This section deals with problems with employees. Inevitably from time to time management will need to take some form of disciplinary action against unsatisfactory performance or behaviour. Employers that do this fairly and consistently will gain their employees’ respect and thus reduce the risk of future poor performance.

1. Employers should establish fair and open written procedures for the times when disciplinary action may be necessary. Disciplinary action should be commensurate with the offence committed. At each stage in the process employees should have the opportunity to appeal to a higher level of management (where available).
   
2. Except in cases of serious misconduct justifying summary dismissal as described under the Employment Ordinance, employees with poor performance or misconduct of any kind should have sufficient opportunity and reasonable time to remedy their shortcomings prior to any dismissal.
   
3. Summary dismissal requires thorough investigation, taking full consideration of the extent of the consequences to all concerned. It should be approved by the manager to whom the employee’s supervisor reports, i.e. at least two levels up. Where appropriate employers should make use of their statutory right to suspend an employee during the investigation. Benefits that have accumulated under pension or provident funds should be handled in accordance with the legal requirements and the agreed terms of employment. Benefits should not automatically be withheld as a result of a single and misguided act.
   
4. In the event that dismissal does occur, it should be undertaken in a confidential and sensitive manner and the employee granted full contractual notice and all payments to which he or she may be legally entitled.
   
5. Employers should be consistent in their approach to discipline and treat all cases of the same offence in the same way. Not doing so will give mixed messages to employees and may also affect how, for example, a Labour Tribunal may view an employee’s appeal.