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1 Termination
This refers to the end of an employee's duration with an employer. Depending on the case,the decision could be made by the employee, employer or mutually agreed upon by both.
Termination in other words refers to cessation of employment.
It could be due to retirement resignation,dismissal or discharge or retrenchment.
There are two types of terminations
A. Voluntary termination
Resignation and Retirement due to age fall under this category.
B. Involuntary termination
Dismissal, discharge,Forced resignation,Retrenchment all fall under this category.
2. Dismissal
This refers to the employer's choice to let go the employee for a reason. The reason in the case of dismissal is always for a fault or misconduct committed. In colloquial language it is referred to as getting fired.There is stigma attached.
Dismissal is referred to as "Capital Punishment" in labour law parlance.
The severance here take place after conducting enquiries on the charges levelled.
3.Discharge
Discharge again is initiated at the instance of employer. Probably it has the origin for relieving the employee on medical grounds or on his inability to perform. Discharge is not a punitive action. It is generally considered that it has no stigma attached. But when we read Standing orders, we always see in pun punishments " a person can be dismissed or discharged" making it punitive in nature.If we use the terminology in a letter saying " you are discharged as you were found guilty of the misconducts" it is equivalent to dismissal and punitive in nature.
If we say "you are discharged as we have examined your medical reports and found that you are no longer capable of performing the duties assigned to you" does not carry a stigma.
There are instances, when we issue a discharge simpliciter. Probationers termination order falls in this category. (Municipal committee Sirsa Vs Munshi Ram 2003 SC) There were also cases where employees were issued with discharge simpliciter and evidenced rendered in the labour court. But we need to examine case to case basis.
Even though, discharge started with no stigma basis, we still have two types in todays context. One punitive action which has stigma attached and instead of using the word dismissal, the word discharge is used.
The other where no stigma is attached.
4. Retrenchment
Reduction in employee's strength .
Siva