TERMINATION VS DISMISSAL

by | Jun 12, 2024 | Friday Read

Often times, we hear people say: I have been dismissed from work or My boss has terminated my contract of employment. Have you ever taken a second to ponder over the difference between these two terms?
Well, worry no more! In today’s Friday read, we are going to highlight on some differences between termination and dismissal.
In Ghana, Employee/Employer relationship is primarily governed by the Labour Act 2003, (“Act 651”).
The law requires that the employment of a worker by an employer for a period of six months or more or for a number of working days equivalent to six months or more within a year should be secured by a written contract of employment.
For starters, termination and dismissal are two separate concepts under Ghanaian labour law.
Termination refers to a situation where an employee’s employment comes to an end through no fault of his or hers. Thus, an employee’s contract of employment can be terminated on various grounds including mutual agreement between the employer and employee. The employment relationship may also be terminated by the worker on grounds of sexual harassment and death of a worker. The law places no obligation on the parties to give reasons when terminating the employment relationship.
The termination of an employee contract of employment can either be fair or unfair depending on the manner such termination was carried out.
Dismissal on the other hand is where an employee’s appointment is truncated based on his/her behaviour. Some of the acts that can trigger the dismissal of an employee include fraud, stealing, extortion, corruption and bribery.
A dismissal is usually punitive as the employee may lose most/all of his benefits. It is most often based on the behaviour of the employee and not based on mutual understanding between the employer and employee as may be the case in termination.
In summary, the word dismissal and termination are distinct, separate and have different legal implications.