Firing an employee over their first minor mistake can send the wrong message — it may hurt team morale, spark legal trouble, and even drive workers away. It’s one reason why progressive discipline is often considered the fairer, more constructive approach. Instead of jumping straight to termination, it provides a structured process with escalating steps to notify employees of issues and give them a chance to improve.
What you’ll learn
What you’ll learn
Key takeaways
- Progressive discipline is a step-by-step process of addressing employee misconduct or performance issues
- The approach encourages improvement rather than imposing immediate punishment
- Progressive discipline procedure moves from a verbal warning to a written warning, then escalates to a suspension (or final warning) where termination is the final step
- Implementation calls for creating a clear progressive discipline policy
For modern human resources practices, this emphasis on growth over punishment creates a strong, supportive workplace culture. In this guide, we discuss how to set up the progressive discipline process, when to use it, and why it’s worth considering for your business.
Core principles behind progressive discipline
The key pillars of progressive discipline include:
- Graduated response: Base disciplinary actions on the severity or repetition of a workplace issue
- Correction-focused: The primary aim is to improve an employee’s performance or behavior, rather than punish them
- Transparency and consistency: You inform employees how progressive discipline works. To prevent the perception of unfairness, apply it equally to everyone
- Legal defensibility: After several chances, if an employee doesn’t improve you have evidence showing that you acted reasonably and legally before ending their employment
When (and why) to use progressive discipline
Use progressive discipline when dealing with minor or mid-level misconduct and performance issues, such as:
- Turning in subpar work
- Skipping work without notice or a valid reason
- Refusing to follow instructions
- Regularly showing up late to work
When a minor workplace issue arises for the first time, coaching can often be enough to get an employee back on track.
Even after coaching, if a person repeats infractions multiple times, you can escalate your response by giving them a warning letter demanding positive change. If the problem persists after the warning, you can move to a more severe action such as suspension or even termination.
Include progressive discipline in your employee handbook and onboarding process. That way, before their first day new staff members will become familiar with the organization’s disciplinary process.
Why use progressive discipline?
Progressive discipline not only increases productivity but also boosts talent retention by correcting unacceptable workplace behavior and improving employee performance.
Additionally, for employees who don’t improve, progressive discipline lays the groundwork for justifiable termination. If a worker files a wrongful termination claim, it’s easy to show that you took reasonable steps to address underperformance or misconduct before ending their employment.
Setting progressive discipline: Key steps
There are four progressive discipline steps.
Step 1: Verbal warning (a conversation that counts)
A verbal warning is an informal, one-on-one meeting with an employee where you discuss a specific misconduct action or underperformance issue. After listening to their side of the story, explain your expectations and give feedback on how they can fix the problem.
Throughout the informal conversation:
- Stay calm and respectful
- Get directly to the point
- Focus on the misconduct or performance issue — not the person
While the warning is verbal, document the content of the discussion to establish that the meeting happened. Key details to record include:
- The date and time you gave the verbal warning
- The nature of the issue
- Next steps you discussed during the conversation
- Who was present at the meeting
Step 2: Written warning (putting expectations in writing)
If after a verbal warning a behavior or performance doesn’t improve, the next step is a formal written warning that includes:
- Details of the performance issue or misconduct action
- Expectations for improvement and how you will help them achieve it
- Timeframe for making changes or improvements
In your warning, use polite, nonjudgmental language. Focus solely on the issue and the way forward, not the employee’s personal traits.
Here’s an example to give you an idea of the language most employers use:
Written warning template:
[Your business letterhead]
Date:
To: [Employee name]
Position: [Employee job title]
Department: [Department name]
Subject: Warning letter
Dear [Employee name],
I’m writing to you about [performance issue/misconduct], which we previously discussed in a verbal warning on [date of verbal warning].
On [specific dates/times], [describe the factual details of the performance problems or misconduct action]. This does not meet the company’s expectations outlined in [policy name or employee handbook section].
We expect you to [describe the specific changes the employee must make to improve performance or behavior]. [If applicable, describe how the company will support the employee to meet expectations].
This is your [insert the number of warnings, e.g., first] warning letter. Failure to improve by [insert a date that provides a reasonable timeframe for improvement] will lead to more serious corrective action, up to and including termination.
If you have any questions or wish to respond, please reach out to me at [insert contact details] or reply in writing.
