At a glance
| Document type | Employer letter template |
|---|---|
| Issued by | Employer |
| Templates included | 5 ready to use versions |
| Download format | Word (.docx) |
| Statutory reference | None cited on this page |
| Last reviewed | 26 August 2026 |
| Maintained by | Engage HR editorial team |
Transfer, deputation and transfer to a group company
These three are often papered with the same letter. They differ in who the employer is at the end of it, which decides everything about service continuity and statutory dues.
| Internal transfer | Deputation or secondment | Transfer to a group company | |
|---|---|---|---|
| Who employs the person afterwards | The same employer. Only the posting changes. | The same employer. The person works under another entity's direction. | The receiving entity, unless the arrangement is structured otherwise. |
| Continuity of service | Unbroken. Nothing to preserve. | Unbroken with the seconding employer. | Broken unless the letter expressly preserves it and the receiving entity accepts the liability. |
| Who pays | The employer, from the same payroll. | The seconding employer, usually recharged to the host. | The receiving entity, from its own payroll and its own registrations. |
| Consent needed | Not where a transfer clause covers it, though notice and support still matter. | Usually yes, because the working arrangement changes materially. | Yes. A person cannot be moved to a different employer without agreeing to it. |
| What the letter must add | Reporting date, new reporting line, effect on location-linked pay. | Host, duration, whose policies apply, what happens at the end. | Continuity of service, treatment of accrued leave and gratuity, and the new terms in full. |
Standard transfer letter format
A transfer letter has seven parts. It carries more operational detail than most employer letters, because the employee has to act on it.
- Header block. Letterhead, reference number, date, employee name, employee code, current designation, current department and current location.
- The instruction. The new location, department or entity, the effective date, and the reporting date where it differs from the effective date.
- Basis. A reference to the transfer clause in the appointment letter, or to the employee's request where the move was asked for. This is the paragraph that tells the reader why the employer can do this.
- Reporting and scope. Who the employee reports to at the new posting, what the role covers, and who to contact on arrival.
- Effect on terms. Designation, remuneration, location-linked components, leave balance, notice period. State each one, including the ones that do not change.
- Relocation and support. What the employer will meet, against what documents, within what window, and any joining time allowed.
- Acknowledgement. A countersignature block, and a date by which the letter should be returned.
Where components of pay are being restated because of the location, attach a comparison of the current and revised structures rather than only the new one. Employees who can see both stop assuming a cut has been hidden in the change.
5 letter templates
Transfer Letter for transfer to another location
The general case. The two paragraphs that matter most are the basis for the transfer and the effect on location-linked pay.
[Company Name] [Company Address] Ref: [Reference Number] Date: [Date] To [Employee Name] Employee code: [Employee Code] Designation: [Designation] Department: [Department] Current location: [Current Location] Subject: Transfer to [New Location] Dear [Employee Name], In the interest of the business and in accordance with the transfer provision in your appointment letter dated [Appointment Letter Date], you are transferred to our [New Location] office with effect from [Effective Date]. 1. Reporting You are required to report to [Reporting Manager Name], [Designation], at [New Location Office Address] on [Reporting Date]. [Contact Name], [Contact Designation], will assist with local joining formalities and can be reached at [Contact Details]. 2. Designation and scope Your designation remains [Designation]. Your responsibilities at [New Location] will cover [Scope or Territory]. [Where applicable: the role description is attached as Annexure A.] 3. Effect on remuneration Your gross remuneration is unchanged. Components linked to place of posting, including [Component] and [Component], have been restated to the structure applicable at [New Location]. Annexure B sets out your current and revised structures side by side so that the effect on monthly take-home is visible. 4. Relocation support [Company Name] will meet the following on production of supporting documents within [Claim Window]: [Support Item, for example transport of household goods up to [Limit Description]], [Support Item, for example travel for you and your dependants] and [Support Item, for example temporary accommodation for up to [Period]]. 5. Joining time You are allowed [Number] working days of joining time between your last working day at [Current Location] and [Reporting Date]. This is in addition to your leave entitlement. 6. Handover You are required to complete handover of your current responsibilities to [Successor Name] by [Handover Date]. 7. Terms that continue unchanged All other terms and conditions of your appointment letter dated [Appointment Letter Date] remain in full force. Please sign and return the duplicate of this letter in acknowledgement by [Acknowledgement Deadline]. For [Company Name] [Authorised Signatory Name] [Designation] Acknowledged: [Employee Name] Date: [Date]
Transfer Letter for transfer to another department or function
No relocation, so the operative detail is scope, reporting and what happens to targets or variable pay part way through a cycle.
