Employee Separation

Painful for both the parties…

Separation A voluntary or Involuntary partition with a

person or group or institution/organisation In organisations usually in terms of

Layoffs Resignations Dismissal/ termination Retrenchment VRS

Layoffs Temporary separation due to inability, failure or

refusal of the employer to provide job to the employees. Shortage of raw materials Power shutdown Machinery breakdown

Is usually for a definite period of time Employees are recalled once the normalcy is retained As per the Industrial disputes Act, 1947, the

employees have to be compensated for the days laid-off by paying half the normal wages.

Resignation & DismissalResignation:A voluntary termination of services for various

reasons

Dismissal:Involuntary termination of services for mainly

disciplinary actions like: Excessive absenteeism Serious misconduct Theft of company’s property

Retrenchment It refers to the termination of the services of

employees because of the replacement of labour by machines or the closure of a department, due to continuing lack of demand for the products manufactured.

Retrenchment, entitles the employees to compensation which in terms of section 25(f) of the industrial disputes Act, 1947, is equivalent to 15 days average pay.

No guarantee of the employee being recalled.

VRS Also Golden hand shake Voluntary retirement before the actual age of

retirement