Manager
Name:
Signature:
Date:
Employee
Name:
Signature:
Date:
Step 3: Final warning or suspension
You can give a final warning if an employee fails to improve their performance or behavior by the deadline noted in your written warnings. The final warning letter follows the same format as written warnings, but with a few distinct details:
- Specify that the letter is a final warning. If the employee doesn’t improve within a particular timeframe, the next step will be termination
- List all the previous steps you took in the disciplinary process
This stage of the progressive discipline process may also include suspension with or without pay, depending on applicable labor laws, including the Fair Labor Standards Act (FLSA).
Note: For salaried employees (usually considered exempt under the FLSA), unpaid suspension is only allowed for serious misconduct. This applies to sexual harassment, workplace violence, infractions of safety rules, or drug abuse — not performance or attendance issues.
If you suspend an employee, clarify and document the following details:
- Why are you suspending the employee?
- When will the suspension start and end?
- Is the suspension paid or unpaid?
Step 4: Termination
Termination may be the next step if there is no improvement after the final warning or suspension is given. Letting an employee go can be tough. Throughout the termination process, you can fire someone gracefully by being polite and respectful.
Once you’re done, pull up their file in your HR planning and management software and record the date and reason for the termination. This provides documentation to legally and ethically defend your decision if necessary.
Best practices for documenting every step
Here are tips for maintaining reliable documentation throughout the progressive discipline process.
Keep records of all key information
To properly document the progressive discipline process at each step, record the following critical details:
- The nature of the misconduct or performance issue
- The date and time the misconduct or performance issue occurred
- The actions you have taken to address the problem
- The support you offered the employee to help them improve
- The employee’s response or comments
Use HR technology
A powerful HR solution like OnPay provides a secure, centralized place to create and file progressive discipline documents, such as warning letters. The software also comes with audit trails, giving you a clear, time-stamped history inside the platform of actions you take to address a disciplinary case.
Additionally, role-based access ensures that unauthorized individuals cannot tamper with disciplinary records. Only authorized managers can view or edit them.
Be consistent
If two employees commit the same type of misconduct or have similar performance problems, you should handle and document the cases in a consistent manner. In other words, follow similar steps and use the same level of detail when making disciplinary decisions.
Legal risks and how to stay compliant
Progressive discipline comes with several legal challenges.
Labor law violations
One of the biggest HR challenges is balancing compliance with workforce regulations. When using progressive discipline, be careful not to punish employees for issues protected by federal or state labor laws.
For example, repeated absences without advance notice may be legally protected under the Family and Medical Leave Act if they are due to a qualified medical reason. Additionally, disciplining an underperforming employee without accommodating their disabilities contradicts the requirements of the Americans with Disabilities Act.
To ensure HR compliance, double-check all applicable regulations before taking disciplinary action.
Discrimination claims
If you don’t equally apply progressive discipline across your company, you open the door to complaints of unfairness. When fighting a discrimination lawsuit, consistent implementation is not only fair but also a solid defense.
Not sure whether a disciplinary action could be considered discriminatory or unlawful? Consulting a labor and employment attorney can save you from incurring serious legal trouble.
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Building a fair, transparent policy your team can trust
A solid progressive discipline policy clarifies expectations and gives employees confidence that your disciplinary process is fair.
Key elements to cover in your policy include:
- A clear purpose statement: Why are you implementing the policy?
- The progressive discipline procedure
- The appeal process: How can an employee internally challenge a disciplinary action?
- Including theft, intoxication, violence, or safety rule infractions, what are other serious performance and conduct issues (not subject to progressive discipline) that may be grounds for immediate termination?
- How will you document every disciplinary step and action?
Once your policy is ready, share a summary in your onboarding software so from day one new hires know the rules and expectations. Most importantly, include it in your employee handbook so everyone can review the details.
Employers should be familiar with how progressive discipline works
Whether you’re an employer with years of experience or just opening your doors, letting workers go can be an unpleasant experience. That said, the concepts of progressive discipline can help ensure that you’ve done your due diligence. This way employees get the opportunity to put their best foot forward.
Modern HR software can streamline this process by centralizing documentation, automating approval workflows, and maintaining comprehensive audit trails that link disciplinary actions with payroll adjustments. This integrated approach not only saves time but also ensures consistency and compliance throughout the progressive discipline process. It gives both employers and employees confidence that procedures are being followed fairly and thoroughly.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.