Disciplinary Procedures: A Guide for HR Professionals and Managers

What do you do when an employee is late for work? How do you handle poor performance? What about more serious issues like violence or sexual harassment? While all of these behaviors are harmful to your organization, they are also very different. How you handle each one determines what impact it will have on your workforce.

If you’re too relaxed about these issues, you risk devaluing your standards for employee conduct, which can lower morale and possibly generate legal issues. On the other hand, too much pressure can create a hyper-critical environment that causes the same problem.

But where it really becomes a problem is inconsistency.

Unstructured disciplinary action can lead to bias, legal risks, and low engagement among employees who feel the company is unpredictable and acting against them.

Handling disciplinary action correctly requires a clear, consistent procedure that applies fairly to all employees. That’s not to say that every behavior should have the same consequences. But your policy should clearly state:

• What behavior is expected of employees
• What behavior is unacceptable
• The consequences and process for handling bad behavior in the workplace

Whether you’re dealing with minor tardiness or more severe misconduct, a proper disciplinary procedure ensures compliance with legal standards. It also fosters a culture of fairness, positivity, and accountability in your organization.

Let’s look at appropriate disciplinary procedures for various infractions and how to manage the process effectively.

What Is a Disciplinary Procedure?

A disciplinary procedure is a formal process for addressing and correcting problematic behavior within an organization. It's a structured approach to enforcing key rules and maintaining order, so that all employees are treated fairly and consistently when issues arise.

However, not every company implements a disciplinary procedure. There are several reasons for this:

• Informal Structure: Smaller companies may operate informally, relying on a hierarchical, emotionally-driven command structure. But this approach can be unhealthy and often creates a dysfunctional manager-employee dynamic, where discipline is executed more like an angry parent scolding a child. For example, if an employee is late, a manager might resort to guilt-tripping rather than applying a consistent corrective measure.
• Fear of Harshness: Other employers may avoid disciplinary procedures out of fear of being too harsh. This concern isn't entirely unwarranted. Improper disciplinary actions have led to significant cultural and legal troubles for many organizations. However, forgoing a formal process altogether can (ironically) lead to the same dysfunctional outcomes. Without clear guidelines, misconduct and problem behaviors can fester, resulting in passive-aggressive environments that erode company culture from within.
• Lack of Necessity: Sometimes, the absence of a disciplinary procedure stems from a simple lack of knowledge or necessity. Perhaps a company has never faced significant issues that required formal intervention, so they haven't developed a standard process. However, it's best to have a plan in place before problems arise, rather than scrambling to figure it out when it becomes urgent.

Methods for Company Discipline

Disciplinary procedures can generally be categorized into two main methods: progressive and positive.

• Progressive Disciplinary Procedures: Progressive discipline involves a series of escalating steps designed to correct an employee's behavior. Each stage becomes increasingly severe if the behavior persists. While not all steps may be necessary in every situation, the principle is that the consequences should escalate with repeated infractions until the desired behavior change is achieved. Some companies try to avoid an explicitly punitive approach because of the belief that it lowers morale.
• Positive Disciplinary Procedures: Positive discipline focuses on corrective action that is not necessarily punitive in nature. The goal here is to find the facts, help employees identify their mistakes, and work together to fix the problems. Although the framework might resemble a progressive approach, the key difference lies in its execution — it's about guiding employees toward improvement rather than punishing them. Some find a positive approach to disciplinary action preferable because it prevents hard feelings between managers and employees.

Why Are Disciplinary Procedures Important?

Disciplinary procedures aren’t just about enforcing rules. They help ensure fairness, maintain legal compliance, and foster a positive work environment. By having a clear and consistent approach to discipline, you can protect your organization from potential legal issues while also promoting a culture of accountability and respect.

Ensure Consistency and Decrease Bias

A well-defined disciplinary procedure ensures that all employees are treated fairly and consistently. It allows you to make clear, objective decisions about how to handle problematic behavior. Without a process, discipline becomes subjective — left to the discretion of managers. This can easily lead to bias and unfair treatment, creating an environment of distrust. It may even increase attrition.

