In the procedure of reconstruction of the company, I need to transfer part of the employees into one of our affiliate companies. How can I do that? Do I need to compensate the employees for terminating them?
In order to do this, you need to first terminate employment with the employees and then invite them to enter into another labor contract with the affiliate company. If they agree, then you do not need to pay them any compensation. However, you must make sure that the employees can enjoy the same or better benefits after being transferred to another company. If after the transfer, the employee benefits in the new company are actually inferior to those enjoyed in the former company, then they may refuse to enter into a labor contract with the affiliate company. In that case, according to related regulations, you must pay compensation for their unemployment.
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