How to deal with the personnel transfer and labor contract of two independent legal person subsidiaries of the parent company?

Due to the personnel transfer of two independent legal person subsidiaries of the parent company, the main body of employment has changed, and the new main body of employment has formed a new labor relationship with employees, so it is necessary to re-sign a written labor contract with employees, and the labor contract between employees and the original unit is terminated.

Legal analysis

The original unit shall issue a certificate of termination of the labor contract, and handle the transfer procedures of the relationship between files and social insurance for employees within fifteen days. Economic compensation should also be paid according to legal standards. The new unit shall assume the responsibility of paying insurance from the date of employment. If the economic compensation is not paid, the working years of the laborer shall be calculated continuously. According to the law, if the employer fails to sign a written labor contract with the employee for more than one month and less than one year from the date of employment, it shall pay the employee twice the monthly salary and make up the written labor contract with the employee. In order to avoid the loss risk of Company A in the case, the new unit should sign a written labor contract within one month after the employee arrives at the new work unit. The signing of a labor contract is the most favorable evidence to prove the existence of labor relations, and it is also the best norm of rights and obligations between employers and workers. Therefore, signing a labor contract plays a great role in safeguarding the legitimate rights and interests of workers themselves. In order to avoid and reduce labor disputes, the employer should be required to sign a written labor contract with itself in time, stipulating the main terms such as salary, post, duration and working hours system.

legal ground

People's Republic of China (PRC) labor contract law

Article 10 To establish labor relations, a written labor contract shall be concluded. If a labor relationship has been established and a written labor contract has not been concluded at the same time, a written labor contract shall be concluded within one month from the date of employment. If the employer and the employee conclude a labor contract before employment, the labor relationship shall be established from the date of employment.

Article 35 The employer and the employee may change the contents agreed in the labor contract through consultation. Changes to the labor contract shall be made in written form. The revised text of the labor contract shall be held by the employer and the employee respectively.