[Company Name] [Company Address] Ref: [Reference Number] Date: [Date] To [Employee Name] Employee code: [Employee Code] Designation: [Designation] Current department: [Current Department] Subject: Transfer to [New Department] Dear [Employee Name], We are writing to confirm your transfer from [Current Department] to [New Department] with effect from [Effective Date]. 1. Reporting With effect from [Effective Date] you will report to [New Reporting Manager Name], [Designation]. Your reporting relationship with [Current Reporting Manager Name] ends on [Handover Date]. 2. Designation and scope Your designation remains [Designation] and your band remains [Band or Grade]. Your responsibilities in [New Department] will include [Responsibility], [Responsibility] and [Responsibility]. 3. Handover You are required to complete handover of your current responsibilities, including [Named Responsibility] and [Named Responsibility], to [Successor Name] by [Handover Date]. 4. Remuneration and variable pay Your fixed remuneration is unchanged. For the current [Cycle Name] cycle, your variable pay will be assessed [Treatment, for example on your [Current Department] targets for the period to [Effective Date] and on your [New Department] targets thereafter, weighted by months served in each]. Your revised targets will be issued by [New Reporting Manager Name] within [Number] working days of [Effective Date]. 5. Access and systems Your system access will be amended on [Effective Date]. Please raise any access required for the new role with [Contact Name] before that date. 6. Terms that continue unchanged All other terms and conditions of your appointment letter dated [Appointment Letter Date] remain in full force. Please sign and return the duplicate in acknowledgement. For [Company Name] [Authorised Signatory Name] [Designation] Acknowledged: [Employee Name] Date: [Date]
Transfer Letter for transfer at the employee's request
Say in the letter that the employee asked for it. That single line decides who bears the cost and closes off a later argument that the move was imposed.
[Company Name] [Company Address] Ref: [Reference Number] Date: [Date] To [Employee Name] Employee code: [Employee Code] Designation: [Designation] Current location: [Current Location] Subject: Transfer to [New Location] on your request Dear [Employee Name], Further to your written request dated [Request Date] and the discussion with [Manager Name] on [Discussion Date], we are able to accommodate your transfer to our [New Location] office with effect from [Effective Date]. 1. Reporting You are required to report to [Reporting Manager Name], [Designation], at [New Location Office Address] on [Reporting Date]. 2. Designation and scope Your designation remains [Designation] and your band remains [Band or Grade]. Your responsibilities will be [Scope], which reflects the requirement at [New Location] and differs from your current scope in that [Stated Difference]. 3. Effect on remuneration Components linked to place of posting, including [Component] and [Component], will be restated to the [New Location] structure with effect from [Effective Date]. Annexure A shows your current and revised structures. Please note that this restatement [increases / reduces] your monthly take-home, and your acknowledgement of this letter confirms that you have seen and accepted that position. 4. Relocation cost As this transfer is at your request, relocation costs will be borne by you. [Where applicable: [Company Name] will, as an exception, meet [Named Item] only.] 5. Joining time You may avail [Number] working days of joining time. [Where applicable: this will be adjusted against your leave balance.] 6. Handover Handover of your current responsibilities to [Successor Name] is to be completed by [Handover Date]. This transfer is conditional on that handover being completed. 7. Terms that continue unchanged All other terms and conditions of your appointment letter dated [Appointment Letter Date] remain in full force. Please sign and return the duplicate in acknowledgement by [Acknowledgement Deadline]. For [Company Name] [Authorised Signatory Name] [Designation] Acknowledged: [Employee Name] Date: [Date]
Transfer Letter for transfer to another group company
A change of employer, not a change of desk. The letter has to deal with continuity of service, accrued leave and statutory dues, or the employee loses years of standing without being told.
