Separations

19bcom15 Gunjan
19bcom20 Khushi
 Topics.
• What is separation?
• Benefits of separations
• Types of separations
1. Voluntary
2. Involuntary
• Subtypes of separations
• Conclusion
 Separation
• Employ separation is the process of efficiently and fairly terminating
workers.
• Separation means cessation of service or agreement with the organisation
for one or other reason.
 Benefits of employee separation
• Reduced labour costs
• Replacement of poor performance
• Increased innovation
 Types of employee separation
1. Involuntary separation
It occurs when an employee decides to terminate its relationship with an employee due
to
• Economic necessity
• A poor fit between the employee and the organization
2. Voluntary separation
A sepration that occurs when an employee decides for personal or professional relation
to end the relation with the employee.
 Voluntary separations.
There are 2 types of voluntary separations.
1. Quit
2. VRS
 Involuntary separation
• There are 5 types of involuntary separations.
1. Retirement
2. Dismissal
3. Layoff
4. Retrenchment
5. Rightsizing
 Retirement
• A point where the person stops employment completely.
• A person may be semi retire by reducing the working hours.
• 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 leaves the organization after retirement , he or she
carries several benefits with himself or herself. Like : monthly pension.
•
 Dismissal
• Where the employer chooses to require the employee to leave ,generally for a reason which is fault of an
employee.
• Usually, this process is perceived negatively by employees. An employer uses his right to terminate the
contract of an employment. There can be many reasons for an employer to terminate the contract of
employment but some of the common reasons are:
• Non-Performance
• Indiscipline
• Misconduct
• Insubordination
• Theft and etc.
 Layoff
• It is the temporary suspension or permanent termination of employment of
an employee or group of employees for business reasons,such as :
• When certain positions of empolyes are no longer necessary
• when a business slows down occurs
• the reduction in the demand for particular skills
• lagging sales or a depressed economy.
 Retrenchment
Retrenchment means :(permanent removal of employee)
It means discharge of surplus labour or staff by the employer on account of
long period of layoff which is permanent termination of the services of an
employee for economic reasons in a going concern like: rationalization .
An employee to be retrenched is required to be given three months notice
before his retrenchment and gratuity payment from his employer
 Rightsizing

• The process of a reorganization or restrcutting their business by cost-cutting

reduction of workforce, or reorganization of upper’level management
• rightsizing is just adjusting the size of your workforce to get it to the
correct size. It is possible that one could rightsize by adding workers.
• The goal is to get the company molded properly and achieve the maximum
profit.
 Conclusion
• It is our view that the employee separation must be handled in a professional
and mature manner and though attrition is a fact that concerns everyone in the
industry, once an employee decides to leave, the separation must be as
smooth as possible.

(( Attrition meaning :the process of reducing something's streNgth or

effectiveness through sustained attack or pressure.))
Thankyou