Need Advise ASAP - Discipline Issue

franfields

We are an ad agency. One of our employees neglected to have something approved by the client (well known policy) before placing it and the client refuses to pay, costing us $8,000. They also neglected to place 9 others which will cost us a loss of revenue and loss of confidence with the clients.

We want to put him on probation rather than fire him. He is a 15 year employee.

Here are the questions for which I need advise:

1. Can we demote him and lower his pay until he can show us his performance is up to his current positon?
2. Can we require he pay back the $8,000?

I am in Arkansas.

Janet

You'll need more advice than just mine, but I don't believe you can force him to pay back the $8,000. Demoting him, I would think, is discretionary.

Sunny

I agree that you probably can not require him to pay the $8,000 uness you have a written policy stating that you will take this action in this situation and/or have similarly required employees who made costly mistakes in the past to pay. And even then I would get legal advice before asking for payment. Do you have employment contracts or an employe handbook or any written policy manual? If not you will have to depend on your past practice.

I would certainly put the entire incident in writing and have your employee sign-off to agree on the facts. Then I would take an appropriate disciplinary action - up to and including discharge. This should be your call. Is this the first time this employee has made serious mistakes? His record can be a guide to you but you should have the right to take action when an employee makes mistakes that threaten your business.

franfields

Thanks to those who responded for the advise.

We are going to document the problems, put him on probation, and have him sign off on that. Since his negligence of duty is considered significant, we are contemplating demotion and decrease in salary to within the range of the downgraded positon.

We will not be asking for reimbursement of the $8,000. Although his manager really wants to do that, I convinced him it is not appropriate. The loss is a cost of doing business.

Any other advise is welcome.

Paul in Cannon Beach

Are you satisfied that you know why a fifteen year employee suddenly starts blowing it? That would be my first question. Fifteen years is a lot of time and should earn him a bit of slack. However, what caused this neglect? Has it been addressed?

Discipline should be aimed at improving behavior not punishing the employee. Some of what you have written sounds like the manager is interested in punishment.

[email]paulknoch@hotmail.com[/email]

bunny

I would want to make sure there isn't something wrong perhaps physically with this 15 yr employee especially if he has been a good employee all along. He might need some help.

franfields

In response to Paul and Bunny, his manager said he has been working with him for the last six months to try to motivate him. It just isn't working. The manager wanted to get his attention.

I was not told of the situation until this week. Now that the manager has come to me, I can begin to coach him on handling the performance issue. I have convinced him not to demote or cut pay.