Fourth, remember that you have more discretion when dealing with conduct infractions than you do when dealing with performance or attendance problems. Conduct that is egregious may be grounds for immediate dismissal, otherwise known as a ‘‘summary dismissal.’’ The logic is simply this: If an employee engages in gross negligence or is caught using drugs on company premises, you’ve probably got a clear shot at a quick and defensible termination.

On the other hand, courts and juries expect companies to provide
the full span of progressive discipline to an employee who is having difficulty performing the duties of the job or who is excessively absent or tardy. The logic here? You hired him, so if he’s not doing the job the right way, you should have been more diligent in the selection process. Now you’re obligated to help the individual improve his performance to meet minimum company expectations.
Ditto with the employees who suffer from excessive absenteeism or
tardiness: They may be going through a difficult period in their lives, and the company is expected to exercise restraint before removing
them from the job.

The steps that your company takes in providing progressive discipline that may ultimately result in a termination for cause are
up to you: Most companies apply a three-step system that includes
a verbal correctionmeeting, a written warning, and then a final written warning before termination. These steps are part of your written policies and past practices.

As a rule of thumb, follow the paradigm that you’ve established
unless doing so would make you, the employer, appear irresponsible.
In other words, don’t give employees three chances to steal, embezzle, or punch their bosses in the nose. Those, again, are
conduct infractions, and no court or jury would expect a company
to provide progressive discipline in such cases.

Taken From : The Hiring and Firing Quention and Answer Book