There are various types of separation in HRM. The process of separation of employees means the employee getting seperated from the organisation in any mode. He can get seperated from the organisation in various ways. Let us discuss each type of separation in detail
SUPERANNUATION
Superannuation means attainment of such age by t he employee as is fixed in the contract or conditions of service as the age on attainment of which he has to leave the employment where there is no such provision, then attainment of the age of 58 years by the employee.
RETIREMENT
Termination of a service of an employee other than on superannuation.
Types of retirement
- 1. Forced Retirement
- 2. Premature Retirement
- 3. Compulsory Retirement
- 4. Voluntary Retirement
1.FORCED RETIREMENT
Employee violate rules of organisation as mentioned in the standing orders. • such employees are forced to retire from their services before the age of superannuation.
2.PREMATURE RETIREMENT
- Employee become disable due to disease, illness, accident.
- Due to personal problem – employee does not perform job.
- Management may give him the option of retirement.
- Also, some organisations give this option when employee complete 15-20 years of service
3. COMPULSORY RETIREMENT
This include the inclusions of terms of termination of employment in the contract. E.g. Defence – after 15 years of service, person has s to retire from his post.
4.VOLUNTARY RETIREMENT
GOLDEN HANDSHAKE SCHEME • Voluntary separation of an employee completing criteria 1. Employee age – 40+ yrs 2. Employee service – min 10 yrs • Company has to take prior permission of government before offering GHS. • Management has right to accept or reject the application for VRS. • Reasons for VRS 1. Reduce burden of unproductive employees. 2. Downsizing. 3. Change in technology 4. Recession 5. Takeover, Merger, Joint Venture.
RESIGNATION : Employee’s initiative to leave the job.
• Types of resignation:
1. Voluntary Resignation • An employee may decide to quit an organisation voluntarily on personal or professional grounds such as getting a better job, changing careers, wanting to spend more time with family, or leisure activities. Alternatively, reason could be employee’s displeasure with the current job, pay, working conditions or colleagues.
2. Non-Voluntary Resignation • Employee is forced to resign from his job due to negligence of duties, misuse of organisation’s resources, etc. If employee refuses to quit, he may face disciplinary action.
• Advantage to employee – no legal action, no bad image among people.
DISCHARGE • Management initiative to separate an employee, but not necessarily a punishment. • Reasons for discharge: 1. Alcoholism 2. Wilful violation of rules 3. Carelessness 4. Physical disability 5. Dishonesty 6. Violent acts 7. Inefficiency 8. Unauthorised absence from duty.
Discharge should be undertaken in exceptional cases. Employee should be given a opportunity to defend himself. Employee is entitled to – Contributions to PF, Bonus, Gratuity. Final separation of an employee.
DISMISSAL
Employee separation is result of punishment for a misconduct. Extreme action. End of employee-employer relationship. Employee is given an opportunity to defend himself. Employee has less opportunity to get work elsewhere. Contributions to PF, Bonus, Gratuity are withheld by the employer –used to make up loses. Employee can be reinstated and get the salary arrears if he is not found guilty.
SUSPENSION
Prohibiting an employee from attending work and to perform normal duties assigned to him. Employee is suspended only after proper enquiry. Suspension is only for investigation period. Obvious motive is to prevent suspended employee from interfering the concerned matter, from making any changes in the document or influencing the witness.
LAY-OFF
Lay-off means the failure, refusal or inability of an employer on account of 1. shortage of coal, power or raw-material or 2. accumulation of stocks, 3. breakdown of machinery or 4. natural calamity any other reason to give employment to a workmen whose name is borne on the muster rolls and who has not been retrenched.
• Lay-off is temporary. • Employer-employee relationship does not come to an end. • Lay-off compensation is paid to employees.