The board ruled Thursday Royal Canadian Mounted Police Constable Susan Gastaldo will be docked seven days pay and also receive a medical discharge, the Vancouver Sun reported.
Gastaldo was found guilty of disgraceful conduct for having sex with her boss in a police car.
Board chairman Superintendent John Reid was particularly critical of Gastaldo, saying she repeatedly lied about having an affair with her boss.
Reid also said Gastaldo has lost all credibility and should receive a medical discharge.
A medical discharge would allow Gastaldo, a 14-year veteran, to leave with pension and other benefits.
Larry McGonigal, Gastaldo's lawyer, said after the ruling his client will appeal the decision to the head of the RCMP, Commissioner Bob Paulson.
Staff Sgt. Travis Pearson, Gastaldo's boss who initiated the sexual relationship, was docked 10 days pay, McGonigal noted.