Avoid Legal Trouble

Having a formal disciplinary procedure in place also minimizes legal risks. It provides a clear record of the steps taken to address an issue, which can be critical if the company ever faces legal scrutiny in this area. Properly documenting disciplinary actions demonstrates that the organization acted fairly and within legal boundaries. This reduces the risk of wrongful termination lawsuits and other legal complications.

Give Employees a Chance for Defense

A formal disciplinary procedure also gives employees an opportunity to defend themselves. This is an important aspect of fairness and transparency in the workplace. Giving employees a chance to explain their actions (or offer mitigating circumstances) fosters a culture of trust and respect. Everyone wants a chance to explain their side of the story, and offering that (in the form of a hearing or formal meeting) demonstrates your investment in your employees.

Moreover, it allows you to consider all perspectives before making a final decision, which can lead to more informed and balanced outcomes.

When To Use Disciplinary Procedures

Not every instance of misbehavior requires the full breadth of a disciplinary procedure. However, there are a certain key categories of behavior which do apply here:

Misconduct

When employees break company rules or don't follow proper procedures, disciplinary action may be needed. This can include minor infractions like browsing personal websites during work hours, using company resources for personal tasks, bringing food into a meeting, etc.

Though these may seem trivial, consistently ignoring them can undermine workplace standards. However, most minor instances of misconduct only require a verbal warning.

Lateness or Absence

Disciplinary procedures also apply to attendance issues. If an employee is a few minutes late or misses an entire shift, they can severely disrupt workflow. Of course, the consequences may vary based on the severity.

For instance, showing up a half-hour late may only require a verbal warning. However, a no-call/no-show situation often warrants more serious action (even immediate dismissal in some cases).

Lying or Fraud

Any form of dishonesty, such as time theft, falsifying documents, or lying for another employee, should trigger serious disciplinary measures. Most of the time, dishonesty is grounds for termination. This behavior can severely damage trust and integrity within the company. An organization that retains an employee they cannot trust is merely paying for a major liability. At the very least, this behavior should trigger a written warning.

Criminal Behavior

Of course, criminal behavior within an organization shouldn’t be tolerated. However, even criminal activities that occur outside of work can be grounds for disciplinary action. This is especially true if they violate company policies or affect the employee's ability to perform their duties.

For example, if an employee whose primary duty is to drive or operate machinery gets a DUI, they might face termination (or demotion to another position). In any case, if the crime the employee committed casts doubt on their ability to perform in their role or causes issues with the company (especially in a public facing role), you can usually take disciplinary action.

However, this may vary based on several factors (location, industry, circumstances, etc.). Check your local laws or consult a lawyer experienced in employment law to be sure.

Threats, Violence, and Sexual Harassment

These are among the most serious offenses and should typically lead to suspension or immediate dismissal. However, you’ll want to conduct a thorough investigation to determine the severity of the incident, especially if there’s a history of conflict between employees.

What’s more, instances like these almost always require legal action. Be sure to seek legal counsel before this occurs, and develop a strategy within your disciplinary procedure so you know what to do. This will help you avoid legal trouble for negligence should anyone in your workforce be convicted of a crime.

NOTE: This also highlights the importance of conducting background checks on every candidate before hiring them. Should an instance of violence or sexual harassment occur, you don’t want to be responsible for allowing a potentially dangerous person into your workplace.

When NOT To Use Disciplinary Action

While disciplinary procedures are crucial for maintaining order, there are situations where formal action isn’t the best approach. Sometimes, a gentler approach (or an entirely different process) is more effective.

