Transfer & Employee Separations in HRM

Transfer – It can simply be defined as “a change in job assignment of an employee.”

It involves movement of employee from one job to another within an organization while being in the same level of hierarchy, requiring similar skills, involving same level of authority and responsibility and similar pay.

Types of Transfer –

  1. Production Transfer – Movement of employees within an organization due to changes in production requirements.

  2. Replacement Transfer – Movement of an employee within an organization to replace an existing employee.

  3. Rotation Transfer – Movement of employees within an organization to increase their versatility.

  4. Shift Transfer – Movement of employees within an organization from one job shift to another. It involves change in job timings.

  5. Remedial Transfer – It involves movement of an employee within an organization to correct a wrong placement.

  6. Penal Transfer – Movement of an employee within an organization in order to punish him for a misconduct.

Essential Principles of a Transfer policy –

  1. It must be in writing and must be communicated to all employees in an organization.

  2. It must clearly state the type of transfer and the selection criteria.

  3. It must clearly state the basis of transfer.

  4. It must indicate the authority responsible for executing the transfers.

  5. It must specify the rate of pay and dimensions of transfers.

  6. It must indicate whether any training is required for the new job.

  7. It must ensure that transfers are only made when necessary.

Employee Separations – It occurs when employees cease to be members of the organization, the service agreement ends and the employee leaves the organization.

Causes of Employee Separations –

  1. Resignation – It occurs when an employee quits the organization on voluntary, personal or professional grounds.

  2. Retirement – It occurs when an employee has completed his full tenure in an organization. It may be voluntary retirement, compulsory retirement or retirement due to the death of the employee.

  3. Lay-offs – It is temporary removal of employees from the pay-roll of an organization due to adverse business conditions.

  4. Retrenchment – It is the permanent termination of an employee due to economic reasons such as surplus staff, economic losses, poor demand and general economic slowdown.

  5. Out-placement – In this case employers help the employee to find a job in another organization. It happens in cases where services required from employee are temporary or one time jobs.

  6. Suspension – Under a suspension an employee is prohibited from attending and performing work due to disciplinary reasons.

  7. Discharge – It is a permanent termination of employee due to reasons such as – Alcoholism or Drug abuse, Dishonesty, Carelessness, Inefficiency or Physical disability

  8. Dismissal – An employee is dismissed from his services. It is a punitive measure for some misconduct.

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