1. UNIT-V
Separation and Maintaining: Communication and
Counseling - Safety and Health –Internal mobility
- Retirement and Retirement benefits.

2. Communication
Communication is the process by which we exchange meanings, facts, ideas, opinions or emotions with
other people. It is an essential condition of our existence and one of the most important activities.
According to Sir John Harvy “communication is the single most essential skill”. According to Scott
“administrative communication is a process which involves the transmission and accurate replication
of ideas ensured by feedback for the purpose of eliciting actions which will accomplish organisational
goals”.

3. Importance of Effective communication in business
 Builds better customer relationship
 Saves time and increases productivity
 Maintains clarity
 Empowers partnership
 Motivation and morale
 Corporate image

4. Elements of
communication
process

5. Principles or 7Cs of Communiction
 Courtesy: is self-suggestive of being aware and empathizing with the reader/listener‟s feelings.
Information sharing should also try to create a harmonious understanding
 Clarity: The originator of message, should be clear about their thoughts, i.e., why the message is sent?
What is the message? And for whom the message is intended?
 Conciseness is a prerequisite for effective business communication where time is money. A long
winding message is a time robber and is bound to be rejected.
 Concreteness: Clarity and conciseness come with the use of concrete word. Use of figures, facts, names,
examples and vivid nouns add a special touch to the expressions.
 Correctness: The correct use of grammar, message composition, the use of appropriate words and
adapting the right level of communication to suit the receiver‟s level determines the correctness of the
communication.
 Consideration: This kind of thoughtful approach to communication is also termed as „you-attitude‟
 Completeness: The content of the message must be complimented adequately with the context in which
the message is communicated

6. Forms of Communication
 I. Verbal Communication consist of both Oral and Written communication. Oral communication
should be as clear, specific, tactful and precise as written communication should be. Fluency in speaking
and writing makes one a good business communicator.
 Oral Communication

Oral Communication involves not only words but also the nuances of voce that acts as
a communication channel. When a word is uttered with clarity, feeling, correctness and
the rhythm of word it becomes almost lyrical. There are certain factors that matter in
oral communication.

Written Communication

Written communication will test the ability of the communicator to use words
correctly, simply, clearly and courteously. Business writing is governed by the rules of
formal expression without being impersonal. Correctness of grammar, the right tone,
tactful use of technical words, omitting all clichés (overused words), correct
punctuations, precise message composition and short messages are the golden rules
that govern business writing.

7.  ii. Non-Verbal Communication consist of communication beyond the usage of
words, through speaking or writing.
 Body language -Our body plays an important role in communication and the branch
of study of body movements is called as „ Kinesics‟. The visual signals conveyed
from our different body parts communicate the expressions of our feelings and status.
Movement of Head, Facial expressions, Eye contact, Gestures, Body shape and
Posture are communicating our feelings and attitude through the language of our
Body

Para language-includes quality of voice, like pitch, speaking speed,volume variation
and pauses.
 Proxemics –the language of space, involving social space, public space, layout and
surroundings for communicating nonverbally our emotional and social connect in
physical environment.

8. Barriers To Effective Communication
 Linguistic Barriers
 The language barrier is one of the main barriers that limit effective
communication. Language is the most commonly employed tool of
communication. The fact that each major region has its own language is one of
the Barriers to effective communication. Sometimes even a thick dialect may
render the communication ineffective.
 Psychological Barriers
 There are various mental and psychological issues that may be barriers to
effective communication. Some people have stage fear, speech disorders,
phobia, depression etc. All of these conditions are very difficult to manage
sometimes and will most certainly limit the ease of communication.
 Emotional Barriers
 The emotional IQ of a person determines the ease and comfort with which they
can communicate. A person who is emotionally mature will be able to
communicate effectively. On the other hand, people who let their emotions take
over will face certain difficulties.

9.  Physical Barriers to Communication
 They are the most obvious barriers to effective communication. These barriers are mostly
easily removable in principle at least. They include barriers like noise, closed doors, faulty
equipment used for communication, closed cabins, etc. Sometimes, in a large office, the
physical separation between various employees combined with faulty equipment may result
in severe barriers to effective communication.
 Cultural Barriers of Communication
 As the world is getting more and more globalized, any large office may have people from
several parts of the world. Different cultures have a different meaning for several basic
values of society. Dressing, Religions or lack of them, food, drinks, pets, and the general
behaviour will change drastically from one culture to another.
 Organisational Structure Barriers
 As we saw there are many methods of communication at an organizational level. Each of
these methods has its own problems and constraints that may become barriers to effective
communication. Most of these barriers arise because of misinformation or lack of appropriate
transparency available to the employees.
 Attitude Barriers
 Certain people like to be left alone. They are the introverts or just people who are not very
social. Others like to be social or sometimes extra clingy! Both these cases could become a
barrier to communication. Some people have attitude issues, like huge ego and
inconsiderate behaviours.

