This process satisfies a legal requirement to terminate justifiably. It also provides the employees with fair and equal treatment to understand performance issues and be provided with an opportunity to improve over a reasonable and specified period of time.

Documented verbal warning
Where the gap in job performance is clearly explained to the employee as well as the potential outcome should performance not improve.

Formal written warning:
Outlining specific performance issues that need to be addressed and the potential outcome of continued poor performance.

Final written warning or Suspension:
Outlining specific performance issues again, re-iterating the severity of the situation. The employee must clearly understand that his/her job is in jeopardy.

Suspension or Termination:
Depending on the severity of the situation you may elect to suspend to allow one additional step in the process.

Documentation Components of disciplinary action:

1. Expected Performance Standards of the company
2. Current performance of the employee or company policy breached
3. Cause of gap
4. Action plan taken
5. Follow-up date to evaluate the employee.
6. Consequences Statement if the employee doesn't improve or correct the problem
7. Employee signature to attest the employee has been meet

Remember: If you fire an employee and a lawsuit is brought against your company, you should have adequate backup documentation and proof as to the rationale and reasonableness for your activities. Continuous employee appraisals that show poor performance can be part of the documentation. The safest approach to firing an employee is to make sure you have a reasonable and legitimate business reason adequately documented.
This is a list of some reasons that should generally stand up to legally fire an employee:

Consistent non-performance. If an employee is unable to do a competent job, and you have given the employee a reasonable opportunity to succeed, then termination will often be seen as appropriate.

Breach of company policy. If you have established clear, legal and consistent policies, and the employee clearly has violated them in a meaningful way, then termination is appropriate.

Absenteeism or tardiness. Continual absence or tardiness jeopardizes the ability of an employee to complete important tasks. If absenteeism or tardiness is continual and unexcused, then termination may be justified.

Falsified information. If employees lie on their employment applications or resumes as they list fake degrees or jobs they’ve never held termination of the employee is usually warranted.

Physical violence. All employees are entitled to a safe work environment, and employers have a duty to take reasonable steps to provide for that.

Drugs and alcohol. Depending on the circumstances, being under the influence at the office may be grounds for immediate suspension or termination. Some companies offer treatment and rehabilitation counseling as an alternative to immediate firing.

Illegal acts. If you find the employee committing illegal acts, such as theft or embezzlement, immediate termination is justified. Before you fire the accused employee, however, make sure you know all of the facts and have gotten the employee’s side of the story.