Meaning of separation:
Separation of an employee exists when the service of an employee comes to an end because of one reason or other. Separation arises due to resignation; lay off, dismissal and retirement.
Types of separation:
i) Resignation: when the employee himself initiates the separation then it is termed as separation. There are some resignation which are avoidable and others which are unavoidable. It is the responsibility of the management to look out the real reason of the resignation. In such a cases the exit interview is better to conduct to find out the reason of resignation.
ii) Lay off: lay off is generally done to reduce the financial burden of the organization by temporary removing the surplus employees. This is done due to inability of the employee to recruit them due to shortage of sufficient resources. Lay off results in a great loss to the organization as they had to suffer all the expenses of selection, placement and training.
iii) Dismissal: dismissal or discharge means separating the employee from the payroll due to unsatisfactory performance where the employee fails to perform his duties well and he is not properly skilled to perform his job or due to violation of organizational rules it means indiscipline, dishonesty. What ever is the cause of dismissal but it should be done at the last stage.
iv) Retirement: number of separation in the organization happen due to retirement. There must be clear rules of retirement there may be compulsory retirement where an employee has to retire after attaining a particular age. Forced retirement means when a person is found guilty in the court of law or breaks any service agreement then has to retire forcibly irrespective of his age. Premature retirement means that the employee becomes disable to perform the job in that case he may be given the option to take retirement before his retirement age.
This is the concept of separation and its types.