10. Electronic Communication
 the term e-communication has been widely used since the emancipation of information technology
at the early phase of the beginning of the new millennium. Now-a-days modern means of
technology are used widely in communicating with other parties. The use of computer devices has
eased and sped up the communication takes place with the help of electronic devices like computer
and other means, it is called e-communication.
 Telephone: The most commonly and most widely used electronic device of communication is
telephone.
 Telex: Telex is an important device of modern communication technology. Under this system, a
tele-printer is used by which information can be communicated form one place to another with the
help of a machine.
 Facsimile or Fax: The use of fax a gradually increasing for transmitting visual materials such as
picture, diagrams, illustrations etc. here, the fax machine is connected with a telephonic. The
document to be transmitted is fed through the machine, then it is electronically scanned and signals
are transmitted to the receiving end where an identical copy of the document is reproduced on a
bland sheet of paper by the receiving machine.
 Electronic Mail or E-Mail: E-mail is one of the most widely used and most popular methods of
modern communication system. E-mail involves sending message via telecommunicating links
 Voice Mail or V-Mail: Voice mail is a form of e-mail. It is used to send the voice of the sender
instead of sending written massage to the receiver. The mechanism of sending message here is
almost same as in case of e-mail.
 Teleconferencing: Under teleconferencing system people staying at different places can hold talks
or meetings over telephone

11. COUNSELING
 Counseling is a process of helping another person to find and act upon a solution to their Problems, anxieties,
uncertainties and issues. The person conducting counseling is called a counselor and the person being counseled
is called counselee or client.
 Characteristics or Features of Counseling:
 1) Two-person involvement: Both counselor and counselee are involved.
 2) Communication is direct: Communication is direct with no hidden facts. It is an oral communication and of open type.
 3) Good relationship: There should be a good relationship between counselor and counselee.
 4) Advising: In counseling, the counselor is more concerned with the problem; he should also be duly concerned with the client.
He has to examine the problem and advice him the solution that best fits the problem.
 5) Listening: The counselor has to listen first to the problem of the client. The counselor has to allow the client to talk first.
 6) Confidential: Confidentiality is to be maintained and generally no information can be released without the written authority
given by the client.
 7) Questioning: Counselor has to ask questions regarding the problem and exploring

12. Skills required for counselling
 Communicative skills.
 • Active listening skills.
 • Rational problem solving skills.
 • Skills concerning demonstrating empathy and feedback.
 • Respect or caring.
 • Attentiveness.
 • Rapport.
 • Genuineness.
 • Concreteness.

13. TYPES OF PROBLEMS IN COUNSELLING
 Counseling is not an easy or a smooth task. Some important types of problems for
 counseling are:
 1. Interpersonal problems and conflicts.
 2. Alcoholism, drug abuse.
 3. Stress-related problems.
 4. Frustration, loneliness, alienation etc...
 5. Attitudinal changes, culture adjustment and dealing with occupational obsolesce.
 6. Accident victims, rehabilitation.
 7. AIDS counseling.

14. QUALITIES OF A COUNSELLOR
 • Open and approachable.
 • Empathetic.
 • He must be concerned and having a genuine interest and willingness to help and support
 employees.
 • Attentive.
 • Trust worthy ie., respecting confidentiality.
 • Observant ie., recognizing whether other are actually in deep trouble or problem or having
just a temporary worry.

15. Employee counselling involves the following types:
 1.Directive Counselling,
 2. Nondirective Counselling,
 3. Cooperative Counselling,
 4. Participative Counselling,
 5. Desensitization,
 6. Catharsis,

16.  A Health & Safety Program consists of clearly defined actions to implement the health and
safety policy. In a large company it is desirable to have a full time safety director in
addition to analysts, engineers, safety inspectors. The safety director serves as an
innovator, advisor, and analyzer. He has to organize safety programs throughout the plant
and organize meetings with the line managers.
 Simonds and Grimaldi suggest that “as a rule, one full time safety director should be
appointed for each 1000 employees

