I'm not sure what this distinction of "Penal Battalion/Penal Company" comes from, I'm not aware of such a distinction. To my knowledge Penal Battalions are made up of Penal Companies, just like a regular Battalion is made up of regular Companies. I did see a reference to an "8th Independent Penal Battalion" which was allegedly made up of disgraced officers, you may be thinking of this one in particular.
And I did literally just say Penal Troops were equipped and used not much differently than Infantry, so I don't know how that's "Hollywood". They got the often jobs with the highest mortality rate, but those jobs would have been done by the Infantry anyway.
This has been said on the forum many times. Exists:
- Penalty companies. These are units of guilty soldiers and sergeants. They can be as large as a battalion, but they will still be called a company because they are privates. Colobarationist soldiers who fled back or were taken prisoner also come here.
- Penal battalion. They can be of any size (for example, a company), but everything will be called a battalion early on because an officer will serve in it - no matter who, a lieutenant or a colonel, if they got drunk, incompetently fulfilled the order and killed many soldiers under their command, did not fulfill the order, etc. ... They go to the penal battalion.
All those freed from a separate penal battalion were reinstated in rank and in all rights, all military awards were returned to them. In the event of death, the family was entitled to a pension on a general basis from the salary of the last position before being sent to a separate penal battalion.