Employee separation is a sensitive process within organizations, involving both voluntary and involuntary separations such as resignations, layoffs, and retirements. The document outlines various types of separations, reasons behind them, and necessary procedures for handling them, emphasizing the importance of discretion and empathy during the process. It also highlights the need for clear policies regarding retirement and retrenchment, alongside legal requirements mandated by labor laws.

1. EMPLOYEE SEPARATION
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2. INTRODUCTION
• Employee separation is a sensitive issue for any organization.
• employee leaves the organization after several years of service.
• The separation occurs when the employment relationship is ended.
• The employer can initiate separation decisions as discharges and layoffs,
but the employees as quits or retirements can also initiate separation.
• the permanent separation of employees from an organization requires
discretion, empathy and a great deal of planning.

3. DEFINITION
According to Yoder, separation is a negative
recruitment. It may be In the form of resignation,
dismissal or discharge, suspension, retrenchment or
lay-off.

4. REASONS FOR SEPARATION
• Voluntary Separation
• Professional reasons
• Personal reasons
• Involuntary Separation
• Health problems
• Behavioral problems .
• Organizational problems

5. TYPES OF EMPLOYEE SEPARATIONS
Voluntary Separations
• Quits
• Voluntary Retirements System
Involuntary Separations
• Dismissal / Termination
• Retrenchments
• Retirement
• Layoff
• Death

6. VOLUNTARY RETIREMENT
• When organizations give option to its employees to retire even
before his or her retirement date, it is called ‘voluntary
retirement
• VRS applies to an employee who has completed 10 years of
service or is above 40 years of age.
• Benefits under this scheme:-
– employee will get the provident fund and gratuity dues.
– The VRS originally granted tax-exemption for amount up
to Rs. 5 lakhs received by public sector employee as his
severance pay- package

7. QUIT
• when the employee himself initiates the
separation then it is termed as resignation or quit .
• A voluntary resignation is when an employee
himself/herself decides to resign on the grounds
of ill health, marriage, better job prospects in
other organizations, etc

8. an employee resigns for:
1) Better compensation and benefits
2) Higher position / level
3) Challenging role
4) To move from an unknown or lowly branded
company to a highly branded and reputed company
(Top 10 or 25 companies in the world etc.)
5) For foreign or international assignments

9. LAY OFF
• lay off is generally done to reduce the financial
burden of the organization by temporary
removing the surplus employees.
• This is done due to inability of the employee to
recruit them due to shortage of sufficient
resources.
• Lay off results in a great loss to the organization
as they had to suffer all the expenses of selection,
placement and training.

10. Implementing A Lay Off
– The notification to the employees
– Development of the criteria of layoff
– The communication method with employees that are laid-
off
– Coordination with the media relations
– Maintenance of the security in the organization
– Reassurance to the employees who are survivors of the
layoff.

11. Dismissal
• dismissal or termination means separating the employee
from work due to unsatisfactory performance where
• The employee fails to perform his duties well and he is
not properly skilled to perform his job or due to
violation of organizational rules it means indiscipline,
dishonesty.
• What ever is the cause of dismissal but it should be
done at the last stage.

12. 1) Non-Performance
2) Indiscipline
3) Misconduct
4) Insubordination
5) Theft and etc.

13. RETIREMENT
• There must be clear rules of retirement there may be
compulsory retirement where an employee has to retire after
attaining a particular age.
• Retirements occur when employees reach the end of their
careers
• In some States it is 58 years and in Central Government it is
60.
• When the employee superannuates and leaves the
organization, he or she carries several benefits with himself or
herself.

14. RETRENCHMENTS
• Permanent removal of employee by economic reason is going
concern
• employee do not meet their performance requirements, or are
found wanting in their conduct or are incapable of working in
teams.
• The Industrial Disputes Act, 1947 makes it obligatory for
organizations employing 100 or more employees to give three
months’ notice to the employee to be retrenched and also seek
prior approval of the Government.

15. • the workman has been given one month' s notice in writing
indicating the reasons for retrenchment and the period of notice has
expired, or the workman has been paid in lieu of such notice, wages
for the period of the notice:
• the workman has been paid, at the time of retrenchment,
compensation which shall be equivalent to fifteen days' average pay
for every completed year of continuous service or any part thereof in
excess of six months
• notice in the prescribed manner is served on the appropriate
Government or such authority as may be specified by the
appropriate Government by notification in the Official Gazette.

16. DEATH
• Loss of life of an employee
• Death comes without call. Some employees may die in service
before attaining the age of superannuation.
• When death occurs due to occupational hazards, the employee
gets compensation as per the provisions of Workmen’s
Compensation Act, 1923
• Some organizations have provisions to give employment to the
spouse/child or dependent of an employee who dies in service

17. CONCLUSION
• Employee Separation is one of the very important and
crucial function
• The function of separation can be as complex and
challenging as any of the preceding five functions,
which served to select and merge the employee with the
organization.
• Employee separation needs to be handle with
sensitivity, discretion and speed so that it may happen
smoothly and on good times.