To avoid this result, state in your employee handbook that your company reserves the right to terminate employees for reasons not stated in the handbook or for no reason at all. Even though you may never have to rely on this language, at least your employees will know where they stand.

Rigid progressive discipline policies. Most employers follow some form of progressive discipline for performance problems or misconduct (attendance problems, difficulties getting along with coworkers, or missing deadlines, for example). You may choose to start with a verbal warning, followed by a written warning for a second offense, followed by a probationary period or suspension, then termination for subsequent problems. Whatever system you implement, make sure to keep your options open.

Don't obligate yourself to follow a particular disciplinary pattern for every employee in every circumstance; otherwise, you may find it difficult to fire an employee for truly egregious behavior.