Dismissal vs Resignation: Which Is Better for Company Finances and Reputation?

Which one is beneficial: Dismissal or Resignation?

Beneficial to the company in monetary terms, what does the company stand to lose in terms of terminal benefits in cases of misappropriation and fraud? Also, in matters of the aftereffects of the action and the company image.

Kindly explain the scenario, and then the seniors might be able to guide you properly.

If the question is as simple as this, then resignation is obviously the better option.

Can you please explain the question clearly so that we can give you some suggestions.

Understanding Employment Separation: Dismissal vs. Resignation

Dismissal from service can be against your will and is a permanent blot on your record, as it signifies that you have been removed from the company by the management due to serious fraud or irregularities on your part. This can have a negative impact on future employment prospects, as other organizations may be hesitant to hire someone who has been dismissed.

On the other hand, termination from service, while still undesirable, is generally less severe than dismissal. It may indicate that your services were no longer needed due to staff reductions, economic measures, or the end of a contract.

Resignation, however, is viewed as an honorable act. It allows you to leave an organization voluntarily and with dignity, maintaining your goodwill.

Certainly, resignation is a much preferable option compared to dismissal or termination.

Regards,
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of Management & Educational Consultants
New Delhi, India

"Which one is more beneficial: Dismissal or Resignation?"

Dear colleagues,

Factors Influencing Dismissal or Resignation

It all depends upon two main factors:

1. Kind of industry
2. Organisational culture

For the first factor, it can be divided into two branches. If an employee falls under the definition of workmen under the Industrial Disputes Act, it is better to obtain resignation and relieve him of duties. This will avoid many legal complications and also expenses, even if you have to spend some extra amount. The other category, the so-called office category, allows you to dismiss him, but you have to provide him an opportunity to explain, etc.

Regarding organizational culture, if the organization doesn't want an employee, simply serve him the notice and dismiss him. Some organizations prefer not to dismiss and instead opt for the employee to resign. However, in my opinion, it is always better to take resignation and relieve an employee. It is safer and more advisable. In fact, I suggest taking the resignation letter with a prior date and relieving immediately.

Regards,
Nagaraj
[Email Removed For Privacy Reasons]

Both actions are independent of each other.

Resignation:
When an employee decides to leave the company he is working for, he submits his resignation, and separation happens. It is a voluntary action by the employee.

Dismissal:
This is a disciplinary action by the management against an employee who has committed some serious acts of misconduct. An employee is dismissed from service after a defined disciplinary process is gone through with. It will not be correct to assume that one action is more beneficial than the other.

Termination vs. Resignation: Which is More Beneficial?

Termination with severance pay is beneficial to an employee. Resignation is better when there is going to be termination without notice pay. Resignation is also preferable if termination is due to misconduct. Termination is advantageous if the employee wants to go to the Labor Court when the employer does not wish to give severance pay. The advantage depends on the situation.

Regards

[Email Removed For Privacy Reasons]
Off: [Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]
Mobile: [Phone Number Removed For Privacy Reasons].

Dismissal is the situation where you do not receive any benefits and it is considered a punitive action that may affect your ability to secure employment elsewhere. On the other hand, resignation is beneficial as the candidate is entitled to all benefits.

Dismissal vs. Resignation: Understanding the Implications

Namaste.

Dismissal is a harsh, major punishment. It implies the loss of major terminal benefits, particularly gratuity. An employee dismissed from service loses his/her right to gratuity. If the termination of service due to misconduct while in service is necessary, offer an opportunity to the concerned employee to tender resignation and go gracefully. If he/she is adamant, there is no option but to dismiss him/her. In the event of dismissal, severance pay and other compensatory benefits are not applicable. Such benefits become due only when the termination is on other grounds than misconduct.

In a government set-up, there is one more option which is not available in the private sector. It is compulsory retirement. If a government employee is found guilty of misconduct and misbehavior, his/her services can be terminated after the conclusion of due disciplinary proceedings. It is for the disciplinary authority to pass on punishment in the form of dismissal or compulsory retirement. If the employee is 'dismissed' or 'removed from service', the employee loses the right to claim gratuity and pension. However, if the disciplinary authority is kind enough, a lesser punishment can be handed down in the form of compulsory retirement. In this case, the compulsorily retired employee loses only the balance years of service but retains all terminal benefits such as pension, gratuity, leave encashment, memento, post-retirement medical benefits, etc.

The Honorary Path: Resignation

Resignation is an honorary way of parting. Just take the resignation letter and relieve him/her. No need to take the resignation letter of a back date or pay any notice pay, etc. The management always has the right to waive notice pay or condone the notice period. Just shake hands and bid goodbye!

Regards,
Shyam Agrawal

Viktor, resignation and dismissal differ in various situations. If an employee feels they are being terminated without sufficient cause and intends to seek reinstatement or legal redress, then it might be worth being dismissed. However, the employee must be very clear about the strength of their case for redress. If the employee is at fault and dismissal is imminent, it is better to resign to save one's reputation. It must be remembered that dismissal is a blot on a career, and no washing powder can make it white again! An honorable exit is always preferable. However, the exact context in which you asked this question is not clear.