[Company Name] [Company Address] Ref: [Reference Number] Date: [Date] To [Employee Name] Employee code: [Employee Code] Designation: [Designation] Subject: Transfer of employment to [Receiving Entity Name] Dear [Employee Name], We are writing to record the transfer of your employment from [Company Name] to [Receiving Entity Name] with effect from [Effective Date], on the terms set out below and subject to your acceptance. 1. Nature of this transfer With effect from [Effective Date], [Receiving Entity Name] will be your employer. Your employment with [Company Name] will end on [Last Day With Current Entity] for the purpose of the change of employer only, and not by way of resignation, retrenchment or termination. 2. Continuity of service Your service with [Company Name] from [Date of Joining] will be treated as continuous and unbroken with [Receiving Entity Name] for all purposes, including notice period, leave accrual and any entitlement that accrues by reference to length of service. [Receiving Entity Name] accepts liability for that accrued service. 3. Terms with the receiving entity Designation: [New Designation or "unchanged"]. Reporting to: [Reporting Manager Name], [Designation]. Place of work: [New Location]. Remuneration: as set out in Annexure A. Notice period: [Notice Period]. 4. Accrued leave Your accrued and unavailed leave balance of [Leave Balance Description] as at [Last Day With Current Entity] will be carried across to [Receiving Entity Name] and will not be encashed on transfer. 5. Statutory registrations Your provident fund, insurance and other statutory registrations will be transferred to the registrations held by [Receiving Entity Name]. [Contact Name] will confirm the details and the forms required from you. 6. Full and final settlement No full and final settlement will be processed on this transfer, as your employment is continuing with [Receiving Entity Name] on the basis set out above. 7. Your acceptance This transfer requires your agreement. Please sign and return the duplicate of this letter by [Acceptance Deadline] to confirm your acceptance of employment with [Receiving Entity Name] on the terms above. For [Company Name] [Authorised Signatory Name] [Designation] For [Receiving Entity Name] [Authorised Signatory Name] [Designation] Accepted: [Employee Name] Date: [Date]
Transfer Letter for deputation or secondment
The employer does not change. What the letter has to fix is duration, whose rules apply day to day, and what happens when the deputation ends.
[Company Name] [Company Address] Ref: [Reference Number] Date: [Date] To [Employee Name] Employee code: [Employee Code] Designation: [Designation] Department: [Department] Subject: Deputation to [Host Entity Name] Dear [Employee Name], You are deputed to [Host Entity Name] at [Host Location] with effect from [Start Date] for a period of [Duration], ending on [End Date], on the terms below. 1. Your employer during the deputation [Company Name] remains your employer throughout. Your remuneration will continue to be paid by [Company Name] through its payroll, and your statutory registrations remain with [Company Name]. 2. Working arrangements During the deputation you will work under the day to day direction of [Host Supervisor Name], [Designation], at [Host Entity Name]. You will observe the working hours, site rules, safety requirements and access controls in force at [Host Location]. 3. Which policies apply Your leave, attendance, conduct and disciplinary matters remain governed by the policies of [Company Name]. Leave is to be applied for through [System Name] and approved by [Company Name] Manager Name, after informing [Host Supervisor Name]. Any matter of conduct arising at [Host Location] will be dealt with by [Company Name] under its own procedure. 4. Deputation allowance You will be paid a deputation allowance as set out in Annexure A for each completed month of the deputation. The allowance is payable only for the period of the deputation and ceases on its conclusion. 5. Confidentiality Your confidentiality obligations to [Company Name] continue. Information belonging to [Host Entity Name] to which you have access is to be treated as confidential and is not to be brought back into [Company Name] systems on conclusion of the deputation. 6. Conclusion of the deputation On [End Date], or on earlier recall by [Company Name] on [Notice Period] notice, you will resume your duties at [Current Location] reporting to [Reporting Manager Name]. The deputation allowance ceases on the same date. This letter does not create any entitlement to employment with [Host Entity Name]. 7. Terms that continue unchanged All other terms and conditions of your appointment letter dated [Appointment Letter Date] remain in full force. Please sign and return the duplicate in acknowledgement. For [Company Name] [Authorised Signatory Name] [Designation] Acknowledged: [Employee Name] Date: [Date]
What it has to contain
| Element | Why it matters |
|---|---|