Here are a few instances to consider:

• When a Verbal Warning Is Enough - Sometimes, a simple conversation can resolve a problem before it escalates. A verbal warning allows you to address the issue and understand the root cause without creating a formal record. Resolving the issues in a non-threatening, peaceful way is often better for everyone involved.
• Personality Issues - Disciplinary action isn’t the answer for personality conflicts or traits that don’t violate company policies. For example, if an employee talks loudly, isn’t very communicative, or doesn’t engage in optional activities — these issues are better addressed through open, compassionate discussions (rather than formal discipline).
• Very Minor Infractions - What counts as a minor infraction varies by organization (and even department). In some cases, arriving a minute or two late may not warrant disciplinary action, especially if it doesn’t disrupt workflow or cost the company anything. However, in industries where timing is critical, even small delays can have a big impact. It’s important to assess whether the infraction is truly minor within the context of your business before deciding on a course of action.
• Poor Performance: Broadly, misconduct may also include poor performance (i.e. not hitting key performance metrics). However, the process for improving performance is best not handled in any way resembling punishment. For instance, if someone on the sales team fails to bring the required amount of deal value into the pipeline one month, a write up or suspension isn’t a good way to correct it. It may even be illegal in some cases. Instead, these issues are more aptly handled with a performance improvement plan (PIP).

The Ideal Disciplinary Procedure in 5 Steps

A clear disciplinary procedure helps ensure consistency and fairness in the workplace. Here’s a five-step approach to managing employee discipline effectively:

1. Verbal Warning

Though less formal than a written warning, an initial verbal warning should still be documented in the employee’s file to ensure consistency and fairness. Verbal warnings need to be clear, specific, and directly tied to company policies, setting explicit expectations for improvement.

This step also allows managers to engage in a constructive dialogue, addressing not just the behavior but also any underlying issues. Perhaps the employee has a good excuse, or misunderstood a rule, and no further action is needed. Otherwise, they may be struggling with something but simply haven’t asked for help to solve the problem.

TIP: The employee typically doesn't need to sign a verbal warning. Documenting the warning simply allows the manager to prove that it was given prior to the formal written warning.

2. Written Warning

If the behavior persists after a verbal warning, the next step is to issue a written warning (sometimes called a “write-up,”). This formal document outlines the specific issue, references relevant company policies, and clearly states the consequences if the behavior continues.

The process of written warnings may vary depending on company policy — some organizations follow a "three write-up rule," where multiple written warnings precede more severe actions like suspension or termination.

In any case, the written warning should be detailed, including specific examples of the problematic behavior as well as expectations for improvement. This clarity helps prevent misunderstandings and provides a solid foundation for any future disciplinary actions.

It's important that the employee signs the written warning to acknowledge receipt. However, their signature doesn't necessarily indicate agreement. This step is crucial for both transparency and legal protection, making sure there’s a clear record of the steps taken to address the issue.

3. Hearing (Sometimes)

In some situations, especially where employees have legal protections against terminations, a hearing may be required before taking further disciplinary action. This is often the case in non-at-will states (states where you must have a legally justifiable reason for firing someone) or for public employees.

A hearing provides due process, so the employee can present their side of the story. It serves as a safeguard against wrongful termination and helps the organization maintain fairness and transparency in disciplinary procedures.

During a disciplinary hearing, carefully document all statements and evidence presented. This not only protects the company legally but also ensures that any decision made is based on a thorough and unbiased review of the facts. The hearing is an opportunity to address any misunderstandings, consider mitigating factors, and ensure that the disciplinary process is conducted with integrity.

NOTE: The employee may also have the right to bring a witness to support their case. Also, if the employee fails to attend the hearing, this absence could potentially be grounds for termination, depending on the circumstances and company policy.

4. Suspension

For serious infractions, a suspension is often the next step, usually paired with a final written warning. This action underscores the gravity of the situation, communicating to the employee that the organization will no longer tolerate their behavior, and that something must change immediately.

Suspensions are typically unpaid to highlight the seriousness, as the employee is given one last chance to correct their actions before they are terminated. It also gives the organization time to assess the situation and plan further steps if necessary.

As always, it's important to thoroughly document this near-final step in the disciplinary procedure with:

• A clear outline of the steps that have led to the suspension
• The specific changes expected from the employee upon their return
• Consequences for any further infractions

This is why a final written warning is best used in conjunction with suspension. However, suspension is an optional final step. In some cases, a final written warning may be the next step after an initial (or two) written warnings. In any case, there should be a clear next-to-last step in your disciplinary procedure just before termination.

5. Termination

Termination is the final step in the disciplinary process, reserved for the most severe or repeated violations.

