6 Important Forms of separation of an employee

Separation is a situation when the service agreement of an employee with his/her organisation comes to an end and employee leaves the organization. In other words, separation is a decision that the individual and organisation part from each other.

Separation means cessation of service with the organisation for one to other reason. 

Forms of Separation

The employee may be separated from the pay roll of a company as a result of :-

  • Resignation
  • Discharge
  • Dismissal
  • Suspension
  • Retrunchment
  • Lay-off

1. Resignation

Resignation may be put in voluntarily by the employees on grounds of health physical disability, better opportunities elsewhere, or maladjustment with company policy and officers, or for reasons of marriage or they may be compulsory.

When 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.

2. Discharge

A discharge involves permanent separation of an employee from the pay-roll for violation of company rules or for inadequate performance.

A discharge becomes necessary belongs in the three points :

  • When the volume of business does not justify the continuing employment of the persons involved.
  • When a person fails to work according to the requirements of the job either because of incapacity or because he has deliberately slowed down on work, or because there is no suitable place where he can be transferred.
  • When an individual forfeits his rights to a job because of his violation of a basic policy often involves the safety of others, the morale and discipline of a group.

Causes of Discharge

A discharge seldom arises from a single impulsive as. Many causes may account for it.

Some of these are:

  • Frequent causes
  • Infrequent causes
  • Other causes

Frequent causes

Inefficiency, dishonestly, drunkenness, carelessness or indifference, violation of rules.

Infrequent causes

Accidents, insubordination, personal conduct, uncleanliness, infraction of rules, destructive negligence, wastefulness, and physical unfitness.

Other causes

Carelessness, lack of co-operation, laziness, tardiness in starting work, frequent absences without leave, dishonestly, lack of specific skill, preventing promotion, adverse attitude towards the organisation.

3. Dismissal

A dismissal is the termination of the services of an employee by way of punishment for some misconduct, or for unauthorized and prolonged absence from duty.

Before his services are terminated, an employee is given an opportunity to explain his conduct and to show cause why he should not be dismissed.

The general rule is that in this process, there should be no violation of what is known as the principle of natural justice, which ensures that punishment is not out of all proportion to the offence.

4. Suspension

This is a serious punishment, and is generally awarded only after a proper enquiry has been conducted. For reasons of discipline, a workman may be suspended without prejudice during the course of an enquiry. During suspension, the employee receives a subsistence allowance.

5. Retrunchment

It means a permanent termination of the service of an employee for economic reasons in a going concern. The industrial disputes Act, 1947, defines retrunchment as the termination by the employer of the services of workman for any reasons.

It means be noted that termination of services as a punishment given by way of disciplinary action, or retirement either voluntarily or on reaching the age of superannuation, or continued ill-health, or on the closure and winning up of a business, does not constitute retrenchment.

On retrenchment, an employee is entitled to both retrenchment compensation and gratuity. The former is intended to give a worker some relief and to soften the hardship which retrunchment inevitably causes.

6. Lay-off

A lay-off is a temporary separation of an employee from the employment. Lay-off is caused by shortage of raw materials, power shut down, or machinery breakdown. The employee is recalled once the normalcy is restored.

A lay-off refers to an indefinite separation of employee from the pay-roll due to factors beyond the control of the employer, the employee is expected to be called back in foreseeable future.

It involves a temporary or permanent removal from the pay-roll of persons with surplus skills. The purpose of a lay-off is to reduce the financial burden on an organisation when human resources cannot be utilized.


At last words, lay-off, resignation, retrenchment, dismissal, voluntary retirement schemes are manifestation of employee separation.

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This Post Has One Comment

  1. Tushar

    Best article to human resources

    Thanks Divyanshu for giving deeply knowledge

    Your article is amazing

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