| The basis on which the transfer is made | A reference to the transfer clause in the appointment letter, to the applicable service rules, or to the employee's own request. This is the sentence that answers the question the employee will ask first, and its absence makes an instruction look arbitrary even where it is not. |
| Two dates: effective and reporting | The date the transfer takes effect and the date the employee is required to present themselves are frequently different, because handover and travel sit between them. Stating one date and expecting the other to be inferred produces a person who is either absent or double-counted on the roll. |
| The new reporting line and a named contact | The employee needs to know who they report to and who to approach on arrival. A transfer letter that names a location but no person leaves someone standing in an unfamiliar office with nobody expecting them, which is how a lawful transfer becomes a grievance. |
| The effect on every location-linked pay component | House rent allowance and other location-linked components change with the posting, so a transfer described as leaving pay unchanged can still reduce monthly take-home. Showing the current and revised structures together is what stops this being read as a concealed cut. |
| Relocation support, with the claim window and documents | Vague relocation promises are the most common source of post-transfer disputes. Naming what is covered, against what evidence, and by when a claim must be made converts a promise into something both sides can check. |
| For a change of employer, an express continuity of service clause | Moving to a group company ends one employment and starts another. Unless the letter preserves continuity and the receiving entity accepts the accrued liability, the employee silently restarts at zero for every entitlement measured by length of service. |
How to write one
- Read the appointment letter before drafting. Find the transfer clause and check what it actually permits: transfer between locations, between departments, between entities, or only some of these. Where there is no clause, the transfer needs the employee's consent, and the letter should be framed as an offer rather than an instruction.
- Establish whether the employer is changing. A move within the same legal entity and a move to a group company are different transactions with different consequences for service continuity, leave, statutory registrations and full and final settlement. Getting this wrong at the drafting stage is difficult to correct afterwards.
- Model the pay position at the new location. Run the revised structure before the letter goes out, and look at monthly take-home rather than the annual figure. Where the outcome is a reduction, decide whether to protect it, and say either way in the letter rather than letting the payslip communicate it.
- Give notice proportionate to the disruption. A change of department can take effect in days. A change of city affects schooling, housing and a spouse's employment, and a fortnight is not enough. Where the business need is urgent, say so and offer support that reflects the compression.
- Have the conversation before issuing the letter. Transfers land badly when the letter is the first the employee hears. Talk through the reason, the timing and the support, take their circumstances, and issue the letter afterwards. Where circumstances make the move difficult, it is better to know before the instruction is on paper than after.
- Fix the handover in the letter. Name the successor and the handover completion date. A transfer where the employee is expected to keep running the old scope remotely for months is a transfer that has not really happened, and both locations end up dissatisfied.
- Sequence the system changes to the effective date. Location, cost centre, reporting line, payroll structure, attendance rules and access all key off the same date. Changing them piecemeal produces attendance exceptions and stuck approvals through the first month at the new posting.
Where the power to transfer comes from
A transfer letter records a decision but does not create the authority to make it. That comes from the transfer clause in the appointment letter, from certified standing orders where they apply, or from service rules and settlements. Where none of these covers the move, it varies a term of employment and needs the employee's agreement.
A transfer letter records a decision. It does not, by itself, create the authority to make it. That authority comes from somewhere else, and identifying which source you are relying on is the first drafting step rather than an afterthought.
The usual source is a clause in the appointment letter. These clauses vary more than people assume. Some permit transfer to any location where the employer or its group companies operate. Some are limited to locations of the employer. Some cover department and function but say nothing about geography. Some are absent entirely, particularly in older letters and in letters issued for roles that were never expected to move.
