Similarly, if one of your employees is written up for substandard
customer service but then really turns her performance around, you have the right to add another document to the file recProgressive
ognizing this new achievement. An example of this kind of recognition
can be found in Appendix N.

Is there a legal downside to such positive follow-up letters? There could be. By formally documenting improvement and then shortly thereafter terminating the employee for substandard job performance, you may run the risk of losing a wrongful termination
claim. For example, a plaintiff attorney representing the exemployee
might argue that your documents were inconsistent and ambiguous. ‘‘After all, the follow-up letter neutralized the prior disciplinary warning, and then you terminatedmy client anyway’’ goes
the typical line of reasoning.

Still, good management is all about risk management—not about risk avoidance. You can’t manage by fear of lawsuits. Instead, you have to find that fine balance between protecting the company and motivating your staff. Before you implement such a policy, discuss
your options with outside counsel. Your decision’s motivational impact may help withstand union organizing campaigns and lower turnover. However, depending on the state in which your company sits, such a policy may have more limitations from a liability standpoint than you’re willing to assume.

Taken From : The Hiring and Firing Quention and Answer Book