Separation ch-4.ppt
- 1. SEPARATIONS
- 2. SEPARATION Separation means cessation(end) of service or agreement with the organization for one or other reason. The employee may be separated from the company as a result of:- • Resignation • Discharge & Dismissal • Suspension & Retrenchment • Layoff
- 3. BENEFITS OF EMPLOYEE SEPARATIONS • Reduced labour costs • Replacements of poor performances • Increased innovation • The opportunity for greater diversity
- 4. TYPES OF EMPLOYEE SEPARATIONS Types of employee separations Voluntary Involuntary Quits Retirements Layoffs Discharges Retrenchment
- 5. TYPES OF EMPLOYEE SEPARATIONS • Involuntary separations It occurs when an employer decides to terminate its relationship with an employee. • Voluntary separations A separation that occurs when an employee decides, for personal or professional reasons to end the relationship with the employer.
- 6. RESIGNATION • Resignation may be put in voluntarily by the employees on grounds of health physical disability, better opportunities elsewhere, or maladjustment with company policy and officers, or for reasons of marriage or they may be compulsory when an employee is asked to put in his resignation if he wants to avoid termination of his services on the ground of gross negligence of duty o his part, or some serious charge against him.
- 7. • Discharge: A discharge involves permanent separation of an employee from the pay- roll for violation of company rules or for inadequate performance. It could be a result of • poor performance • Or because of some unacceptable behaviour
- 8. Causes of Discharge: • Frequent Causes: Inefficiency, dishonesty, drunkenness, carelessness, violation of rules. • Infrequent Causes: Accidents, personal conduct, uncleanliness, infraction of rules, destructive negligence, wastefulness, physical unfitness • Other Causes: carelessness, lack of co-operation, laziness, tardiness in starting work, frequent absences without leave, dishonesty, lack of specific skill, preventing promotion, adverse attitude towards the organization.
- 9. PROCEDURE OF DISCHARGE: • Permanent records of all merit ratings made by supervisors. • A memorandum bearing on the efforts made by foreman to help the defendants to overcome his weakness. • A copy of warning that had been sent him. • A letter of discharge, especially if letter states cause of discharge.
- 10. DISMISSAL: • Similar to discharge, it is also process of terminating the service of an employee due to any serious misconduct. • Dismissal is the termination of the services of an employee by way of punishment for some misconduct and prolonged absence from duty. • Misconduct refers to willful violation of organization rules and norms. • The main causes of dismissal are: indiscipline; insubordination and dishonesty
- 11. The following reasons lead to the dismissal of an employee- • Excessive absenteeism • Serious misconduct • False statement of qualification • Theft of company’s property
- 12. • Retrenchment means “discharge of surplus labour or staff” by the employer on account of long period of layoff, or rationalization or improved machinery or automation of machines or similar other reasons. • The Industrial Dispute Act, 1947 defines retrenchment as the “termination by the employer of the services of workmen for any reasons.
- 13. Worker who has completed one year of service and continuing in service must be retrenched by the owner by following rules. • One month notice of retrenchment should be given to the worker by the owner. • Notice should include the reasons for the retrenchment of the concerned worker.
- 14. RETRENCHMENT COMPENSATION • Retrenchment worker can claim compensation from the worker under following procedure 15 days of salary drawn for every year of service completed. • E.g. last drawn salary of worker=1000, no of years of service=5 yrs • So 15 days salary is 5000( half of the amount) x no of service yrs 5= 25000 is the retrenchment compensation.
- 15. • Layoff means the “failure”, “refusal" or “inability” on the part of any employer to give employment to any number of workmen on account of shortage of raw material, accumulation of stock, breakdown of machinery or for any other reason.
- 16. • The employer is supposed to give notice of lay off workers within 7 days of such lay off. • Employer has to pay 50% of the basic wage to the employees during the layoff period • Section 25-C of Industrial Disputes Act (IDA) 1947, does not confer the right on employers to layoff workers for whatever reasons they deem fit • According to section 25-M of IDA , unless the layoff is due to shortage of power or natural calamity ,no work men can be laid off without the prior permission of the labour commissioner
- 17. • Maximum period of layoff is 45 days. After 45 days of lay off, management can retrench worker. • If employer offers alternative employment , it will not be consider a layoff even if the worker does not opt for it. • LIFO (last in first out) method should be followed while retrenchment of workers, a worker who has joined last shall be retrenched first. Juniors should be retrenched first. • And when they are recalled the principle is LOFI (last out first in) .
- 18. IMPLEMENTING A LAYOFF • Notifying employees ( before 7 days ) • Developing layoff criteria • Communicating to laid off employees • Maintaining security • Reassuring survivors of layoff