17.  The safety director must investigate and report on every accident. He should
periodically summarise all the injuries which have been sustained by the
employees during a particular period of time and classify them plant wise,
department wise and shift wise.
The job of a safety manager is to educate and train the line managers in the safety
measures that should be adopted to prevent accidents and to tell these managers
that the safety of employees is in their hands
 Following are common elements of a health and safety program:
Workplace inspections
Accident/incident investigation
Emergency preparedness
Personal protective equipment (PPE)
Engineering controls
Personal communications
Off-the-job safety
Evaluation and continuous improvement

19. Industrial Accidents
LOSSES DUE TO ACCIDENTS
a)Direct Losses: These are the losses to the employer which he pays to the worker for
the compensation. Employer also pays for medical expenses incurred on the worker.
b) Indirect Losses: These losses arise from the following sources:
Loss of time of the injured person.
 Loss of time of his fellow workers who stop working at the time of accident to help
him or to show sympathy or for curiosity.
 Loss due to damage caused to the machines.
 Loss due to the reduction in the efficiency of the workers when he returns after
recovery.

20. Health
 The term health is a positive and dynamic concept and implies more than an
absence of illness. The WHO has defined health as a state of complete physical,
mental and social well being and not merely the absence of disease. Industrial
health refers to a system of public health and preventive medicine which is
applicable to industrial concerns.
 Objectives of industrial health programmme
 The maintenance and promotion of workers’ health and working capacity;
 The concept of working culture is intended in this context to mean a reflection of the
essential value systems adopted by the undertaking concerned. Such a culture is reflected in
practice in the managerial systems, personnel policy, principles for participation, training
policies and quality management of the undertaking
 A comprehensive industrial health programme should include:
 A Professional staff of physicians and nurses.
 Adequate facilities for emergency care and injuries sustained in the course of work and for
the conduct of pre-employment and post-employment medical check-ups.
 Proper first aid treatment for occupational injuries and diseases.
 Reasonable first aid treatment of employees for non-occupational ailments-for example for
cold, sore throat, skin disorders, headaches and gastrointestinal upsets.

21. Occupational Health and Safety in
India (OHS)
The health and safety of employees working in factories and mines have been given
high importance in India. The constitution of India has provisions to ensure that the
health and well being of employees are protected and the government has the duty
to ensure this protection.
 Companies like Accenture India, Infosys and Pfizer India have health clubs equipped
with modern equipment and qualified trainers at the company premises. Public
sector units like National Thermal Power Corporation (NTPC), Steel Authority of
India Limited (SAIL) and Bharat Heavy Electricals Limited (BHEL) provide such
facilities in their residential townships for employees. Sessions on yoga, meditation
and other relaxation techniques are introduced at the workplace as stress busters.

22.  Inclusions of the worker compensation policy
 Mainly, the policy offers the following coverages:
 Death
 Permanent partial/total disablement
 Temporary disablement
 Legal costs and expenses incurred by the company
 Exclusions of the Worker Compensation Policy
 In a workers’ compensation policy, no party is at the fault. However, a worker doesn’t get
any compensation in the following cases:
 Any injury which doesn’t result in fatality or partial disability for a period more than 3
days
 The first three days of disability where the total disability is not more than 28 days
 Any injury caused to the employee under the influence of drugs or alcohol
 Willful disobedience of safety mechanisms
 Injury caused to employees of contractors of the insured unless the same is mentioned
separately in the policy document

23. MANAGEMENT OF OCCUPATIONAL SAFETY AND HEALTH AT UNIT LEVEL
The following aspects on safety and health have been covered
Appointment of Safety Officers
Safety Committee
Occupational health centers (FMO, Ambulance)
Safety reports
Safety audits
HAZOP studies
SAFETY POLICY
As per the provisions of Sections 7A(3), 41-B(2) and 112 requires preparation of a written statement
of policy in respect of health and safety of workers at work by the factories meeting the
following criteria :-
a) Units covered under Section 2(m)(i) of the Factories Act, 1948 and employing more than 50
workers
b) Units covered under Section 2(m)(ii) of the Factories Act, 1948 and employing more than
100 workers
c) Units covered under Section 87 of the Factories Act, 1948
d) Units covered under Section 2(cb) of the Factories Act, 1948
In addition to the above, the Chief Inspector may require the occupier of any of the factories or class
or description of factories to comply with the above requirements of Safety Policy if in his
opinion it is expedient to do so.

