Details are contained in an Israeli report to the UN, which claimed there was no evidence of any war crimes having been committed.
The disciplinary action was brought against a brigadier general and a colonel for their decision to approve the firing of white phosphorous shells at a UN compound in Gaza on 15 January 2009.
The report says that both officers have retained their ranks.
The fires caused by white phosphorous cannot be extinguished using water and its use as a weapon in civilian areas is banned by the Geneva Convention.
International conventions allow white phosphorus as a battlefield weapon or for creating smokescreens for ground forces but strictly limit its use in civilian areas.
The initial UN report, authored by South African judge and former international war crimes prosecutor Richard Goldstone, was released in September and accused both Israel and Palestinian militants of war crimes.
It recommended its findings be passed to the prosecutor at the International Criminal Court at The Hague if Israel and Gaza's Hamas rulers failed to carry out credible independent investigations of the claims.
The 22-day war killed 1,400 Palestinians and 13 Israelis and sparked widespread international criticism of the Jewish state for using disproportionate force.
Israel had boycotted the UN investigation and called the Goldstone report unbalanced.
But it issued its 'Gaza Operation Investigations: An Update' document last week, in the face of the threat by Mr Goldstone to refer war crimes charges to an international court.
The Israeli report to the UN said the military had launched 36 criminal investigations into the conduct of Israeli forces, resulting so far in one conviction.
That soldier was jailed for stealing a credit card from a Palestinian home.
