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'Separation means cessation of service agreement with the organization.' Discuss the different ways of separation in light of this statement.

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'Separation means cessation of service agreement with the organization.'

The different ways of employee separations are:

Involuntary separations
It occurs when an employer decides to terminate its relationship with an employee due to
  • Economic necessity or
  • A poor fit between the employee and the organization.
There are three types of involuntary separations:
  1. Discharge - Discharge takes place when management decides that there is a poor fit between an employee and the organization. It could be a result of poor performance or because of some unacceptable behavior.
  2. Layoff - 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.
  3. Retrenchment - 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.
Voluntary separations
A separation that occurs when an employee decides, for personal or professional reasons to end the relationship with the employer.

There are two types of voluntary separations:
  1. Resignation - Resignation or quit is a voluntary separation initiated by the employee. It may be on grounds of health, marriage, better opportunities elsewhere or may be compulsory when an employee is asked to resign to avoid termination.
  2. Retirement - An act of retiring, or the state of being retired; withdrawal; seclusion; as, the retirement of an officer; the portion of one's life after retiring from one's career.
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