At this stage, it's essential to be firm and confident in your decision, which should be supported by a well-documented process leading up to this point. At the same time, your disciplinary policy should outline which behaviors constitute immediate termination (such as violence or sexual harassment). This will support your decision should you need to fire anyone on the spot.

In some cases, conducting an exit interview can provide closure and valuable insights, but it's important to approach it with caution. The employee may be upset or bitter, so while feedback can be gathered, it may not always be constructive or reflective of their true experience.

By following these steps, organizations can handle disciplinary issues in a structured and fair manner, ensuring that all employees are treated consistently and with respect.

Tips for Managing Disciplinary Procedures

Effectively managing a disciplinary procedure requires clear documentation, consistent policies, and the right tools. Here are some essential tips to help you manage these procedures with confidence.

Create a Disciplinary Policy (And Make It Accessible)

A well-defined disciplinary policy prevents bias and ensures consistency. The first step to handling employee discipline well is to create this policy — which will require careful thought (and legal counsel). This policy should include clear guidelines for expected employee behavior, unacceptable actions, and clear consequences. It should also outline a clear disciplinary procedure (in the form of a standard process) for managers to execute.

Once created, all related policies and procedures should be easily accessible to everyone. Allowing employees to reference this policy helps prevent many infractions and can make it harder for anyone to claim ignorance.

Document Everything

Thorough documentation is key to managing disciplinary procedures effectively. Even verbal warnings should be noted in the employee’s file. Written warnings should include the employee's signature, preferably in electronic form. As always, documentation should be:

• Specific and Clear: Avoid vague language; detail the issue and reference specific policies.
• Connected to Policy: Clearly show how the employee’s actions violated company rules by connecting specific infractions to sections within your disciplinary policy or code of conduct.
• Not Personal: Focus on behavior, not personal traits.
• Evidence-Based: Include any relevant documentation, like emails or timestamps.
• Tracked: Maintain a consistent record of all disciplinary actions in employee files.

This not only protects against legal issues but also provides a clear narrative that proves the discipline is based on policy, not bias.

Train Managers

Proper training for managers is essential to ensure fair and effective disciplinary actions. While a well-documented procedure can help you avoid legal trouble and achieve consistency, how you handle the situation (as a human) matters.

Managers should be aware of potential discrimination issues, avoid passive-aggressive behavior, and maintain professionalism in all interactions. Their tone and demeanor can greatly impact how discipline is perceived and accepted by employees. Training in this area may consist of role-play scenarios or videos demonstrating the preferred outcome.

Prevent Disciplinary Action Through Training

Investing in training programs (such as sexual harassment training and conflict resolution), can help prevent behaviors that require disciplinary action. That’s why training during onboarding and throughout the employee journey is crucial. It’s important to ensure that employees have the tools and knowledge needed to succeed before holding them accountable for certain actions. In some cases, training like this may be required by law.

Use the Right HCM Software

To handle any disciplinary process at scale, you need the right HR software. At minimum, your HCM should:

• Store employee handbooks, codes of conduct, and disciplinary policies for easy access.
• Guide the disciplinary process to ensure no steps are missed.
• Allow for comprehensive documentation and review of all disciplinary actions.
• Support employee growth by improving one-on-one meetings and promoting timely training.

With Criterion, you gain an HCM platform that’s built with real HR professionals in mind. We streamline processes and provide you complete access to all data and reports, so you can manage your workforce like never before. Plus, with several AI-powered HR features, we do the admin tasks for you, so you can do the work that requires an authentic human touch.

Final Thoughts

Disciplinary action is vital for upholding company standards — but how you approach the process determines your success. By developing a clear and consistent disciplinary procedure, you can ensure fair treatment and address problematic behaviors without damaging relationships.

But in order to manage these processes efficiently, you need more than just the right tools. You need a partner in HR.

Criterion HCM puts people at the center of all your workflows. Create custom processes and training solutions, generate insightful reports, and manage all employee information in a single, unified database. Plus, you get a dedicated account manager that knows your company’s unique processes and needs — so you have the support you need to tackle any challenge that comes your way.

Book a demo to discover how Criterion can enhance employee performance and empower your HR team today.