SEPERATION Separation means cessation of service with the organisation for one or other reason. The employee may be separated from HR payroll due to: Resignation Discharge and dismissal Suspension and retrenchment Lay off Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

SEPERATION RESIGNATION: Resignation may be put in voluntary by the employees on the ground of health, better opportunities elsewhere or maladjustment with the company policy and officers or for reasons of marriage. DISCHARGE: A discharge involves permanent separation of an employee from the pay roll for violation of company rules or for inadequate reasons. Proper procedure of discharge must be conducted and it should not be an impulsive act. There has to be a written warning for the same along with discharge letter at the time of discharge. Adequate provision should exist for review of discharged employee’s case. Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

SEPERATION DISMISSAL: A dismissal is the termination of services of an employee by the way of punishment for some misconduct or for some unauthorised and prolonged absence from duty. SUSPENSION: It may be awarded during inquiry is being conducted. During suspension employee gets subsistence allowance. RETRENCHMENT: Permanent termination for economic reasons of the organisation. In the Industries Disputes ACT 1947, defines retrenchment as termination by the employer of the services of workmen for any reason. A 3 months’ notice in writing needs to be given to the employee and wages in lieu of such notice. Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

VRS (Voluntary retirement schemes) VRS is legally found to be giving no problem to employers, employees and their unions. The essence of the voluntary retirement scheme which is approved by the government involves voluntary separation of employees who are above age of 40 years or have served company for minimum 10 years. The company may offer various benefit for employees which are tax exempted till 5Lakh. Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

REASONS FOR PROPOSING VRS   REASONS FOR PROPOSING VRS Recession Intense competition resulting in downsizing Changes in technology Joint ventures with foreign establishments Take overs and mergers Business reengineering process Product technology obsolescence Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

VRS MERIT: There is no legal obstacle in implementing the VRS It offers an employee an attractive financial compensation than permitted under law. Voluntary nature of the schemes precludes the need for enforcement which may give rise to conflicts and disputes. It allows flexibility and can be applied only to certain divisions, department where there is excess manpower It allows overall savings in the employee costs thus lowering the overall costs Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

VRS DEMERITS OF VRS To a certain extent it creates fear, a sense of uncertainty among employees Sometimes the severance costs are heavy Trade unions generally protest the operation of such schemes and may cause disturbance in normal operations. Some of the good, capable and competent may apply which may cause embarrassment. Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

VRS GOLDEN HANDSHAKE In practice organisation may have to repeat the scheme if there is no response or poor response to the scheme by the employees. However there are instances when the managements have really made the schemes very attractive by making it Golden Hand Shake. Unit - IV 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA