• Transfer of officers from subsidiary to parent company

Does a parent company (that hold 51 % of share of subsidiary) have rights to transfer the employee of subsidiary company to their firm, when parent company and subsidiary are functioning as different organisation. 
both have their own board of directors , individual balance share, totally different administration.
if transfer is not possible then is it possible to depute the subsidiary employees to parent company on tenure basis.
Asked 5 years ago in Civil Law

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

13 Answers

These things can happen if proper procedures are followed and there are rules governing the transfer. Otherwise if this is done against the interests of the employee it can always be challenged in a court of law.

Kindly refer the manual of rules and regulations applicable to your organization.

Regards 

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Employees of subsidiary company can be deputed to principal concern with the consent of employees 

Ajay Sethi
Advocate, Mumbai
94910 Answers
7570 Consultations

5.0 on 5.0

It depends on the internal policies of he said company. If arbitrary you can challenge the same before labour court

Prashant Nayak
Advocate, Mumbai
32059 Answers
183 Consultations

4.1 on 5.0

1) If parent company and subsidiary company has mutual agreement to transfer the employees from each other company than it's acceptable.

Ganesh Kadam
Advocate, Pune
12932 Answers
256 Consultations

4.9 on 5.0

If the clause has been mentioned in the appointment letters or there is any agreement with the employees.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

If clause has been mentioned in contract then it is possible to transfer the employees.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

The subsidiary company management can take such step to transfer or depute the employee the parent company even if it hold share cannot take such steps. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Mergers, Acquisitions are governed by the Companies Act. Such transfers are not illegal considering the welfare of employees.

Regards 

G.Rajaganapathy 

Lawyer 

High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
2132 Answers
8 Consultations

4.9 on 5.0

Hi, 

It is based the agreement or article executed between the companies and it the same is allowing for the transfer, the transfer can be done. If there is not such clause, the deputation may be done and the companies may prepare and execute additional documents/agreements as per the need of hour and effective working of each other.   

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

Subsidiary company can question trasfer not the employee,

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

Transfer is not possible, but the subsidiary company may very well depute the employee to the parent company for any term.

Swaminathan Neelakantan
Advocate, Coimbatore
2817 Answers
20 Consultations

4.9 on 5.0

Transfer of an employee from one company to another without any such rules or an understanding between both the companies and without any condtional offer to the employee can be termed as invalid and also illegal.

No forcible deputation also can be made.

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that if the employee is on the roll of the subsidiary company then there should not be such transfer to the parent company.
  2. But, yes it there has been an agreement between the parent and subsidiary company, and along with that you have also signed an agreement with the working company as clause mentioned therein then you can’t say no to it.
  3. You should through your agreement if employment with the present working company and then go as per law to challenge the same if wish to.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer