Distinction between Demotion and Discharge

[care]

What is the difference between Demotion and Discharge?

[nbm]

Following are the points of distinction between demotion and discharge:

(1) Demotion is a transfer of an employee to a job lower than his present job carrying lower pay, status and responsibilities while discharge involves separation from the pay roll of the organisation where he is assigned no job higher or lower.

(2) Demotion may be the result of an unsatisfactory performance on the part of the employee but discharge is always the result of misconduct or unsatisfactory performance on the part of the employee. It is a penal reward.

(3) Demotion is permanent while discharge or dismissal temporary till such time the charges are not proved through grievance handling procedure. If charges are proved, he will be terminated otherwise he will be reinstated.

(4) In discharge the employee may be deprived of the benefits such as payments from provident fund, payment of gratuity, pension etc, but there is not such loss in demotion.