Employee Separations,

Downsizing, and Outplacement

Learning Objectives:
• Understand employee separations;
• Gain mastery in identifying types of employee
separations;
• Have familiarity with managing early retirements;
• Learn practices for managing layoffs; and
• Recognize the role of outplacement.
 What is Separation of Employment

- Employee separation” or “separation of employment” refers to

the process of managing the end of the employment cycle.
- Separation is a situation where the service contract of an
employee with his employer comes to an end.
- In other words, employer and employee part with each other.
An employee may move out of the organization for a variety of
reasons like retirement, resignation, better prospects
elsewhere etc. Employer may terminate the services of
employees.
- Separation happens on many grounds such as lay-off,
resignation, dismissal or discharge, retrenchment, voluntary
retirement schemes, transfer, and attrition.
Types of employee separation
Lay-Off
- A lay-off cannot be avoided in certain situations. A lay-
off is a temporary separation of an employee from his/her
employer at the instance of the latter, without any preju-
dice to the former. Lay-off is initiated as the failure,
refusal, or inability of an employer to continue employ-
ment of a worker whose name is in the rolls but who has
not been retrenched.
Types of employee separation
Resignation
- Resignation or early retirement refers to
termination based on the employee s discretion to
discontinue employment. Generally, an employee
resigns on securing better employment elsewhere.
Types of employee separation
Dismissal or Discharge
- Dismissal or discharge is a drastic step initiated by the
employer; this step should be taken after careful analysis
and thought. A dismissal needs to be supported by
sufficient reasons and documentary evidences. Initially,
departmental enquiry is instituted by engaging an
inquiry officer and a presenting officer.
Types of employee separation
Retrenchment
- Retrenchment refers to an employer giving a termination to a workman for
any reason whatsoever, otherwise than a punishment inflicted by way of
disciplinary action.
It is important to remember that it does not include the following:
a. Voluntary retirement of the workman
b. Retirement of the workman on reaching the age of superannuation
c. Termination of the service of the workman as a result of non-renewal of the
contract of employment between the employer and the workman
d. Termination of the service of a workman on the ground of continued ill-
health.
Types of employee separation
Retirement
It is of two types namely – compulsory retirement and voluntary
retirement.
a. Retirement by superannuation – Where an employee retires on
attaining the age prescribed for retirement, it is known as retirement
by superannuation.
b. Voluntary retirement – Employees are given option to retire even
before they reach superannuation.
Types of employee separation
Transfer
- In companies, employees are transferred from one
department to another of the same unit, or from one unit
to another unit. Though transfers are usually ordered
without any change in the job responsibilities or
remuneration, sometimes they may also involve a change
in the job role. In the latter case, they are often
accompanied by a change in the place of the job.
- A transfer is different from a promotion which involves a
significant change in responsibility, status, and income.
Benefits of Employee Separation
• Reduced labor costs—The will affect the bottom line. Not only are the
salary savings earned, but also all costs associated with providing
benefits and other processing of that employee.
• Replacement of poor performers—An integral part of management is
identifying poor performers. If poor-performing employees do not turn
around performance, it may be best to terminate.
• Increased innovation—Separations create advancement opportunities
for high-performing individuals and also open up entry-level positions.
New hires can fill those open positions and offer a fresh perspective.
• Opportunity for diversity—Separations can offer opportunities to hire
diverse employees with varied backgrounds, knowledge, skills, and
abilities.
 Basic Labor Law
Affecting
Employer- Employee Relationship
Basic Labor Laws
The State shall protect labor, promote full employment, provide equal work
opportunity regardless of gender, race, or creed; and regulate employee-
employer relations.

Male and female employees are entitled to equal compensation for work of
equal value and to equal access to promotion and training opportunities.
Discrimination against female employees is unlawful. It is also unlawful for
an employer to require a condition of employment that a woman employee
shall not get married, or to stipulate expressly or tacitly that a woman
employee shall be deemed dismissed upon marriage.

