Separation is a step ahead of demotion. It involves cessation of services of personnel from an organisation. The employment  relationship between an organisation and its employee comes to an end. The contractual relationship comes to an end. A person retires (at the age of sixty) from the service and this is one type of separation. However, separation is also possible before the expiry of the period of contract. Here, the employer normally takes initiative. In the case of layoff, retrenchment, discharge or voluntary retirement, separation takes place but it is at the initiative of the employer/ management. In the case of retirement, the initiative is by the employee.

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