,

suharinsulaiman@gmail.com

However there is this 1 clause that say : THE TRANSFER SHALL NOT CONSTITUE A BREAK IN THE CONTINUITY OF THE PERIOD OF EMPLOYMENT WITH THE COMPANY which means the staff welfare and entitlements for long years of service remained unchange even though he is seconded to another sister company.

If he resigned, then there is a break right?

SuharinKL
Contributor
Fri, 21 Sep 2018 02:20:29 PM
Originally posted by melody on Thu, 20 Sep 2018 04:08:14 PM

However there is this 1 clause that say : THE TRANSFER SHALL NOT CONSTITUE A BREAK IN THE CONTINUITY OF THE PERIOD OF EMPLOYMENT WITH THE COMPANY which means the staff welfare and entitlements for long years of service remained unchange even though he is seconded to another sister company.

If he resigned, then there is a break right?

The clause is referring to "transfer" and not 'secondment'.

BAsically, it goes back to the intention of parties.

A normal secondment would be: Company A will still be the employer, despite the employee is now working under Company B. As such, the said employee's length of service is not affected.

But, if the intention is for Company B to become the employer and pay the salary, then the said employee will start fresh unless you can get the approval from  Company B to acknowledge the services of the said employee while he/she is in Company A. 

Regards,

suharinsulaiman@gmail.com

melody
Member
Sat, 22 Sep 2018 07:41:53 PM
Originally posted by SuharinKL on Fri, 21 Sep 2018 02:20:29 PM

The clause is referring to "transfer" and not 'secondment'.

BAsically, it goes back to the intention of parties.

A normal secondment would be: Company A will still be the employer, despite the employee is now working under Company B. As such, the said employee's length of service is not affected.

But, if the intention is for Company B to become the employer and pay the salary, then the said employee will start fresh unless you can get the approval from  Company B to acknowledge the services of the said employee while he/she is in Company A. 

Regards,

suharinsulaiman@gmail.com

Thank You so much

  This topic is closed