24.  APPOINTMENT OF SAFETY OFFICERS
As per the provisions of Section 40-B of the Factories Act, 1948, Safety Officer is required
to be appointed for the units meeting the following criteria :-
(a) Units employing more than 1000 workers, units wherein any manufacturing process
or operation is carried on Involving any risk of bodily injury, poisoning or diseases or
any hazard to health.
OCCUPATIONAL HEALTH CENTERS
As per the provisions under the Section 41-C of the Factories Act, 1948 Occupational Health
Centers are required to be set up in the Factories carrying and ‘hazardous process’ as
described under Section 2(cb) of the Act. The Industries have been divided into 3
categories. i.e. the industries employing up to 50 workers, employing 51 – 100 workers
and employing more than 200 workers.

25.  RISK ASSESSMENT STUDIES
The HAZOP Studies i.e. the hazard and operability studies
are carried out in advance on any plant to examine the
process or at least the relevant parts of the process to
discover how deviation from the intention of design can
occur to decide whether such deviations can give rise to
hazardous conditions.
 The technique aims to simulate the imagination of
designer in a systematic way and is useful in identifying
potential hazards in advance and allow the user to take
corrective measures

26.  https://www.youtube.com/watch?v=eIQv4bCx8FE

27. Internal mobility
 Internal mobility refers to a qualified employee's general ability to rise through the ranks or transfer
laterally within the company to another job role that has more appeal, is an advancement opportunity
or represents a career change. In today's more sophisticated approaches, formalized internal mobility
programs are an integral part of the overarching HR strategies in recruitment, retention and strategic
staffing. They typically require the support of strong upskilling and reskilling programs.
 While there are two general types of internal mobility, the goal is the same: capitalizing on the
internal labor market for the organization's highest benefit.
 "Internal mobility initiatives must focus on two types of mobility -- role-to-role mobility, where
employees are changing roles within the organization, and also project-based mobility,
 The importance of internal mobility
 An internal mobility program can be a powerful source of top-notch talent, reduce
the cost of talent management, boost organizational agility and improve retention
rates.

28. Types of Mobility
Promotion: Promotion involves upward movement of an employee in organizational hierarchy. In this
case, there is change in job contents of the employee — more authority and responsibility, more
compensation and higher status. Promotion is very common in organizations. It leads to motivation to
employees and they put hard work for getting promotion. It serves the organizational need of having
competent persons at higher positions’ who are well-versed with organizational functioning.
Transfer : Transfer involves shifting an employee from one department to another, from one shift to
another or from one place to another without changing his nature of job. Transfer is a very common
practice in government administration. In business organizations, transfer is used to rationalize
workforce (transferring surplus employees of one unit/department to another having shortage of
employees or lack of competent employees) and to develop multi- skills through cross-functional
transfers.
Job posting : Job posting, also known as internal advertisement, involves recruiting persons from
within either from the organization concerned or organizations belonging to a business group. The
positions to be filled are notified through organization’s intranet. Intranet is a website of an
organization which is accessible by members of the organization concerned only.
In India, some organizations have adopted this practice, for example, Hindustan Unilever, Larsen &
Toubro, etc. At the level of business group, Kumarmangalam Birla group has adopted this method.

29. EMPLOYEE SEPARATION
 Employee separation is a sensitive issue for any
organisation. Usually, an employee leaves the organisation
after several years of services. Thus, the permanent
separation of employees from an organisation requires
discretion, empathy & a great deal of planning. An
employee may be separated as consequence of
resignation, removal, death, permanent incapacity,
discharge or retirement. The employee may also be
separation due to the expiration of an employment.
contract or as part of downsizing of the workforce.

30.  Each organisation must have comprehensive separation policies & procedures to treat
the departing e employees equitably & ensure smooth transition for them. Further,
each employee can provide a wealth of information to the organisation at the time of
separation. Exit interview can be conducted by the HR department to ascertain the
views of the leaving employees about different aspects of the organisation, including
the efficacy of its HR policies.
employee separation has following characteristics:
1. Procuring employee from the society for use in the organisation is the first function.
Separation is the return of those employees to that same society & it is the final
function of HRM
2. It can be a complex & challenging.
3. Separation is either the action of the employee or the employer, bringing their
relationship to end.
4. Sometimes, separation can be traumatic event for the employee & the organisation.
Hence, it can & should be managed. Reason given for leaving must be analysed
carefully.
5. It may not be total elimination of employee.
6. It has costs as well as benefits. Separations can produce values to the organisation.

