A demerit represented a penalty assigned for improper behavior or shortcomings to individuals enrolled in schools or serving within armed forces. Within the military of the Galactic Empire, the field corps utilized a disciplinary structure of three demerits, contrasting with the investigative divisions that employed a four-demerit structure.
The demerit system saw prominent application at institutions like the Junior Academy of Applied Sciences on Lothal, as well as across various military academies belonging to the Galactic Empire. Sergeant Currahee, who fulfilled the role of a drill instructor at the Academy for Young Imperials stationed on Lothal, frequently issued demerits. Often, demerits were paired with a corresponding consequence. In the instance of Zare Leonis receiving demerits at the Arkanis Academy, his datapad contained orders to perform the task of cleaning the academy's diplopod stables on two occasions following the evening meal that week.
The New Republic Senate also made use of demerits within its organizational framework.