Progressive discipline is a step-by-step process for addressing employee performance or conduct problems, escalating consequences only when earlier steps fail to produce improvement:

  1. Verbal warning (documented with date): A private conversation identifying the specific behavior, its impact, and the expected standard. “We talked about order accuracy — four errors this week. The expectation is 95%+ accuracy. What’s happening?”

  2. Written warning (signed by both parties): A formal document restating the issue, referencing the verbal warning, and specifying consequences. “If order accuracy does not improve to 95% within two weeks, we will need to consider whether this role is the right fit.”

  3. Final warning: A last-chance document making clear that the next occurrence results in termination. Sometimes accompanied by a performance improvement plan (PIP) with specific, measurable goals and a timeline.

  4. Termination: If improvement doesn’t happen after reasonable opportunity and clear communication, the employment relationship ends.

Why it matters

Progressive discipline serves three purposes:

Fairness: Employees deserve clear feedback and a chance to improve before being fired. Most performance problems are fixable with specific feedback and accountability.

Documentation: Each step creates a written record. If the terminated employee files a wrongful termination or discrimination claim, the documented progression of warnings — showing legitimate, performance-based reasons for termination — is the business’s primary defense.

Consistency: A documented system ensures all employees are treated the same way. Without it, discipline depends on the manager’s mood, which creates both legal risk and team resentment.

Exceptions

Serious misconduct — theft, violence, harassment, intoxication on the job, safety violations that endanger others — warrants immediate termination without progressive steps. Document the incident and the reason for skipping the progression.

See Managing Employees for the Long Term and At-Will Employment.