Separation

The process of an employee leaving the organisation; either voluntarily or involuntarily. This is the back end of the HR cycle; upon the termination of an employment contract with an employee, thus commences the recruitment phase. Ideally, a firm would want to limit the separation rate to minimise the frequency that HR undertakes the process (it is very expensive and time consuming).

• Voluntary separation: whereby an employee leaves without the forced intervention of the firm. This can be in pursuit of new opportunities, change in private circumstances, or a cause undisclosed. HR should interview departing employees in order to appeal to them to stay (counter-offer) or identify problems in workplace.

• Involuntary dismissal: whereby an employee leaves the firm due to the intentional actions of the firm. 

  • Redundancy: Position in firm no longer exists due to closure of worksite, completion of project, lack of demand, strategic re-orientation of firm, product deletion, sale of asset, financial difficulties (downsizing). Not the fault of the person in the role.  Documentary evidence is required; notice and leave entitlements must be granted in compliance with legislation and industrial agreements; redundancy payouts must be made (expensive to terminate positions—6 months pay); and departing employees should undertake outplacement (transitional assistance and training to enter new roles outside the firm).

  • Misconduct / Poor Performance: Termination of employment contract on basis of misconduct (rule breaking) or poor performance. Serious misconduct results in summary dismissal (instant, without gradual build-up of evidence). 

Firms must follow procedures in order to build documentary evidence of poor performance to ensure dismissal is deemed fair. Unfair dismissal proceedings are expensive and damaging. Fair Work Commission handles claims of employees for unfair dismissal.