What is a progressive discipline policy?
A progressive discipline policy is a workplace policy that sets out a structured, escalating process, from a verbal warning through to termination, for addressing performance or conduct issues that don't improve.
When should your company use one?
A progressive discipline policy is worth having as soon as a company has managers making disciplinary decisions, since it keeps those decisions consistent across teams and gives employees fair warning before termination. It also protects the company by creating a documented record if a termination is ever challenged.
Free progressive discipline policy template
Use the template below as your starting point. It covers the four-step escalation process and when a company can skip straight to a final warning, and it's ready to copy into your employee handbook.
Purpose
This policy gives managers a consistent, documented process for addressing performance and conduct issues, and gives employees a fair chance to correct course before more serious consequences follow. Consistent application protects both the employee and [Company Name].
Scope
This policy applies to all employees, other than those still in an initial probationary period, who are covered by the terms set out in their offer letter. It covers performance issues, such as missed targets or repeated errors, and conduct issues, such as attendance problems or policy violations, that don't warrant immediate termination.
Policy elements
Progressive discipline moves through a series of steps, each one more serious than the last, giving the employee a clear opportunity to improve at every stage. [Company Name] may start at a later step, or skip steps entirely, when the severity of the issue warrants it.
Step 1: Verbal warning
For a first, minor issue, the employee's manager discusses the concern with them directly, explains the expected standard, and agrees on a timeframe for improvement, typically [X] days. The manager keeps a brief written note of the conversation for their own records, even though this step is informal.
Step 2: Written warning
If the issue continues or a new issue of similar weight arises, the manager issues a formal written warning, with HR involved in drafting it. The warning describes the specific issue, references any prior verbal warning, sets clear expectations, and states the consequences of continued non-improvement. The employee signs to confirm they received it, not that they agree with it.
Step 3: Final written warning or suspension
If performance or conduct still hasn't improved, [Company Name] issues a final written warning, and may pair it with a period of unpaid suspension of up to [X] days depending on severity and local law. This step makes clear that termination is the next step if the issue isn't resolved.
Step 4: Termination
If the employee does not meet the expectations set out in the final written warning within the agreed timeframe, [Company Name] may terminate their employment, following the process described in the company's termination policy and applicable local law.
Conduct that skips steps
Some conduct is serious enough to justify skipping earlier steps entirely, including:
- Theft, fraud, or falsifying company records
- Violence, threats, or harassment toward a colleague or client
- Serious breaches of confidentiality or security policy
- Being under the influence of drugs or alcohol at work
In these cases, [Company Name] may move directly to a final written warning, suspension, or termination, after an appropriate investigation.
Documentation and appeals
HR keeps a record of every step taken under this policy in the employee's file. An employee who disagrees with a disciplinary decision may raise it with HR or a more senior manager within [X] days, in line with [Company Name]'s open door policy.
How to customize the template
Fill in the timeframes between steps and any suspension length that fits your company's culture and legal requirements, and adjust the list of conduct that skips steps to reflect the risks specific to your industry.
Legal and practical considerations
Termination law varies by jurisdiction, and some places require specific documentation or notice periods before an employee can be dismissed for performance or conduct, so have this template reviewed by an employment lawyer for the regions you operate in. Keep every step documented in the employee's file, since a well-documented process is often what protects the company if a termination is ever disputed.
Rollout checklist
Once the template is customized, a few practical steps make sure it's applied consistently:
- Fill in the timeframes between steps and any suspension length
- Have the policy reviewed by an employment lawyer for your jurisdiction
- Add it to your employee handbook and internal policy library
- Train managers on how to deliver each step consistently and document it
- Communicate it to all employees
- Review it if local employment law around discipline or termination changes
