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Personnel Action issue

Hi Gurus,

I have one issue with the client now.

There are 2 Indian subsidiary companies. For one company, already SAP is there with Negative time management. Both of these companies were acquired by one company from Europe. Both the companies would be having different company codes.

As of now, the employee movements are happening in these 2 companies by terminating the employee in one company & hiring freshly the employee in another company. The service & seniority will be maintained offline. But now since the second company is also going for SAP, they wanted it to be done through SAP by protecting seniority & service for the benefits like PF,Gratuity, Pension etc.  Globally, they are handling the employee movements with the Status Change action with Transfer as reason but here we need to check whether any statutory impacts will be attached to it in Indian scenarios. I have checked the action its changing the company code also with the change of Personnel Area only since it is not terminating n hiring freshly. Moreover they wanted to have the same personnel number range for both of these companies So, Can you please suggest me about what kind of statutory impacts it may have by running this action for employee movements (Status change with transfer reason).

I thought that by doing this Form 16 may vary if the employee changes in between the year & also any other statutory impacts? or can we go ahead with terminating & hiring freshly for that but by doing that can we protect the seniority of the employee ? Can we maintain the original date of joining etc.. in IT0041 as service start date & linking the same to statutory things etc.. Please give me few inputs ASAP.. Your kind inputs will be appreciated & awarded.



Former Member
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