Resources

HR Glossary

Disciplinary Action

What is Disciplinary Action?

Disciplinary action is a formal step an employer takes when an employee breaches company policy, underperforms, or engages in misconduct. For employers, it matters because a fair and documented process can help resolve workplace issues, support performance standards, and reduce the risk of disputes or unfair dismissal claims.

Last updated Oct 27, 2026

What does disciplinary action mean?

Disciplinary action refers to the steps an employer takes to address employee misconduct, poor performance, policy breaches, attendance issues, insubordination, harassment, dishonesty, or other workplace problems. It can range from a verbal warning to written warnings, suspension, a performance improvement plan, demotion, or termination, depending on the seriousness of the issue and local rules.

For employers, disciplinary action should not be handled emotionally or inconsistently. It should follow a clear process, be based on evidence, and be documented properly. The employee should usually understand what the issue is, what standard was breached, what improvement is expected, and what may happen if the issue continues.

A disciplinary process is often described in the employment contract, employee handbook, code of conduct, or HR policy.

Why disciplinary action matters for employers

Disciplinary action matters because it helps employers manage conduct and performance fairly. Without a structured process, managers may respond differently to similar issues, which can create confusion, employee distrust, or legal risk.

For SMEs, documentation is especially important. If an employee is later terminated and challenges the decision, the employer may need to show that the issue was genuine, the process was fair, and the decision was not discriminatory or arbitrary.

This is especially relevant for remote and cross-border teams. A company in Singapore, Australia, Hong Kong, or the US managing employees in Indonesia, the Philippines, Malaysia, Vietnam, or Thailand should not assume that its home-country disciplinary process is enough. Local employment rules, due process requirements, warning practices, and termination procedures may differ.

For example, Philippines guidance on termination due process includes written notice, opportunity for the employee to respond, and a written decision in relevant cases, as reflected in the Supreme Court E-Library copy of DOLE Department Order No. 09, Series of 1997.

Common disciplinary actions

Common types of disciplinary action include:

Action

Typical use

Verbal warning

Minor first-time issue or informal correction.

Written warning

Repeated issue, policy breach, or documented performance concern.

Performance improvement plan

Structured improvement process for performance gaps.

Suspension

Serious issue requiring investigation or temporary removal from work.

Termination

Serious misconduct, repeated breaches, or unresolved performance issues, subject to local rules.

Note: The appropriate process and available disciplinary measures may vary by country, employment contract, employee handbook, collective agreement, and the seriousness of the issue. Employers should verify local requirements before taking disciplinary action.

Common mistakes employers should avoid

A common mistake is taking disciplinary action without evidence. Employers should keep records of incidents, warnings, performance discussions, investigation notes, and employee responses where relevant.

Another mistake is applying rules inconsistently. If two employees commit similar breaches but are treated very differently without a clear reason, the employer may create fairness and discrimination concerns.

Employers should also avoid jumping straight to termination for issues that could be addressed through warning, coaching, or a performance improvement process, unless the misconduct is serious enough to justify immediate action under local rules.

For companies hiring across Southeast Asia without a local HR team, Weshine’s Employer of Record service can support local employment administration, including documentation and process alignment where employee issues arise.

Disclaimer: This glossary is for general information only and should not be treated as legal, tax, payroll, or employment advice. Requirements may vary by country, role, contract type, employee classification, and current local regulations. For guidance on a specific hiring situation, seek professional advice or speak with Weshine.

Related Glossary Terms

Helpful Resources for Hiring in Southeast Asia

Need help hiring, paying, or managing talent in Southeast Asia?

Weshine helps companies hire, employ, manage payroll, and support HR compliance for remote teams across Southeast Asia, including Indonesia, the Philippines, Malaysia, Vietnam, and Thailand.