Separation
Separation means cessation of service of agreement with the organization.
Separation can be the
result of:
(a) Resignation (b) Discharge (c) Dismissal(d)
Retrenchment
(e) Lay-off
(f) Golden handshake (g)
Retirement
(a) Resignation
A resignation is a
voluntary separation. When a termination is initiated by the employee himself,
it is termed a resignation. Resignations may be put in voluntarily by the
employees on grounds of marriage especially in case of young girls, health,
physical disability, better opportunities elsewhere, or maladjustment with
company policy and affairs. The personnel department should investigate the
real reasons behind such resignations. A study of exit interviews over a period
of time may disclose a fiscal pattern suggesting improvements in the personnel
management functions.
Resignation may also be
compulsory when an employee is asked to put in his papers if he wants to avoid
termination of services on the ground of gross negligence of duty or some
serious charge against him.
(b) Discharge
A discharge involves
permanent separation of an employee from the organization because of poor
performance, violation of rules or poor code of conduct. A discharge becomes
necessary when
(i)
The business volume is reduced thereby
reducing the employment opportunities in the organization,
(ii) The
employee fails to work according to the requirements of the job, or
(iii) The
employee forfeits his right to a job.
Discharges are
generally made in accordance with the standing orders. The action taken should
be bonafide and nor a punitive measure or a case of victimisation.
(c) Dismissal
When the termination is initiated by the
organization, it is termed as dismissal. A dismissal is the termination of the
services of an employee by way of punishment for some misconduct, or for
prolonged absence from duty. A dismissal is a drastic step. Therefore, it must
be supported with a just and sufficient cause. It is generally done as a last
resort after all attempts at reconciliation have failed. Before an
employee‘sservices are terminated, he should be given an opportunity to explain
his conduct and show cause why he should not be dismissed. The principle of
natural justice should be followed to ensure that the punishment is in
proportion to the offence. As a safeguard, responsibility for dismissal should
not rest on the immediate supervisor. The approval of the next higher authority should generally be taken
and the personnel manager should be consulted. Dismissals can be on the ground
of unsatisfactory performance, misconduct, or want of qualifications for the
job, or excessive absenteeism.
(d)
Retrenchment
Retrenchment is termination of service due to
redundancy. It is a permanent termination of the services of an employee for
economic reasons in a going concern. It must be noted that termination of
services as a punishment given by way of disciplinary action or superannuation
or continued ill health does not constitute retrenchment. The term retrenchment
is applied to continuing operations where a part of the workforce is found to
be superfluous. Retrenchment has many unstabilising effects. It influences the
attitudes and contributions of other employees who become disturbed by rumours,
gossips, resentment and a sense of insecurity about their own fate. The
principle in the procedure of retrenchment is that the last person employed in
each category must be the first person to be retrenched. For this purpose, the
employer prepares a list of all the workers in the category where retrenchment
is contemplated, arranged according to the seniority of service of the
employees in that category. When vacancies arise after retrenchment, the
organization gives an opportunity to the retrenched workers to offer themselves
for re-employment; and they are given preference.
(e)
Layoff
According to Section 2 (KKK) of the Industrial
Disputes Act, a layoff is ―the failure, refusal or inability of an employer, on
account of shortage of coal power or raw materials, or the accumulations of
stocks or breakdown of machinery for any reason, to give employment to a
workman whose name is borne on the muster roll of his individual establishment
and who has not been retrenched‖.According to this definition, a lay off refers
to an indefinite separation of the employee from the pay roll due to factors beyond
the control of the employer. The employee is expected to be called back in the
forseeable future. The laid-off employee is not a discharged employee and is
still carried on the roll as an employee. Lay- off is resorted to by the
employer for factors beyond his control. Such factors could be:
Fluctuations in the market resulting in loss of
sales. Shortage of raw materials or power.
Accumulation of stock. Breakdown of machinery.
Production delays.
f) Golden
Handshake
It is a method of
retrenchment wherein the employees with a certain minimum service can opt for
voluntary retirement and get a fat lumpsum in return. Golden handshake is
usually offered by the Government to reduce the size of the bureaucracy and
close down chronically loss-making public sector enterprises. Many thinkers on
the subject are of the opinion that golden handshake is the fallout of the new
economic policy followed by the Government of India. In the 1992–93 Union
Budget, the Government had provided Rs. 450 crores for the Voluntary Retirement
Scheme (VRS) for its employees.
(g) Retirement
In India, the
retirement age is 58 or 60 years. Some employers may extend the age upward or
downward from this base. For those employees who retire, it is a significant
milestone. Regardless of the age at which retirement occurs, workers may need
preparation through counselling. They should be informed about pension choices
and insurance benefits after retirement. Employees at retiring age often feel
they could continue to work effectively and there is a strong resistance from
many to give up employment. For an organization, in times of staff shortage,
retired employees are of great help.
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