Transfer / Posting Letter
A transfer or posting letter is issued by an employer to move an employee to another location, department or role.
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Notes on using this document
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NOTE FOR THE EMPLOYER
A transfer is valid where the contract of employment or the standing orders provide for transferability. A transfer that amounts to a punishment, or that is effected in bad faith or to victimise an employee, is open to challenge. Reasonable notice and, where the transfer involves relocation, reasonable assistance are good practice and reduce the risk of dispute.
Transfer / Posting Letter: what it is
A transfer or posting letter is issued by an employer to move an employee to another location, department or role. This version states the old and new place of posting, any change in designation, the new reporting manager, the effective and reporting dates, relocation support, and confirms that all other terms of employment stay the same.
When you need this document
- A company is opening a new branch or project site and needs experienced staff there.
- An employee is being moved to another city under the transfer clause in the appointment letter.
- An employee is shifting to a different department or reporting line within the same office.
- An employee has asked for a transfer, for example to be closer to family, and the company has agreed.
What it covers
- The employee's name, ID, current designation and current location.
- The new location, designation on transfer, reporting manager and effective date.
- The date and place to report at the new posting.
- A statement that all other terms, including compensation, remain unchanged.
- Relocation support provided, and an instruction to complete handover before being relieved.
- A reference to the transfer clause in the terms of appointment, and an acknowledgment and acceptance section for the employee.
How to fill, sign and use it
- Check the appointment letter or standing orders to confirm the employee's contract allows transfer to the proposed place.
- Decide the relocation support, such as travel, shifting expenses, temporary stay or joining time, and record it clearly.
- Fill in the form on this page and check the preview, giving reasonable time between the letter date and the reporting date.
- Have an authorised signatory sign the letter and give it to the employee with a duplicate copy.
- Ask the employee to sign the acknowledgment and acceptance on the duplicate and return it.
- Complete the handover and issue a relieving order from the current location, and inform the new office of the joining date.
Documents to attach or keep with it
- A copy of the transfer clause from the appointment letter or service rules
- Relocation policy or a note of the travel and shifting reimbursement allowed
- Handover checklist for the current role
The law behind it
A transfer is a matter of contract under the Indian Contract Act, 1872. An employer can usually transfer an employee where the appointment letter, service rules or standing orders allow it, and courts generally do not interfere with genuine transfers made in the ordinary course. A transfer made in bad faith, as a disguised punishment or to victimise an employee can be challenged. Working conditions at the new place, such as hours and leave, continue to be covered by the state Shops and Establishments law or other applicable labour law.
Common mistakes to avoid
- Transferring an employee whose contract has no transfer clause, without their consent.
- Giving very little time to relocate to another city, which invites refusal and dispute.
- Quietly reducing salary or benefits in a transfer letter that claims terms are unchanged.
- Not recording relocation support in writing, which leads to disputes over reimbursement later.
Transfer / Posting Letter: frequently asked questions
Can an employee refuse a transfer?
If the contract or service rules allow transfer and the transfer is genuine, refusal may be treated as disobedience and lead to disciplinary action. If there is no transfer clause, or the transfer is made in bad faith or as punishment, the employee can object in writing and, if needed, challenge it.
Can salary be reduced on transfer?
Not without the employee's agreement, where the contract does not allow it. This letter states that compensation remains unchanged. Location-based allowances may differ by city if the company policy provides for that, and any such change should be spelt out clearly in the letter.
How much notice should be given before a transfer?
No single notice period applies to all private employers. Company policy or standing orders may set one. In practice, a transfer to another city should allow reasonable time to arrange family, housing and schooling, and joining time is commonly given.
Is a transfer letter required if the employee asked for the transfer?
Yes, it is still advisable. A written letter records the new location, reporting line, effective date and that other terms continue. It avoids later confusion about salary, seniority or whether relocation costs were to be paid.
Last updated 11 October 2026.
General information on Indian law, not legal advice for your situation. Stamp duty, registration and fees differ by state, so check with the local office or an advocate before you rely on it.
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