SEPARATION PROCESS

Human resource management

What is Separations ? Cost of employee separations. Benefits of employee separations. Types of employee separations. Rehabilitation of surplus employees.

Separation

Separation means cessation of service or agreement with the organization for one or other reason. The employee may be separated from the payroll of the company as a result of

Resignation Discharge & Dismissal Suspension & Retrenchment Layoff

Human Resource Replacement Costs

Costs Recruitment Cost Selection Cost Training Cost Separation Cost

Advertising

Interviewing

Orientation Direct Training Cost Trainers Time Less Productivity During Training

Separation Pay

Campus Visit

Testing

Benefits Unemployment Insurance Cost Exit Interview

Recruiter Time

Reference Checks

Search Firm Fees

Relocation

Outplacement

Vacant Position

Benefits of employee separations

Reduced labour costs Replacements of poor performances Increased innovation The opportunity for greater diversity

Types of employee separations

Types of employee separations Voluntary Involuntary

Quits
Retirements

Layoffs
Discharges Retrenchment

Involuntary separations
It occurs when an employer decides to terminate its relationship with an employee due to

Economic necessity or A poor fit between the employee and the organization.

Voluntary separations
A separation that occurs when an employee decides, for personal or professional reasons to end the relationship with the employer.

Types Of Voluntary Separations

There are two types of voluntary separations:

Quits Retirement

Types Of Involuntary Separation

There are three types of involuntary separations

Discharge Layoff Retrenchment

Discharge takes place when mgmt decides that there is a poor fit between an employee and the organization. It could be a result of

poor performance Or because of some unacceptable behavior

Layoff means the failure, refusal" or inability on the part of any employer to give employment to any number of workmen on account of shortage of raw material, accumulation of stock, breakdown of machinery or for any other reason.

It is the process of terminating the service of an employee due to any serious misconduct It is a permanent separation of an employee from the payroll for violation of company rules or for inadequate performance. The most stressful and distasteful separation method of employee is discharge. The employee is deemed to be fundamentally unsatisfactory in terms of performance and / or attitude. Discharge for cause makes the ex-employee ineligible for unemployment compensation For non-unionized personnel, only laws and courts can serve to restrict the power of the private employer in discharging the personnel Discharges because of union activity, sex, age, color, religion, race, and nationality are legally prohibited Discharge because of disloyalty, and the like are still legal Copyright challenged Houghton Mifflin until in court in specific case. Company. All rights reserved. 7 - 11

2. Discharge:

CAUSES OF DISCHARGE:
a) FREQUENT CAUSES:

Inefficiency, dishonesty, drunkenness, carelessness.

b) INFREQUENT CAUSES:

Accidents, insubordination, personal conduct, un-cleanliness, infraction of rules, negligence.

Laziness, lack of cooperation.

c) OTHERS:

PROCEDURE OF DISCHARGE:
Permanent records of all merit ratings made by supervisors. A memorandum bearing on the efforts made by foreman to help the defendants to overcome his weakness. A copy of warning that had been sent him. A letter of discharge, especially if letter states cause of discharge.

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3. Dismissal:

Similar to discharge, it is also process of terminating the service of an employee due to any serious misconduct but its action is more severe than discharge Dismissal is the termination of the services of an employee by way of punishment for some misconduct and prolonged absence from duty. Misconduct refers to willful violation of organization rules and norms. The main causes of dismissal are: indiscipline; insubordination and dishonesty
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The following reasons lead to the dismissal of an employee-

Excessive absenteeism Serious misconduct False statement of qualification Theft of companys property

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Implementing A Layoff

Notifying employees ( before 7 days ) Developing layoff criteria Communicating to laid off employees Coordinating media relations Maintaining security Reassuring survivors of layoff

Layoff:

P.Subba Rao , p. 732

It is the temporary reduction in the workforce due to the inability of the employer to provide work as a result of the shortage of coal, power, raw material, machinery breakdown or a natural calamity. Employer has to pay 50% of the basic wage to the employees during the layoff period Section 25-C of Industrial Disputes Act (IDA) 1947, does not confer the right on employers to layoff workers for whatever reasons they deem fit According to section 25-M of IDA , unless the layoff is due to shortage of power or natural calamity ,no work men can be laid off without the prior permission of the labour commissioner Maximum period of layoff is 45 days If employer offers alternative employment , it will not be consider a layoff even if the worker does not opt for it The penalty stipulated for not complying with the provisions of the IDA : imprisonment for period of up to one month or a fine Copyright Houghton Mifflin up to Rs. 1000 or both

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Impact Of Layoff

Effects the morale of remaining employees Regions economic vitality Entire community suffers Investors are affected companys image Difficult to attract & recruit highly skilled employees

Alternatives to layoffs

Employment policies

Reduction through attrition Hiring freeze

Transfer Relocation Job transfer

Changes in job design

Training

Outplacement

It is an HR program created to help separated employees deal with the emotional stress of job loss.

Goals of outplacement

Reducing the morale problem of employees who are about to be laid off. Minimizing the amount of litigation initiated by separated employees Assisting separated employees in finding new jobs

Retrenchment means discharge of surplus labour or staff by the employer on account of long period of layoff, or rationalization or improved machinery or automation of machines or similar other reasons.

6.2 Kinds of Retirement

WHAT IS RETIRMENT?
It is the process of leaving the organization permanently on the ground of attaining the age of superannuation or voluntarily. Retirement has been characterized by some as a role less role

Kinds of Retirement 1. Compulsory retirement: 2. Forced Retirement:

Employee must retire compulsory on attaining on specific age. Central government Offices, the age is 58; In private firm, employees may be given extension up till they are suitable to do work. If employee found on guilty either in court of law or violated conditions of organization. He may force to retire from the service without any benefit.

3. Premature Retirement:
If an employee become disabled in an accident , or due to some disease , he may given option of retiring by management

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1. RESIGNATION:

When an employee himself leave the organization or initiates a separation from the organization it is termed as resignation. Although some resignation may permit an organization to rectify mistakes in procurement of personnel. Resignation may be put in voluntarily by the employees on grounds of personal problem, health, family etc.

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