powerpoint presentation on placementseparation.ppt

Placement separation

1. SEPARATION
“Separation of an employee takes place
when his service agreement with the
organization comes to an end & the
employee leaves the organization.”
Thus separation refers to the termination of
professional relationship between the
employer and the employee.
It can be initiated from the both sides.

3. Types of Employee Separation
Resignation
Retirement
Retrenchment
Death
Dismissal
Lay off

4. RESIGNATION
Resignation or quit is a voluntary separation initiated by
the employee himself.
An employee may resigned on grounds of ill health,
marriage, better opportunities etc.
Sometimes, an employer may initiate the Compulsory
Resignation.
In case of voluntary resignation, Exit Interview is
conducted to find out the real cause of resignation so that
the actions may be taken to prevent avoidable
resignations.

5. Main requirements of successful Exit
Interview:
Win the employee’s confidence by assuring
him that whatever he says will be kept strictly
confidential.
Explain to the employee that the purpose of
the interview is to improve the organization's
climate.
It should be conducted by a responsible
officer from the HR department

6. Main requirements of successful Exit
Interview
It should show a great deal of patience & listen
sympathetically.
Try to find out the real cause of resignation .
It should be ensure that the employee has fully
handed over the charge to somebody else.

7. Main requirements of successful Exit
Interview
Assure the employee of the company’s
continuing interest in his welfare.
Present the employee his final pay cheque &
wish him good luck

8. RETIREMENT
After specified age, every employee has to
retire.
Employees who have rendered services to
the organisation for a no. of years expect the
organisation to provide for their future, when
they have retired.

9. Types of Retirement
Compulsory Retirement
An employee must retire after attaining the
specified age.

10. Types
Premature Retirement
An employee may retire before attaining the
specified age due to bad health, physical
disability etc.
He gets the full benefit of retirement provided
the management allows premature retirement

11. Types
Voluntary Retirement / Golden hand Shake
When an organization wants to cut down its
operations or to close forever, it may give an
option to its employees with a certain min service
for voluntary retirement in return for a lump sum
payment or it may be done to reduce its wage bill.

12. VRS
This is applied as a downsizing strategy to cut
the size of wage bill by offering one time
compensation.
This one time compensation can give long term
profit and medium term investment.
It amounts equivalent to 1.5 to 2.5 year’s of
pay. ie. if a company pays 500 crore in VRS,
it saves 200 crore annually in its wage bill.
(40% saving)

13. LAY OFF
Under Sec2 of the Industrial Dispute act,1947 lay
off is defined as “The failure, refusal or inability
of an employer, on account of shortage of
coal, power or raw materials or accumulation
of stocks or breakdown of machinery or by any
other reason, to give employment to a
workman whose name appears on the muster
rolls of his industrial establishment & who has
not been retrenched.”

14. PURPOSE OF LAY OFF
It’s a temporary removal from the payroll of the
people with surplus skills.
The Purpose is to reduce the financial burden
on the organization when the HR can’t be
utilized profitably.
It is resorted in cyclical & seasonal industries.

15. Compensation to laid off employees

Acc to Sec 25(c) of the ID act,1947 a laid off
worker is entitled to compensation equal to
50 % of the basic wages & Dearness
Allowance that would have been payable to
him had he not been laid off.

16. RETRENCHMENT
It means permanent termination of an
employee’s services for economic reasons in
a going concern.
It is termination due to redundancy of
workforce.
It creates a sense of insecurity among the
staff

17. The ID Act,1947 lays down the following
conditions for retrenchment:
The employee must be given one month’s
notice in writing indicating the reasons for
retrenchment.
The employee must be paid compensation
equal to 15 days wages for every completed
year of service.

18. Acc to ID Act:
Notice in the prescribed manner must be
served.
In the absence of any agreement to the
contrary, the worker employed last must be
terminated first.

19. Acc to ID Act:
Retrenched workers must be given
preference in future employment.
Establishments employing 100 or more
workers are required to give 3 months notice.

20. DISMISSAL / DISCHARGE
It refers to terminating the service of an
employee by way of punishment for
misconduct or unsatisfactory performance.
It is a Drastic step and should, therefore, be
resorted to with great care.

21. DISMISSAL / DISCHARGE
Before an employee is discharged, he must
be given the opportunity to explain his
conduct & to show cause why he should not
be dismissed.