The minimum age of employment is 18 years for hazardous jobs, and 15

years for non-hazardous jobs. But a child below 15 maybe employed by
parents or guardians in a non-hazardous job if the employment does not
interfere with the child's schooling.
1. Security of Tenure. Every employee shall be assured security of
tenure. No employee can be dismissed from work except for a just or
authorized cause, and only after due process.
Just Cause refers to any wrongdoing committed by an employee
including:
1.serious misconduct
2.willful disobedience of employers' lawful orders connected with work
3.gross and habitual neglect of duty
4.fraud or willful breach of trust
5.commission of crime or offense against the employer, employer's family
member/s or representative
6.other analogous cases
Authorized Cause refers to an economic circumstance not due to the
employee's fault, including:
1.the introduction of labor-saving devices
2.redundancy
3.retrenchment to prevent losses
4.closure or cessation of business
2. Work Days and Work Hours . Work Day refers to any day during
which an employee is regularly required to work. Hours of Work refer to all
the time an employee renders actual work, or is required to be on duty or to
be at a prescribed workplace. The normal hours of work in a day is 8 hours.
This includes breaks or rest period of less than one hour, but excludes meal
periods, which shall not be less than one hour. An employee must be paid
his or her wages for all hours worked. If all or any part of his or her regular
work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee shall
be entitled to a night shift pay in addition to his or her pay for regular work
hours. If he or she works for more than 8 hours in one day, he or she shall be
entitled to overtime pay.
3. Weekly Rest Day . A day-off of 24 consecutive hours after 6
days of work should be scheduled by the employer upon
consultation with the workers.
4. Wage and Wage-Related Benefits. Wage is the amount paid to an
employee in exchange for a task, piece of work, or service rendered to an
employer. This includes overtime, night differential, rest day, holiday and
13th month pay. It also includes the fair and reasonable value of board,
lodging and other facilities customarily furnished by the employer. Wage
may be fixed for a given period, as when it is computed hourly, daily or
monthly. It may also be fixed for a specified task or result. If wage is for a
fixed period, the minimum wage for a regular 8-hour workday shall not be
lower than the minimum daily wage applicable to the place of work as
determined by the Regional Tripartite Wage and Productivity Board
having jurisdiction over workplace.
5. Payment of Wages. Wages shall be paid in cash, legal
tender at or near the place of work. Payment may be made
through a bank upon written petition of majority of the
workers in establishments with 25 or more employees and
within one (1) kilometer radius to a bank. Payment shall be
made directly to the employees. Wages shall be given not less
than once every two (2) weeks or twice within a month at
intervals not exceeding 16 days.
6. Employment of Women Nightwork prohibition unless allowed by the Rules:
•in industrial undertakings from 10PM to 6AM
•in commercial/non-industrial undertakings from 12MN to 6AM
•in agricultural undertakings, at night time unless given not less than 9
consecutive hours of rest
Welfare facilities must be installed at the workplace such as seats, separate
toilet rooms, lavatories, and dressing rooms. Prohibition against discrimination
with respect to pay (i.e. equal pay for work of equal value), promotion, training
opportunities, study and scholarship grants.
7. Employment of Children. Minimum employable age is
15 years. A worker below 15 years of age should be directly
under the sole responsibility of parents or guardians; work
does not interfere with child's schooling/normal
development. No person below 18 years of age can be
employed in a hazardous or deleterious undertaking.
8. Safe Working Conditions. Employers must provide workers with every kind of
on-the-job protection against injury, sickness or death through safe and healthful
working conditions. Jobs may be hazardous or highly hazardous. Hazardous jobs are
those which expose the employee to dangerous environment elements, including
contaminants, radiation, fire, poisonous substances, biological agents and explosives,
or dangerous processes or equipment including construction, mining, quarrying,
blasting, stevedoring, mechanized farming and operating heavy equipment. If you
need further information on the provisions of the OSH Standards.
9. Right to Self-Organization and Collective Bargaining. The right
to self-organization is the right of every worker, free of any interference
from the employer or from government, to form or join any legitimate
worker's organization, association or union of his or her own choice.
Except those classified as managerial or confidential employees, all
employees may form or join unions for purposes of collective bargaining
and other legitimate concerted activities. An employee is eligible for
membership in an appropriate union on the first day of his or her
employment.
Human Resources Process
HR process
• Recruitment Process
• Selection Process
• Orientation Process
• Training Process
• Employee Grievances, Moral and Motivation
Recruitment Process
1. Identifying the HR Requirement

2. Identifying possible sources of HR Supply

3. Communicating the Information

4. Receiving Application
1. Identifying the HR Requirement

• Number of positions to be filled

• Duties and responsibilities to be performed
• Qualification and experience required
 2. Identifying possible sources of HR Supply
Internal Sources
Internal sources of recruitment refer to hiring employees within
the organization through −
• Promotions
• Transfers
• Former Employees
• Internal Advertisements (Job Posting)
• Employee Referrals
• Previous Applicants
Identifying possible sources of HR Supply
External Sources
External sources of recruitment refer to hiring employees outside the
organization through −
• Direct Recruitment
• Employment Exchanges
• Employment Agencies
• Advertisements
• Professional Associations
• Campus Recruitment
• Word of Mouth
Selection Process
Step 1. Screening of Applicants
Step 2. Preliminary Interview
Step 3. Employment Tests
a) Intelligence Tests
b) Aptitude Tests
c) Proficiency Tests
Step 4. Selection Interview
Step 5. Checking of References
Step 6. Medical Examination
Step 7. Final Selection/Hiring
Orientation Process
• Orientation is the process of providing basic information about the
hospitality organization that must be known by all staff members in
every department.
• Discussions about basic policies and procedures help new staff
members learn about matters of personal importance such as their
employer’s expectations and job-related benefits for which they
qualify.
Goals of Orientation Programs
• It provides an overview of the organization
• It indicates the new staff member’s role
• It explains policies, rules, and other information
• It outlines specific expectations
• It provides details about employee benefits
• It motivates new staff members
How should the job orientation process be
administered?
• Provide a tour of the workplace.
• Review company policies.
• Wrap up administrative details.
• Introduce the new employee(s) to co-workers.
• Explain company history and values.
• Set up an office or workspace.
• Make time for on-the-job training and mentoring.
Training Process
The Training Process comprises of a series of steps that
needs to be followed systematically to have an efficient
training programed. The Training is a systematic activity
performed to modify the skills, attitudes and the behavior of
an employee to perform a particular job.
Training Benefits
• Improved performance
• Reduced operating costs
• More satisfied guests
• Fewer operating problems
• Lower employee turnover rates
• Higher levels of work quality
• Easier to recruit new staff
• Greater profits
• More professional staff
Employee Grievances, Moral and
Motivation
Grievance is a disagreement
between an employee and the
employer on the terms or
conditions of employment. The
causes for a grievance may include,
but are not limited to, complaints
concerning wages, hours of work,
working conditions, performance
evaluations, job assignments or the
interpretation or application of a
rule, regulation or policy.
Causes of Grievances
1. Differing application and interpretation of the collective bargaining
agreement (CBA).
2. Perceived unfair treatment of the employee by the supervisor or
ineffective or inadequate supervision.
3. Unfair labor practices of the employers.
4. Violation by management of the labor agreement or violation of
the law concerning the workers.
5. Grievances inspired by the union leaders.
6. Lack of a clear-cut company labor policy.