Chapter 13 HRM

Separation

HRM -NIFT A.Rajyalakshmi

Contents Concept of employee separation Types of separation Separation ad termination polices and practices


Concept of Employee SeparationSeparation means a cessation of service with organization for one or the other reason.


Types of Separation/ TurnoverResignation Discharge & dismissal Suspension and retrenchment Lay-off


Resignation:

Resignation is a personal decision, submitted in writing, to leave the employment for reasons determined by the individual resigning.

Employees who resign for any reason should give their supervisors a notice.


InvoluntaryOrganization Initiated


Involuntary - Dischargedisciplinepoor performance

Involuntary - Downsizingpermanent layofftemporary layoffsite or plant closing, relocationredundancy due to a merger or acquisition


LayoffIn the event of State or County requirements, financial hardship, absence of sufficient work, or a change in the organizational structure, the Board may take action to reduce personnel costs. If circumstances require that the staff be reduced in number, affected employees will be given as much notice as possible before this occurs. Action prior to layoff are reduction of hours, reduction of salary, and/or reduction by attrition. Criteria for will be: 1) performance;2)essential nature of position; 3) seniority.


Redundancy occurs when a position is no longer required by the organization.

This can happen at all levels of the company through no fault of their own.

In such cases, the job may be terminated, rather than the employee & he could be offered alternative work & redeployed.

While a redundancy can also involve a termination it is different from other terminations as the employer decides that the work currently being performed by the employee is no longer required.

Redundancy


Redundancy can come from a number of conditions:

changes flowing from the introduction of new systems and technologyor modifications to existing systems and technology restructuring, relocation or re organization changing economic or market conditions.

There are various factors you could look at when selecting employees for redundancyfor example: seniorityi.e., should those most recently employed be the first to be retrenched (last on, first off)? job performancethose with the poorest performance, according to the performance review system, are the first to go. skills and abilities for succession (merit-based) ageas long as its non-discriminatory attendance.


Managing Involuntary Turnover


Managing termination

The Following factors are considered by HR for managing termination

Activities to be carried out within the legislative framework (such as the Anti-discrimination Act) and the values of openness, fairness and equity.

It should be accountable and the link between your organization's strategic goals the HR goals and systems be in line for termination.

The HR management systems and operations for the termination of employees must fit comfortably within the overall management formula.

Reduce the risk of being charged with unfair dismissal.

Define and outline procedures that should be used in managing a separation/termination due to retirement or redundancy.

Also provides the legal requirements for the communication process that should be used.


Policy

1) Regular staff employment termination may be initiated at any time by either the employee or by the organization accordance with the policy.2) Temporary employment is also at will; these employees may be separated from employment for any reason.

3) Employees may be separated from employment voluntarily through resignation or job abandonment or involuntarily through termination, layoff or position elimination.

4) An employee voluntarily separating from employment shall be required to give and fulfill the proper notice period in order to separate in good standing.


Layoff

1) A layoff is a separation from employment when recall of the regular employee is anticipated within one year. Layoff of a regular employee may be necessary because of the following:Lack of work, Lack of funds to continue the position, or Other reasons leading to a reduction in force. Note:In all cases, the date of separation shall be the last day the employee actually worked even when terminal vacation pay may be granted.

2) A minimum notice of one pay period shall be given to an employee prior to layoff.

3) Authority for layoff lies with the Provost or appropriate Executive Vice President after consultation with Employee Relations. Decisions for layoffs shall be based on the following factors:The type of work, e.g., the specific individual job description of the position currently held by each employee; The employees work performance, e.g., consideration given to documentation of performance; and/or The employees length of service.


Position Elimination

1) A regular position may be eliminated due to loss of funds or organizational changes which necessitate the elimination of the position.2) A minimum notice of one pay period shall be given to an employee prior to the separation.3) Authority for position eliminations lies with the Provost or appropriate Executive Vice President after consultation with Employee Relations. Decisions for position eliminations shall be based on the following factors:The type of work, e.g., the specific individual job description of the position currently held by each employee; The employees work performance, e.g., consideration given to documentation of performance; and/or The employees length of service.


