Understanding Termination, Discharge, and Dismissal: Can You Clarify the Differences?

NKTiwari
I would like to have a clear picture of the difference between termination, discharge, and dismissal. Please add your valuable comments if any.

Regards,
NKT
Gogo
Termination is looked down upon as the employee has been unceremoniously removed from his job due to some unpardonable reasons like breach of trust, embezzlement, etc.

Discharge is a separation based on mutual understanding between the employee and employer, in line with the procedures of the organization.

Dismissal is the temporary removal of the person from the organization as a punishment for his actions.

Hope this clears it all.

Regards,
Gouri
nilendrachand
Termination is the end of any service contract. It includes Dismissal and Discharge. In the case of dismissal, termination is considered as negative; otherwise, termination is not always negative.

Dismissal is the termination of service as a disciplinary action taken by management against a delinquent. Dismissal is permanent in nature unless the matter goes to court and the decision goes in favor of the employee, who is then reinstated in the company.

Discharge is the end of a service contract with mutual understanding.
nithiselva
Hi NKT,

Adding to our friends Points.

I CAN SAY LIKE THIS.

1. Termination: This is done during the Training/Probation Period of any employee. That means we have to specify the Appointment order that we may terminate their services if the performance of the employee is not satisfactory.

2. Discharge: After getting confirmation that any employee has committed misconduct, if it is proven by the inquiry officer after conducting an investigation, we can discharge the employee from the services of the company. For this, we have to provide all benefits to the employee like PF & Gratuity.

3. Dismissal: This is a severe punishment given to any employee of the organization after an investigation is conducted. For this punishment, the employer is not required to provide gratuity to the employee since it is a severe penalty.

Please let me know if you need any further assistance or clarification.
nilendrachand
Well, I don't agree fully with NS. Termination is simply the end of a contract of service. It can be of any type, namely: Retrenchment, Discharge, Dismissal, End of fixed-term contract, etc. It is negative if inflicted as a punishment. Dismissal is a termination which is inflicted as a punishment on the delinquent. Discharge is the termination of service mainly on medical grounds like continued ill health, partial/total permanent disablement, and cases like that.

Dear NS, once again your definition is not correct. Termination can be at any stage (Training/Probation/Confirmation). Termination, as stated above, is a broad term in which all the types of service ending terms come in.

Regards,
Nilendra
muhdin
Considering Nilendra's note I agreed with that and would like to add something in Dismissal paragraph.
Dismissal caused for misconduct. Which are like as follows:
• Habitual late attendance in office.
• Absence for work without permission or getting leave granted.
• Misbehavior with colleagues, superior officers or clients.
• Moral turpitude.
• Accepting any employment under any person or organization with or without remuneration.
• Fraud, misuse and defalcation of fund, material and equipment belonging to the company.
• Accepting bribes, material or financial benefits from any employee or client of the Company.
• Unauthorized divulgation of any information regarding operation of the Company to any organization or persons including clients.
• Any other conduct unbecoming of Company official act or a person.
Thanks
Jahir
Dhaka, Bangladesh
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Raja Gopalan
Ladies and Gentlemen:

Please see the following terminology,

Discharge- It's the term used to see the methodology of an employee serving his duties and responsibilities.

E.g.; - If appointed, I shall discharge my duties effectively & in efficient manner to the benevolence of the Corporation.

Dismissal – It's an authoritative action exercised by Management to relinquish an employee for vital reasons involving breach of business confidentiality, illegitimate conduct against the Organization & Community and participation in any such act of individual or group which is outlawed or impacting the credibility of the Organization & Community. Employee is entitled for benefits in this case.

E.g.: - Based on the above reasons or findings or conclusions, you are dismissed from our services with immediate effect & be advised that to collect all dues (if any) in favor of you from our Finance Dept. as on today.

Termination - Again it's an authoritative action exercised by Management in Human Resources, in which an action form for Personnel Dept. is notified either to release him at the end of his service contract or as disciplinary action against him for any misconduct at workplace, accommodation & misbehavior or disobedience against senior staff, involvement in illegal act or breach of any local custom…etc. Employee is entitled for benefits in this case, otherwise decided by Management for any fiscal frauds & accepted by employee.

E.g.: -

1. Owing to surplus manpower deployed for our Project which is nearing to completion; your services are hereby terminated and advise you to approach the Accounts Dept. to receive your dues as of today.

2. Owing to incident reported in which your action is evident of the breach of code & conduct for the employees to observe while on or off duty or in workplace or accommodation; your services are terminated with immediate effect. You are further directed to comply with exit clearance.

Raja Gopalan

+966-501558781
nilendrachand
Dear All,

Please understand that termination is not a particular way of ending a service contract of any kind. All means by which a service contract comes to an end is termination. For example: Discharge, Dismissal, Retrenchment, End of a fixed-term contract, Non-renewal of a contract, etc. All these are termed as termination. Termination is not always negative. If it is inflicted as a punishment, it's negative; otherwise, it's not.

Raja, taking your example, I would say it this way: in the first example, service came to an end due to non-renewal of the contract, and in the second example, service came to an end due to dismissal. Hence, termination in itself is not a means by which a service contract ends.

Regards,
Nilendra
rkjain29
Dear all,

Termination is a broad term that refers to the end of the relationship between an employer and employee. It can occur due to various reasons such as resignation, dismissal, discharge, superannuation, or retirement. The focus of termination is primarily on the employer-employee relationship.

I hope this explanation helps you understand the concept of termination.

Regards,
Ritesh Jain
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