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santosh (engineer)     18 October 2012

Transfer to subsidary company

Can the employees of a parent company  be forcibly  transferred to a subsidary company of its own ?

I am asking this question in context of Air India  is going to hive off its engineering department to a engineering company and want to transfer its 7000 employee to the  new subsidary company (AIESL) which will further attract private investment and become a private comapny in the future (which the employees fear).

I want to know whether the air India management can do so by just issuing a notification (saying the terms and condition of service in the new company will be same as the old company) or they are bound to take the option of employees/union.

Details regarding the plan is available at https://www.business-standard.com/india/news/air-india-staff-to-decidefatecabinet-plan/471295/

 



Learning

 2 Replies

Kumar Doab (FIN)     18 October 2012

Employee shall choose the master.

Anjali Sharma (advocate)     19 October 2012

It depends upon the term and condition of your employment letter. If such term regarding the relocation is mentioned in your employment letter and you have agreed for the same, then the company can relocate you any time and in any of its company as per their requirement.


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