If Your Employee Handbook References Progressive Discipline, You Better Use Progressive Discipline.
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Mr. Stagg worked for Vintage Place Inc. for approximately 14 months, during which time he struggled with tardiness and absenteeism. Vintage Place Inc. employee handbook contained a progressive-discipline policy, which provided that Vintage's employee[s] may be disciplined according to a five-step schedule. The schedule permitted an oral warning for the first unexcused absence, a written warning for the second, a three-day suspension for the third, a ten-day suspension for the fourth, and termination for the fifth. As a result of his attendance problems, Mr. Stagg had received both an oral and written warnings, and a three-day suspension, but was fired before receiving a ten-day suspension.
This summer, the Minnesota Court of Appeals reversed an unemployment law judge’s determination an employee was precluded from receiving unemployment benefits because he was terminated for misconduct. In Stagg v. Vintage Place Inc. A09-949 (Minn. Ct. App. 2010) (pdf) the Court of Appeals ruled the employee, “could have reasonably expected Vintage to follow the disciplinary steps, and because Vintage skipped the fourth step of a ten-day suspension, relator's absenteeism does not amount to employment misconduct precluding eligibility for unemployment benefits.”
I have blogged about this in the past, you don’t want to include specific discipline procedures in an employee handbook, because, “Minnesota courts (pdf) have decided when an employee handbook includes specific disciplinary steps to be taken prior to termination, an employee’s “at-will” status is modified and some job security is presumed.”
What should you do?
1) If you have a specific discipline procedure in your employee handbook and you are currently dealing with a problem employee, then you better follow your procedure.
2) If you have a specific discipline procedure in your employee handbook and you do not have a current problem with an employee, then this would be a good time to update and revise your employee handbook.
