In human resources context, labour turnover is the rate at which an employer loses and gains employees. In simple ways “how long employees tend to stay”. Labour turnover is measured for individual companies and their industries as a whole. Organisations invest a lot on their employees in terms of training and development programs in order to retain them. Therefore the employers must try to reduce labour turnover at any cost. If an industry or a company is said to have a high turnover compared to its competitors, then it means that employees of that company have a shorter average tenure than those of other organisations in the same industry. In today’s world labour turnover is considered as a downside of any corporate. The major disadvantage of labour turnover is that it has not direct effect not only on production but also on the future profits of the organisation. High labour turnover is harmful to the company’s productivity if high performers are leaving and the labour population includes high percentage of beginners. The first and foremost duty of an employer is to retain the employees in the organisation by increasing their level of motivation and morale which will increase the satisfaction level. Even though there no standard to measure employee turnover as a whole, a wide range of factors have been found useful to analyse the reasons for the shift from one organisation to another. Labour turnover can have both desirable and undesirable effect. The undesirable effect