Disciplining Employees Other Than Dismissal
Whilst sanctions imposed on employees should not be used to reflect management frustration, but rather to render the employee a useful member of staff, it may still be necessary at times to express your displeasure to generate improvement. Whilst warnings are the commonest such sanction, others may be considered more suitable in certain circumstances.
For conduct-based problems, a reprimand may be considered all that is necessary for improvement in senior employees. Alternatively, you may consider that fines or suspension without pay are most appropriate. You must exercise great care in either case since they are both amount to making deductions from an employee's pay which may only be carried out if there is clear prior written agreement by the employee.
For problems regarding the inherent capability of the employee, it may be appropriate (depending on the scale of your business) to consider demotion (this should be provided for in the employment contract), transfer to a different site or the offer of alternative employment. In such cases document the variation(s). It is generally safer to use only those disciplinary powers specifically reserved in the employment contract in order to avoid constructive dismissal and discrimination claims.