Effective Disciplinary Systems: Characteristics

Mature companies have advanced disciplinary systems, integrated with other aspects of managing the business like promotions, rewards and incentives sub-systems. Your company need not be huge and mature to have an effective disciplinary system. Just make sure that it has basic elements that conform with the requirements of the Labor Code. The following characteristics mirror requirements and good practices as reinforced by decisions of the Supreme Court.

Publish rules. Orient employees. Rules must be meaningfully communicated.

• Employees are continuously and positively reminded of policies, rules and regulations.  This is a most basic characteristic, which is also a legal requirement—that rules must be communicated to all employees.  The logic is that how can anybody violate a rule that he does not know exists.  Contrast this with the principle “ignorance of the law excuses no one”—this presumes that the law has been published prior to its enforcement.  Enforcement of rules in the workplace exacts a higher requirement, the burden is on the employer to prove that the employee has been informed of rules.

Do not discriminate. Enforce rules  in a consistent and uniform manner. Implement decisions speedily.

• This is one common weakness among supervisors and managers—the belief that just like most areas of management they can impose their own management or leadership style when implementing discipline.  Such differing styles of enforcing rules lead to charges of laxity, favoritism and inefficacy while also giving rise to employees’ sustainable legal charges of discrimination.  This is one area where every management representative must be consistent.  Also, decisions are handed down immediately to avoid charges of delay and “sitting on it”.

Implement actual investigation. Collect actual proof of wrongdoing. Confront employee before imposing discipline.

• More than just being concerned with legal requirements, this is also a logical one.  Management must show proof of a wrongdoing, and not for the employee to prove that he/she is innocent.

During the due process weigh extenuating or mitigating circumstances  vs. aggravating circumstances. Arrive at fair  decisions. Formulate reasonable penalties.

• It is a rule that given the same violation, there should be similar penalties but what if there are other circumstances.  Most companies with good disciplinary systems take into account these circumstances when imposing discipline.

Implement corrective or progressive discipline.

• Rules are clearly spelled out between minor and major offenses.  Employees who commit minor offenses are considered “rehabilitable”.  Depending on the objectives of the organization, some behaviors are seen as not so critical which when exhibited merit lesser penalties.  They impose progressively heavier penalties, from oral warning, to written warning to varying days of suspension until finally termination is inevitable.

Employ other behavioral interventions– counsel, coach, correct behaviors among errant employees.

• To show that the company has a human face, employees who have committed minor violations are subjected to counseling or coaching interventions.  Their performance at work is constantly monitored, not to evoke compliance but to motivate them to reform.

Observe due process at all times.

• If there is one area where most companies are weak at when imposing discipline and termination, this is in relation to due process.  There are minimum legal requirements in relation to due process.  These must be observed at all times. Look at Art. 282 of the Labor Code. (see my posting on this!)

Put an appeals system in place.

• Because of imperfections in due process, an appeals system allows the company to perfect the requirements of due process.  The employee is given a chance to elevate his/her case before a higher body (e.g. HR manager or Disciplinary Committee) who may be seen as more objective, and less detached in relation to the case.  Although it may delay the process of implementing rules, it allows the employee an internal recourse—a chance to be heard another time if he/she was not convinced the first time of the charges against him/her.  This lessens the probability of the employee lodging a case of illegal dismissal in court.

Extensively document all substantive and procedural disciplinary matters.

• Sometimes management disregards documentation of its disciplinary processes because of numerous factors.  When the case reaches the courts, the arbiter has no other recourse but to side with the employee because the employer must have the burden of proof.  How can the company prove the employee’s wrongdoing without extensive documentation?  It may also be good for management to  have a centralized database system for disciplinary information. Management should also compel supervisors  to document all cases properly.