Hi,
a Pvt Ltd compnay X is selling all assets and transfering employees to another pvt ltd company Y. Y is issuing offer letters to all the employees and also the managers and directors of X and paying a limpsum to X for the assets.
Questions -
1. Should X make all employees send a resignation letter to X?
2. How should X compose the releasing letters to its employees ? such as -
a. As the asset purchase between X and Y is effective form Date, you will be relieved from duties of X from date. OR
b. As per your resignation, you are being relieved. and No mention of the acquisition.
what is the best way to avoid complications in future.
FYI, X is paying gratuity to the eligible employees.
CAclubindia