31. In addition, there are several reasons for separations some
are:-
1. Resignation or voluntary retirement of the employee
2. Non renewal of the contract of employment on its expiry.
3. Continued ill-health or death.
4. Redundancy or retrenchment
5. Punishment for serious misconduct by way of disciplinary
action.
6. Termination for moral turpitude, loss of confidence
7. Discharge of employees who do not meet the
organisation’s expectation
8. Loss of production.

32. Types of Employee Separation
I.Voluntary separations
1. Quits
2. Voluntary Retirements
II. Involuntary separation
 Mandatory Retirement
 Discharge, Dismissal or Termination
 Lay off & Downsizing
 Retrenchment
 Suspension

33. Voluntary separation: Voluntary separations are initiated by the employee himself.
These occur when an employee decides for personal or professional reasons, to
end the relationship with the employer. The reason for voluntary separation may
be:
(a) Employees obtaining a better job.
(b) Changing career, job or firm.
(c) Wanting more times for family or leisure activities.
(d) Finding the present job unattractive because of poor working conditions.
(e) Bad Relationship with a supervisor or officer
(f) Being unhappy with any aspect of the current job
(g) Staffing mistakes.
(h) Poor match between the employee & his job & so on take their former employers
to court for wrongful discharge.
Voluntary separations can be either avoidable or unavoidable. Unavoidable voluntary
separations result from an employee’s life decisions that extend beyond an employer’s
control.

34.  There are two types of voluntary separation:
1. Quits
2. Voluntary Retirements
 Quits: W.H. Mobleys says that the decisions to quit depend on (1) the employee’s
level of dissatisfaction with the job and (2) the number of attractive alternatives
the employees has outsides the organisation. The employee can be dissatisfied
with the job itself; the job environment, or both.
 Voluntary Retirement or Resignation: Like a quit, a voluntary retirement is
initiated by the employee. However, a retirement differs from a quit in a number
of respects:
 An employee may decide to resign voluntarily on personal or professional grounds.
Sometimes an employee may be forced to resign the firm compulsorily on grounds
of negligence of duty, insubordination, misuse of funds, etc. The resignation in this
case, unlike voluntary separation, is initiated by the employer. If the employer
refuses to quit, he may have to face disciplinary action.

35.  When employees resign or quit an organisation, the firm has to bear some costs:
 (a) disruption to the normal flow of work,
 (b) replacing an experienced & talented person may not be easy in a short span of
time;
 (c) training new recruits would take time,
 (d) it adds costs. Hence, the HR department should examine the factors behind
resignation carefully.

36. EXIT INTERVIEW
 Exit interviews are interviews conducted with departing employees, just before they leave. From the
employer's perspective, the primary aim of the exit interview is to learn reasons for the person's departure,
on the basis that criticism is a helpful driver for organizational improvement. Exit interviews (and prior)
are also an opportunity for the organization to enable transfer of knowledge and experience from the
departing employee to a successor or replacement, or even to brief a team on current projects, issues and
contacts. Good exit interviews should also yield useful information about the employer organization, to
assess and improve all aspects of the working environment, culture, processes and systems, management
and development, etc.;
 Sample Questions/Questionnaires
 Tell me about how you've come to decide to leave?
 How would you have preferred the situation(s) to have been handled?
 What specific suggestions would you have for how the organization could manage this situation/these
issues better in future?
 What has been good/enjoyable/satisfying for you in your time with us?
 What has been frustrating/difficult/upsetting to you in your time with us?
 What could you have done better or more for us had we given you the opportunity?
 Would you consider working again for us if the situation were right?

37. Succession planning
 Succession planning is the process of identifying the critical positions within your
organization and developing action plans for individuals to assume those positions. Taking
a holistic view of current and future goals, this type of preparation ensures that you have
the right people in the right jobs today and in the years to come.
 In the long term, succession planning strengthens the overall capability of the
organization by:
• Identifying critical positions and highlighting potential vacancies;
• Selecting key competencies and skills necessary for business continuity;
• Focusing development of individuals to meet future business needs.
 A succession plan identifies future staffing needs and the people with the skills and
potential to perform in these future roles. Professional & Organizational Development’s
Succession Planning Toolkit will help guide you, though we strongly suggest you involve
your assigned HR consultant and/or HR administrator in this process as well.

