Understanding the Difference Between Discharge and Dismissal: Can You Clarify?

Hi Ravi,

Please clarify what exactly is the difference between discharge and dismissal.

Thanks,
Ravi

Hi Ravi,

Dismissal occurs as a result of disciplinary action taken against an employee who has committed an offense as specified in the Standing Orders of the company or violated other laid-down policies.

Discharge is the normal termination of an employment agreement due to reasons such as reaching the age of retirement, downsizing, or the abolition of the role which the individual was fulfilling, etc.

Regards,
Naresh Taneja

Hi Taneja Ji,

Thank you very much for the information. Please also clarify whether removal from service can be equated to discharge. As you are aware, removal from service can be imposed as a penalty. Can we use discharge instead of removal from service? In essence, my question is whether discharge can be imposed as a punishment.

Ravi

Dear Ravi,

If I understand correctly, you want to punish an employee and terminate his employment but without telling him that it is as a result of punishment! That is not legal.

If termination of the employment is all you desire, then invoke the employment contract term which states that employment can be terminated by either party (employee as well as employer) by giving one month's notice or salary in lieu.

Regards,
Naresh Taneja

Hi,

I am writing below some points of differences between Discharge and Dismissal. These are:
1. A dismissal is a more severe punishment than discharge. There is a stigma attached to the expression "dismissal," a disqualification for future employment. This is not the case with discharge.
2. While dismissal is always a punishment, discharge may or may not be a punishment.
3. In the case of dismissal, the employee is not usually entitled to provident fund or gratuity benefits, but this is not the case with discharge.
4. In dismissal, immediate action is taken to terminate the employment contract of the employee without notice. However, in the case of discharge, an agreed amount of notice may have to be given.
5. Before dismissing an employee, the employer has to hold disciplinary proceedings in a proper way, whereas in the case of discharge, he may or may not go for it.

Hope you will find it useful.

Thank you.

Hi Divya,

Let me add to what you have said:

1. Discharge simpliciter and another is Discharge with stigma. When it is discharged with stigma, the discharged employee faces problems in getting another employment. In cases of Dismissal, a proper domestic enquiry is a must. Only then can the punishment of dismissal be inflicted. Dismissal cannot be made without considering the gravity of the misconduct proved. This is the sole consideration for dismissal; otherwise, the dismissed would challenge the dismissal order in the court of law, and the management has to prove that the dismissal order is perfectly in order. In a domestic enquiry, the procedure for inflicting Major Penalty has to be followed. Otherwise, the dismissal order cannot withstand in the eyes of the law. As regards the release of PF and Gratuity dues, those are governed by the respective Acts. :idea: I hope this further clarifies the correct legal position. :)

Regards,
Yours truly,
Satish Kumar
Sr. Manager (HR)
NTPC Foundation, Noida

Hi Ravi,

I think Naresh Taneja has given you a fair idea about the subject topic, and I would like to add one thing: "A dismissal is followed by certain steps, such as warnings (verbal, written), inspections, and reports on the topic, etc. Discharge is something that is bound by the standing order of the company. Take, for example, retirement, lockout, shifting of the company, lack of funds, or a stay order of the court.

Please write to me if I am wrong!

Regards,
Sachin Pathak

When the Industrial Employment (Model Standing Orders) Act is applicable, can 'DISCHARGE' or DISCHARGE SIMPLICITER be imposed after a domestic enquiry and charges proved? Please note that Discharge is not listed as a punishment as per Standard Orders. Is there no alternative to "DISMISSAL"?