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6 Top forms of Separation of Employees

Separation of Employees

Separation of employees from an organization. The forms of separation are as follows: 1. Resignation 2. Dismissal or Discharge 3. Death 4. Suspension 5. Retrenchment 6. Lay off

Separation of Employees: Form # 1.


A resignation refers to the termination of employment at the instance of the employees. A resignation may be put voluntarily by the employee. An employee resigns when he secures a better job elsewhere, in the case of a female employee when she marries and has to quit for personal reasons or when an employee suffers from ill health or for any other reasons.

The administration of separation caused by voluntary resignation is very simple because the employee himself is responsible for it. In compulsory resignation, 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 on his part or some serious charge against him.

Separation of Employees: Form # 2.

Dismissal or Discharge:

Dismissal is the termination of the services of an employee as a punitive measure for some misconduct. Discharge also means termination of the service of an employee, but not necessarily as a punishment step. A discharge does not arise from a single irrational act. Dismissal or discharge is a drastic step and should be taken after careful thought.

A dismissal needs to be supported by just and sufficient reasons. Before discharging or dismissing the employee, advance notice of the impending danger must be given and the reasons of discharge must be stated clearly. The employee must be given the opportunity to defend himself.

If the grounds under which the employee has been discharged are not strong enough, there should be a provision for reviewing the case. In any case, the punishment should not be out of proportion to the offence. Such step should be taken as a last resort if all other measures fail in salvaging the employee.

The following reasons may lead to the dismissal of an employee:

1. Unauthorised absenteeism from duty for a long time.

2. Willful violation of rules.

3. False statement of qualification at the time of employment.

4. Dishonesty

5. Drunkenness

6. Carelessness

7. Insubordination

8. Inefficiency

9. Violent and aggressive acts

10. Physical disability

Separation of Employees: Form # 3.


Some employees may die in service. When the death is caused by occupational hazards, the employee gets compensation as per the provisions of the Workmen’s Compensation Act. On compassionate grounds some organisations offer employment to the spouse/child/dependent of the employee who dies in service.

Separation of Employees: Form # 4.


Suspension means prohibiting an employee from attending work and performs normal duties assigned to him. This is a serious punishment and is generally awarded only after a proper enquiry has been conducted. During suspension, the employee receives a subsistence allowance. If the charges against the suspended employee are serious and are proved, suspension may lead to termination also.

Separation of Employees: Form # 5.


Retrenchment, too, results in the separation of an employee from his employer. Retrenchment is generally on account of surplus staff, poor demand for products, general economic slowdown etc. Termination of services on disciplinary grounds, illness, retirement, winding up of a business does not constitute retrenchment.

Retrenchment entitles the employees to compensation which in terms of section 25 (f) of the Industrial Disputes Act 1947, is equivalent to fifteen days average pay for each completed year of continuous service. The principle in the procedure of retrenchment is that the last person employed in each category must be the first person to be retrenched i.e. “last come first go”.

When vacancies arise after retrenchment, the employer gives an opportunity to the retrenched workers to offer themselves for reemployment and they are given preference. Such vacancies are generally notified at least 10 days before they are filled up.

Separation of Employees: Form # 6.

Lay off:

A lay off is a temporary separation of the employee from his employer at the instance of the latter without any prejudice to the former.

Sec. 2 (kkk) of the Industrial Disputes Act, 1947 defines lay off as follows:

“Lay off means the failure, refusal or inability of an employer on account of coal, power or raw-materials or accumulation of stock, breakdown of machinery or by any other reason to give employment to a workman whose name is borne on the muster roll.”

Thus, lay off is resorted to as a result of some bonafide reasons as factors which are beyond the control of the employers. As the employees are laid off at the instance of the employer, they have to be paid compensation for the period they are laid off. Sec. 25 of the Industrial Disputes Act 1947 makes it mandatory on the part of the employer to pay compensation for all the days of the lay off.

The compensation must be equal to half the normal wages the employee would have earned if he had not been laid off. It goes without saying that employees with the shortest period of service to their credit are first laid off and the older employees are retained as long as conditions permit. Competence as the basis for lay off is not possible in unionised companies because of the outright resistance shown by union leaders.

As soon as the layoff is lifted, the employees should be recalled. The seniority system usually specifies that those who were laid off last will be called back first. However, the management may seek to call junior employees whose skills are essential for the resumption of production.

Because of the heavy costs involved in lay off, employers should take every possible step to avoid the causes of lay off. A possible adjustment of placements of workers such as demotions, transfers etc. should be made.


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Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.