Position Elimination

1) The Employee Separation Sheet shall be initiated by the department head as soon as the date of separation is determined. The form shall stateThe actual last day worked; The reason for separation; and Amount of terminal vacation, if any. Note: In all cases, the date of separation shall be the last day the employee actually worked even when terminal vacation pay may be granted.

2) The department shall complete applicable sections of the form at the time the employees gives or is given notice of separation. Any letters of resignation or memorandums shall be submitted with the form.

3) The Employee Separation Sheet shall be discussed with the employee by the supervisor and signed by the supervisor. The employee shall be requested to sign the Employee Separation Sheet. The employee's signature notes knowledge of and not necessarily agreement with the content of the Employee Separation Sheet.

4) The Employee Separation Sheet shall be retained in the department, a copy given to the employee and two copies forwarded to the Human Resources Office of Compensation.


Separation

1) A Payroll Authorization Form (PAR), if needed, or an action in Human Resources and a separation sheet shall be initiated to remove an employee from payroll records and the active personnel files. The separation sheet shall immediately be forwarded to Human Resources on the date of separation. Note: The expiration of a valid payroll date shall stop the employees pay, but does not separate the person from Human Resources files or the payroll department.

2) The Employee Separation Sheet is required when an employee has separated. Failure to process this document as soon as the separation date occurs may result in unnecessary costs (unlawful payment of wages and benefits, unemployment, etc.) to the organization


ToolsEmployment at WillJusticeOutcome fairnessProcedural justiceInteractional justiceProgressive DisciplineAlternative Dispute ResolutionEmployee Assistance ProgramOutplacement Counseling


Principles of JusticeOutcome fairness the judgement that people make with respect to the outcomes received relative to the outcomes received by other people Procedural justice methods used to determine the outcomes receivedInteractional justice interpersonal nature of how the outcomes were implemented


Progressive DisciplineUnofficial verbal warningOfficial written warningSecond official warning, with threat of temporary suspensionTemporary suspensionTermination


Stages in Alternative Dispute ResolutionOpen door policy


Stages in Alternative Dispute ResolutionOpen door policyPeer Review


Stages in Alternative Dispute ResolutionOpen door policyPeer ReviewMediation


Best practice principles

They are as follows: 1 Give as much warning as possible, as early as possible. 2 Consult with the union to establish criteria of selection. 3 In determining selection criteria look at matters such as length of service, efficiency, experience and attendance record. Use staff records where possible, rather than the subjective opinions of managers. 4 Seek a fair selection in accordance with the criteria chosen. 5 Consider the availability of alternative employment.

Other points to consider are: Maintain ongoing communication with employees about redundancy negotiations. They will have questions about the loss of jobs. If the organization's resources allow, consider making the services of an outplacement agency available to assist them. Discuss alternatives to redundancy where possible (i.e., job sharing, reduced working hours, salary reductions, etc.)


A fair go for all

Procedural fairness should be applied to all terminations. Even a genuine redundancy can still be found to be harsh, unjust or unreasonable and therefore be classified as an unfair dismissal.

While the Commission may not reinstate an employee if persuaded that the redundancy was genuine, it could still find that the dismissal was unfair and make an award of compensation if:

the employee (and their union) were not consulted before the retrenchment date or notified as soon as possible once a decision to terminate was made the criteria used to select for redundancy were not fair and reasonable alternative suitable employment was available but not offered to the employee the amount of severance benefits offered was inadequate. Employees should always have the reasons for a redundancy explained to them in advance and be given an opportunity to propose alternatives to the redundancy. For example, some groups of employees have offered to share the load when their organisation was faced with having to reduce staffing numbers; proposals included accepting a pay cut or working shorter hours.


Thank You


Outcome fairness refers to the judgement that people make with respect to the outcomes received relative to the outcomes received by other people with whom they identify.Procedural justice focuses specifically on the methods used to determine the outcomes received.Interactional justice refers to the interpersonal nature of how the outcomes were implemented.

Chapter 13 HRM

Documents

Transcript of Chapter 13 HRM