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Handling a Problem Employee — Legally and Humanely

Managing a difficult employee can be uncomfortable, but it should be handled with both fairness and clarity. The key is to focus on behaviour and impact, not personality. A “problem employee” is usually someone whose actions repeatedly disrupt the team, ignore expectations, or undermine performance. Before acting, check your own assumptions: is the issue truly poor performance or conduct, or simply that they work differently from you?

What is the problem?

Start by identifying the exact problem and its effect on the workplace. Be specific about what is happening, how often it occurs, and why it matters. Look for possible causes such as unclear instructions, lack of training, missing resources, personal stress, or disengagement. Sometimes the issue is capability; other times it is attitude. Understanding the cause helps you respond in a way that is more likely to solve the problem.

When defining what is “wrong,” focus on actions that affect the business or other people rather than personal preferences. Clear examples and practical expectations matter. If punctuality is the issue, say they ‘must be at work, ready to start productive work at their scheduled start time’. If inappropriate comments are the problem, make it plain that respectful communication is required. Meet with the employee to discuss your concerns and confirm your expectations in writing after this discussion to create a fair framework and make it easier to address future breaches consistently.

The back-slide

It is also common to see short-term improvement followed by a return to old habits after four to six weeks. If that happens, address it promptly. Acknowledge any progress, but make it clear that standards must be maintained. If the pattern continues, a more formal process may be necessary. A performance improvement plan can provide structured support, measurable expectations, and a clear timeline. In some cases, employees improve; in others, they may decide to leave.

Improvement not maintained

If improvement does not occur, consider your options carefully. Redundancy should only ever be used for a genuine business reason, not as a shortcut for performance concerns. A negotiated exit can sometimes be the more humane and practical solution, but it must be approached carefully to avoid legal risk. Professional advice can be valuable when choosing the right path.

A Quick recap:

Define the issue, test your own assumptions, communicate expectations clearly, document them in writing, and act quickly if behaviour slips back. Throughout the process, fairness, transparency, and consistency are what protect both the business and the employment relationship.

For more practical tips on how to deal with problem employees legally and humanly click here to watch the webinar recording