38.  Voluntary retirement policies consist of two features:
 1. A package of financial incentives that make it attractive for
senior employees to retire earlier than they had planned; and;
 2. An open window that restricts eligibility to a fairly short
period of time.
 Voluntary retirement policies can reduce the size of a
company’s workforce substantially. Managing early retirement
policies requires careful design, implementation &
administration. When not properly managed, early retirement
policies can cause a host of problems. Too many employees
may take early retirement, the wrong employees may leave &
employees may perceive that they are being forced to leave

39.  In case of voluntary retirement, the normal retirement benefits are calculated & paid to
all such employees who put in a minimum qualifying service. Many companies have
started voluntary retirement schemes (VRS) which are called in Golden Hand Shake
Plans. Beginning in the early 1980’s companies both in public & private sectors have
been sending home surplus labour for good. Workers are given freedom to opt this plan.
VRS is considered as a time-saving method to reduce surplus staff. It is a painless easy
plan by which unproductive the older workers can be reduced.
II. Involuntary separation
1. Mandatory Retirement
2. Discharge, Dismissal or Termination
3. Lay off & Downsizing
4. Retrenchment
5. Suspension
An involuntary separation occur when management decides to terminates its relationship
with an employee due to (i) economic necessity or (2) a poor fit between employee &
the organisation. Involuntary separations are the results of very serious & painful
decisions that can have a profound effect on the entire organisation & especially on the
employee who loses his job.

40.  Mandatory Retirement:
 Retirement has been characterized by some as a “roleless role”, with a society built on
work ethic, it is a move from recognizable productive work role to a roleless role. Some
people believe that retirement leads to mental & physical illness & sometimes premature
death. But many studies have concluded that health declines are associated with age, but
not retirement.
 Many unskilled workers demonstrate a slight improvement in health after retirement. In
other studies, no support has been found that retirement is detrimental to the health of
older persons. Other research has emphasized, the extent to which poor health actually
induces workers to retire, thus making health the cause of retirement instead of an
effect.
 Many managers are in favour of this view that compulsory retirement at fixed age for all
is more beneficial. Among the reasons cited in favour are:
 (i) It is simple to administer with the fixed age
 (ii) Openings are created to which younger employees can advance;
 (iii) Human resource planning is facilitated when retirement schedules are known;
 (iv) Graceful exits are provided for employees who are no longer qualified; &
 (v) It stimulated employees to make plan for retirement in advance of a known date.

41.  Discharge, Dismissal & Term Discharge is the most drastic disciplinary step the manager can
take. Hence, special care is required to ensure that sufficient cause exists for it.
 Furthermore, discharge should occur only after all reasonable steps to rehabilitate or salvage the
employee have failed. However, there are undoubtedly times & reasons when discharge or
dismissal is required, perhaps at once.
 Dismissal is the termination of the services of an employee as punitive measure for some
misconduct. Discharge also means termination of the services of an employee, but not
necessary as a punishment. Discharge is serious because it impairs earnings & image of an
employee.
 A discharge takes place when management decides that there is a poor fit between employee &
the organisation. The discharge is a result of either poor performance or the employee’s failure
to change some unacceptable behaviour that management has tried repeatedly to correct.

42.  Layoffs
 A Layoff is a temporary separation of the employee from his employees at the instance
of the later without any prejudice to the former. Section 2(KKK) of the Industrial
Disputes Act, 1947, defines lay-offs as the failure, refusal or inability of an employer to
give employment to a worker whose name is present on the rolls but who has not been
retrenched. A lay offs may be for a definite period on the expiry of which the employee
will be recalled by the employer for duty. It may extend to any length of time, with the
result the employer is unable to estimate when he can recall his employees. The
services of the employee are not utilized during the layoff periods.
 Retrenchment
Retrenchment is the permanent termination of an employee’s services due to economic
reasons. These include:
 (a) replacement of labour by machines;
 (b) closure of a department due to continuing lack of demand for the products
manufactured in that particular department;
 (c) closure of plant;
 (d) surplus staff;
 (e) general economic slow down etc.
 It should be noted that termination of services on disciplinary grounds, illness,
retirement, winding up of a business does not constitute retrenchment.

43.  Suspension
 When an employee is suspended, they are excused from work for a specific
period of time, often without pay but not always, either as a disciplinary
measure or pending an investigation into wrongdoing. When an investigation is
pending, employees may be suspended without actually having done anything
wrong, but because their continued presence in the workplace could prejudice
the outcome or process of the investigation.

44. Retirement benefits
 Social Security Provisions
 Employees Provident fund
 Dependent support provided by ESIC
 Gratuity
 Pension plans
 Insurance plans