This is a very common question among line managers. In general, we all have a need to justify our opinions. If we write that a staff member displays disrespectful conduct toward clients, commits excessive errors when performing routine tasks, or takes too many sick days off, our perceptions shouldn’t be challenged, right? Well, there are two sides to every story. It’s not uncommon for employees to attempt to re-create your version of history by providing their own version of events that led up to the written warning or substandard annual review.

So, should managers generally respond in writing to employee rebuttals? The short answer is No. Unless new information surfaces from the employee’s rebuttal, there is little need to justify your statements by chasing paper. Simply stated, you don’t want to keep going back and forth on paper as to who’s right and who’s wrong. The original document stands; the employee writes a rebuttal. Then both documents are placed into the employee’s personnel file. Period.

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In general, allowing employees to write rebuttals is a healthy employment
practice. First, it creates a more even playing field. Both sides have the opportunity to create a written record that they feel more accurately reflects events, and that type of communication should always be encouraged. Second, an employee rebuttal may surface new information that you didn’t know about. If it does, you’ll have the discretion to rewrite or destroy the warning you gave the employee originally. Third, if an employee is invited to write a rebuttal but fails to, it may be harder for the individual to challengethat warning some time in the future while sitting in front of a judge or arbitrator.

Taken From : The Hiring and Firing Quention and Answer Book