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‘s services 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 140
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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