Where an establishment is covered by certified standing orders, those may also deal with transfer, and where they do, they are part of the framework the employer has to work within. Service rules and settlements can operate the same way.
Where none of these covers the move, the transfer is a variation to a term of employment, and it needs the employee's agreement. That is not a reason to abandon the move. It is a reason to frame the letter as an offer, discuss it, and record the acceptance, rather than issuing an instruction that cannot be enforced if it is declined.
One further caution. Even where a clause plainly permits the transfer, the manner of exercising it matters. A transfer ordered with no notice, no support and no discernible business reason invites the argument that the power was used for a purpose it was not given for. That argument is harder to answer than it looks.
Internal transfer against a change of employer
The single most consequential distinction in this area is whether the person has the same employer after the letter as before it. Everything else follows from it, and organisations with several group entities routinely paper the second as though it were the first.
In an internal transfer the employment continues. There is nothing to preserve because nothing has broken. Leave balances carry, service is continuous by definition, statutory registrations are unaffected, and no settlement is due.
A move to another group company is a different transaction. One employment ends and another begins. Unless the documentation says otherwise, the employee's accrued service does not travel with them, their leave balance may be encashed and reset, their statutory registrations move to a different set, and every entitlement that accrues by reference to length of service starts again. None of this is visible on the day, which is why it is so often missed. It becomes visible years later, when a calculation that should have run from the original joining date runs from the transfer date instead.
The fix is a properly drafted continuity clause: service treated as continuous from the original date of joining for all purposes, the receiving entity expressly accepting the accrued liability, leave carried across rather than encashed, and the employee's written acceptance of the arrangement. Because the identity of the employer is changing, that acceptance is not optional.
The questions deputation leaves open
Deputation sits between the two. The employer does not change, but the employee works under another organisation's direction, often at its site and inside its processes. The letter has to answer four questions that an internal transfer letter never has to.
How long. An open-ended deputation drifts in the same way an open-ended acting appointment does, and after a year or two it is unclear which organisation the person belongs to. A specific end date, extendable in writing, is the discipline.
Whose rules apply. In practice the answer is split. Site rules, working hours, safety requirements and access controls follow the host, because the employee is physically inside its operation. Leave, conduct, discipline and performance stay with the employer, because that is where the employment relationship sits. Saying this explicitly prevents the situation where a host supervisor purports to discipline someone they do not employ.
What about confidentiality. The employee will see the host's information and will return with it in their head. The letter should state the obligation in both directions, including that host material is not to be brought back into the employer's systems at the end.
What happens at the end. Recall date, the role the employee returns to, and the fact that the deputation allowance ceases with it. Where a deputation is to a client, it is also worth stating that the arrangement creates no entitlement to employment with the host, since that is the expectation people form over a long posting.
Making a transfer stick
Most transfers that fail do not fail on the clause. They fail on the handling, and the failures are predictable enough to plan around.
Notice is the first. A change of city touches schooling, housing, a spouse's employment and often the care of a parent. Two weeks does not accommodate any of that, and an instruction that ignores it produces either a resignation or a resentful compliance that costs more than the transfer was worth. Where the business cannot give more time, saying so and increasing the support is better than pretending the compression is normal.
The second is money. Employees compare monthly take-home, not annual cost. A transfer that restates location-linked components can reduce take-home while leaving the annual figure alone, and the employee experiences that as a pay cut delivered without warning. Show both structures, and decide in advance whether to protect the difference for a period.
The third is the arrival. A transfer where nobody at the receiving location was told, where there is no desk, no system access and no clarity about the scope, undoes whatever goodwill the process had. Naming a contact in the letter and briefing the receiving manager before the letter goes out costs almost nothing and prevents most of this.
The last is the reason. People accept transfers they understand. Where the business reason is real, state it. Where the letter offers no reason at all, the employee will supply one, and the version they supply is rarely the flattering one.
