Disciplining an employee isn’t easy, especially in a close-knit small business. But done right, discipline isn’t about punishment. It’s about addressing problems early, setting clear expectations, and helping employees improve, while protecting your business from legal and operational risks.
1. Start with Expectations and Communication
Before any formal process starts, prevention is key. Many disciplinary issues stem from misunderstandings or unclear expectations. Make sure:
- Each employee has a clear position description.
- Workplace policies are written, up to date, and easily accessible.
- Managers and supervisors are trained to raise issues early and constructively.
Regular feedback and check-ins are also important as they can often resolve issues before they escalate.
2. When an Issue Arises: Document and Assess
If an employee breaches a policy or isn’t meeting expectations:
- Record what happened (date, time, details, any witnesses).
- Check relevant policies or employment contract clauses.
- Stay objective: stick to facts, not assumptions.
3. Informal Discussion First
Not every issue needs a formal warning. For minor problems:
- Have a private, informal conversation.
- Explain the concern and invite the employee to respond.
- Agree on a solution and follow up.
Still take brief notes. If the issue continues, you’ll have a clear record that informal steps were taken.
4. Formal Disciplinary Process
If informal steps don’t resolve the issue, or if the matter is serious, a formal process is necessary. The best-practice approach is to:
a) Notify the Employee
- Clearly outline the alleged misconduct or performance issue.
- Inform them you’re commencing a disciplinary process.
- Provide reasonable notice of a formal meeting.
- Offer them the opportunity to bring a support person (as required by the Fair Work Act, s 387(d)).
b) Conduct a Disciplinary Meeting
- Present the concern and evidence objectively.
- Give the employee the opportunity to respond, ensuring you document their response.
- Listen, take detailed notes and keep a respectful, calm tone.
- Consider any mitigating factors such as personal issues and training gaps.
c) Decide on Action
After the meeting, assess all information and decide on the appropriate outcome. Options might include:
- Verbal warning,
- First, Second, First and Final or Final written warning (dependant on prior formal processes undertaken with the employee).
- Additional training or support.
- Performance Improvement Plan (PIP).
- Termination of employment (where deemed appropriate due to the severity of the employee’s substantiated conduct).
Whatever you decide, it must be proportionate, fair, and documented. Employers must follow procedural fairness under the Fair Work Act 2009 (Cth) and applicable Modern Award or enterprise agreement. For serious matters, skipping steps can risk an unfair dismissal claim, even if an employee breaches a policy or isn’t meeting expectations.
5. Follow Up and Monitor
Discipline doesn’t end with a warning. You should:
- Follow up on any improvement plans.
- Provide support if needed.
- Keep documentation confidential and secure.
6. What About Serious Misconduct?
If the issue is serious misconduct such as theft, violence, or a serious WHS breach, you may:
- Suspend the employee (on pay) while investigating.
- Conduct a prompt and fair investigation.
- Where the alleged conduct is substantiated on the balance of probabilities, terminate the employee under the Fair Work Regulations 2009 reg 1.07. Depending on the severity of the employee’s conduct and whether it is deemed reasonable, there is the ability with serious misconduct terminations to supply an employee with no notice.
Still, a fair process must be followed, even for dismissals.
7. Don’t Do It Alone
Disciplinary matters can get complicated quickly. A poor process can lead to:
- Unfair dismissal or general protections claims.
- Stress and conflict in your team.
- Damage to your culture and reputation.
That’s why it’s a good idea to:
- Have clear policies and procedures in place, ensuring employees are aware of them in their entirety.
- Get HR advice before taking action.
- Train managers on performance conversations and documentation.
Discipline is not about punishment, it’s about setting boundaries, supporting improvement, and protecting your team and business. When handled fairly and consistently, discipline can be a powerful tool for building a respectful, high-performing workplace.
If you’d like to learn how ProcessWorx can assist with Human Resources or Work Health & Safety, please contact us on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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