Understanding Termination vs. Dismissal: Why Knowing the Difference Matters in the Workplace

Differences Between Termination and Dismissal

In the context of employment, termination and dismissal are often used interchangeably but actually have distinct meanings.

Termination generally refers to the end of an employment relationship for various reasons, such as resignation, retirement, or the completion of a contract.

On the other hand, dismissal specifically refers to the termination of employment by an employer due to reasons like poor performance, misconduct, or redundancy.

Understanding these differences is crucial for both employers and employees to ensure clarity and fairness in the workplace.

Technically and logically, there is no difference between the two. If you are asking this in the context of any particular case, then please share the same.

Thanks,
Regards

Thank you for your reply. As far as I know, if an employee is terminated, then he/she shall receive benefits such as PF, Earned Leave, 1-month Salary (as prescribed in the Appointment Letter), etc. However, if he/she is dismissed, the respective person shall not be eligible for any benefits.

Thanks,
Rabbany

Understanding Termination and Dismissal

Termination means "অবসান," which may be initiated by either the employer or the employee (resignation). However, dismissal means "অবসারণ," which occurs solely from the employer's side. According to the Bangladesh Labor Law, if any employee is dismissed for reasons such as "theft, fraud, or dishonesty in connection with the employer's business or property," they will not be entitled to any compensation. In any other case, they will receive compensation. Please refer to Sections 23, 26, and 27 of the Bangladesh Labor Law.

Thanks,
Mahbub

There are distinctions between dismissal and termination according to Bangladesh Labour Law 2006. I hope the following articulation will satisfy your query.

Dismissal

Dismissal is done on the grounds of disciplinary action. To dismiss an employee from service, there are certain steps that need to be followed as per Bangladesh Labour Law 2006. For dismissal, an employee is entitled to due salary, PF, and Gratuity (if applicable).

Termination

Though termination means discontinuation by either party, according to Bangladesh Labour Law 2006, termination is to discontinue an employee by the employer without assigning any reason. According to Bangladesh Labour Law 2006, to terminate an employee, the employer must give them 4 (four) months' notice or 4 (four) months' salary in lieu of the notice period. Due salary, PF, and Gratuity (if applicable) are also payable in this case.

Regards,
Saikat Barua

Termination Without Cause

Without any reason, a company can terminate any employee. The company will send a termination letter but won't mention the cause. For termination, the company should pay 4 months' salary and other benefits (PF, Gratuity, or Compensation benefit).

Dismissal Due to Disciplinary Action

Dismissal is done on the grounds of disciplinary action. According to the Bangladesh Labor Law, if any employee is dismissed for reasons of "theft, fraud, or dishonesty in connection with the employer's business or property."

For dismissal, you have to send a show cause letter, form an inquiry committee, and after proof, you have to send a dismissal letter. The employee is entitled to salary up to the last working day plus Compensation benefit and PF.