Common mistakes
| Mistake | Why it causes trouble | What to do instead |
|---|---|---|
| Issuing a transfer with no clause to support it | The appointment letter names a fixed place of work and contains no transfer provision. The instruction is then a unilateral change to a contractual term, and an employee who declines is not refusing a lawful instruction. | Check the clause first. Where there is none, frame the move as an offer, negotiate it, and record the employee's agreement in writing. |
| Using a transfer to move a problem | Where a performance or conduct issue is the real reason, the transfer moves the issue to a location with less context and no record. The receiving manager inherits it blind, and the employee reasonably reads the move as punitive. | Deal with the underlying issue under the process that fits it. If a transfer is genuinely part of the answer, it should follow that process rather than replace it. |
| Silence on location-linked pay | The letter says remuneration is unchanged. The employee moves, the house rent allowance is restated downward for the new city, and the first payslip is lower. The employer is then arguing about whether it misled someone. | Attach a side by side comparison of the current and revised structures and refer to it in the letter, including where take-home reduces. |
| Treating a group company move as an internal transfer | No continuity clause, no acceptance of accrued liability, and no transfer of statutory registrations. The employee's service resets, which surfaces years later when an entitlement measured by length of service is calculated. | Draft it as a tripartite arrangement: the releasing entity, the receiving entity and the employee, with continuity expressly preserved and accepted. |
| Relocation support promised in a conversation | The manager mentions that the company will help with movers and a month of accommodation. Nothing is in writing, the claim is submitted, and the finance team applies a policy limit nobody mentioned. | Put the covered items, the limits, the documents required and the claim window in the letter or in a referenced annexure. |
| No joining time | The employee is expected to finish at one location on a Friday and appear at another on Monday, having also moved a household. Either leave is consumed to cover it or the reporting date slips, and the letter has provided for neither. | State a specific number of working days of joining time and say whether it is in addition to leave entitlement. |
Frequently asked questions
What should a transfer letter for an employee contain?
The employee's identifiers, the new location or department, and the effective date and the reporting date. The basis for the transfer, the new reporting line and a named contact, and the effect on designation and on every location-linked pay component. Then relocation support with its claim window, joining time, handover arrangements, and an acknowledgement block.
Can an employer transfer an employee without their consent in India?
It depends on the contract. Where the appointment letter contains a transfer clause covering the type of move, the employer can generally direct it. Where there is no such clause, or where the clause does not extend to that kind of transfer, the move varies a term of employment and requires the employee's agreement.
Does a transfer letter change the terms of employment?
Only the terms it states. Place of work, reporting line and location-linked pay components typically change. Everything else continues from the appointment letter, and the letter should close with an express confirmation of that so it is not read as a fresh contract.
What is the difference between a transfer and a deputation?
In a transfer the employee moves to a different posting with the same employer, or to a different employer where the letter says so. In a deputation the employer does not change at all: the employee works under another entity's day to day direction for a defined period, remains on the seconding employer's payroll, and returns at the end.
How much notice should be given for a transfer?
No fixed period applies generally, so the answer is set by the contract, any applicable service rules, and what is reasonable for the disruption involved. A departmental move can take effect in days. A change of city affects housing, schooling and a spouse's employment, and reasonable notice there is measured in weeks.
What happens to accrued leave when an employee is transferred?
In an internal transfer nothing changes, because the employment continues. In a move to a group company the balance will be encashed and reset unless the letter expressly carries it across and the receiving entity accepts it, which is one of several reasons that transaction needs different drafting.
Can an employee refuse a transfer?
Where a valid transfer clause covers the move and the instruction is reasonable, refusal is a matter the employer can deal with under its disciplinary process. Where there is no clause, or the move is to a different legal employer, the employee's agreement is required and refusal is not misconduct.
Should the transfer letter state the reason for the transfer?
Usually yes, in general terms. A letter that gives no reason invites the employee to infer one, and the inference is normally that the move is punitive. Where the reason is a genuine business requirement, saying so is what makes the instruction read as a decision rather than an imposition.
Handling transfers in Engage
Engage moves location, cost centre, reporting line, attendance rules and the payroll structure together on one effective date, so an employee does not spend their first month at a new posting logging attendance exceptions against the old site. Where the posting changes location-linked components, the revised structure is generated alongside the current one, which is the comparison the letter should be attaching anyway.
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