Saturday, May 2, 2009

Employee Separation – Resignation, Termination and Absconding

by Sanjeev Himachali @ hr_Pakistan yahoo group

 

Introduction

Employee Separation is one of the very important and crucial function / process of HR Department. This process, if not handled in an efficient manner, can lead to various legal complications.

Let’s understand the term employee. According to various definitions an employee can be defined as:

1. a worker who is hired to perform a job (wordnet.princeton.edu/Perl/webwn)

2. An individual who provides labor to a company or another person (en.wiktionary.org/wiki/Employees)

3. An individual who provides services for compensation to an employer and whose duties are under the control of the employer. (www.aspa.org/resources/res_news_glossary.htm)

An employee works for an employer and gets paid for his work and nothing else. The relation of an employer and employee has a beginning; they stay together for a while and then they separate. Beginning of the relation is called as recruitment process or talent acquisition that passes through selection phase and followed by induction. Staying together in the relation comprises the various phases such has performance management; career management; professional growth; development and etc. And the final stage of the relation is the separation.

Broadly speaking, in normal scenarios the separation between employer and employee can be due to any of the following three (this will be discussed in detail in subsequent paragraphs):

1) Resignation – Employee decides to leave the organization.

2) Termination – Employer decides to break the contract of employment.

3) Absconding – When the employee decides to leave the organization without tendering his resignation or following the proper process of separation.

Apart from the above mentioned, the relation between employer and employee can also be terminated during the lay-offs (Financial or economic crisis); during the process of mergers, acquisitions and take-over; or any other legal intervention by the state or central government.

Based on the type of employee that has been hired by the company, if local or an expatriate or a national of other country or if an employee is hired through outsourcing agencies, the process of separation and the documents involved in it also differs.

Later in this article we will discuss these things in more detail.

Types of Separation

Resignation – This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities; a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country. So, an employee resigns for:

1) Better compensation and benefits

2) Higher position / level

3) Challenging role

4) To move from an unknown or lowly branded company to a highly branded and reputed company (Top 10 or 25 companies in the world etc)

5) For foreign or international assignments

Termination – Usually, this process is perceived negatively by employees. In termination, an employer uses his right to terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are:

1) Non-Performance

2) Indiscipline

3) Misconduct

4) Insubordination

5) Theft and etc

Absconding - This is one of the most unethical, unexpected and unprofessional way to terminate the contract of an employment. In this, on one fine day an employee decides not to go to work. He does not care to hand-over his stuff. In case an employee decides to abscond (or run-away), it becomes very important to understand his motives and intentions. Employees can abscond in either or all of the below mentioned circumstances / situations:

1) After stealing the confidential information or documents or database from the company.

2) If the intentions of an individual is to commit a crime.

3) If there is a work-pressure and stress and the individual is not able to cope-up with it (as it happens in call-centers, BPO and other high-stress industries).

4) If the employee has committed any crime outside the office and after working hours (such as murder or getting involved in terrorist activities or theft or any other civil crime).

5) Then, when priorities are different. Employee has asked for leave due to some urgency at his home (or might be he is trying to escape from his work responsibilities) and at the same time his team also needs him in the office and his leaves are not approved.

6) If he has got some exceptionally good opportunity that requires him to join immediately and he feels that the process of separation in his company is a bit too complicated. He assumes few things and do not really try to face the challenge.

7) Lastly, it is a personality issue. Employees that abscond have different personalities. They are low in confidence. They are too weak to face the reality and challenges of life. They feel that running away from the problem is as good as solving the problem. They are cowards to take the problems head-on.

You can read the complete article at: http://ezinearticles.com/?Employee-Separation---Resignation,-Termination-and-Absconding&id=1996242

The remaining part of the article consists of the in-depth process of employee separation; stages; documents and people involved.

Conclusion

The processes described in this article are just the general outline that must be followed in case of any separation and not any industry or company specific processes. Based on the employment laws applicable in the countries that they are operating in, companies can choose to be more stringent or lenient in their approach. The process described here is more amicable and ethically correct.

Once an employee decides to resign and leave the organization, whatever you may do but he will leave; if not today then tomorrow. On the other hand, if the employer decides to terminate the contract, he might change his mind, provided the case against the employee is not very severe.

Absconding, as mentioned above is in itself is a crime; something that only coward people do; such people just give-up without even making an attempt. These people run away from the reality of life and from the challenges that life offers to get best out of you and to make you master.

As an employee whenever you decide to leave the company, do it in a more professional and acceptable manner.

It will be nice to get your feedback and comments on this article and also your suggestions as how one can improve these processes.

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