Penalization is a penalty deducted by the employer to the employee. It is an act of charging a penalty. Penalization can be very serious for employees. It may include suspension, lay-off or dismissal, or the threat of suspension to the employee. The employee may lose an opportunity for promotion. Penalization may include the transfer of duties, change of location of the place of work, and reduction in wages. It can happen due to various reasons including late coming, no or less attendance, excessive leaves, etc.