Covenant HealthCare

Policy Title:

Corrective Action

Section:

Employee Relations

Effective Date: 08/01/1999

Policy No:

502

Review Dates: 09/2009, 10/2012, 12/2014, 10/2015

Revised: 03/2003, 10/2011, 4/2013, 12/2014

Objective:

To make the employee aware of his/her actions and to correct the employee’s behavior, improve performance or identify policy infraction(s).

Scope:

This policy applies to all Covenant HealthCare employees in non-leadership roles.

Policy:

Covenant will address any violation(s) of work rules or guidelines unsatisfactory work performance or inappropriate work behavior. The purpose of corrective action is to allow an employee an opportunity to improve the policy infractions, inappropriate behavior and/or unsatisfactory work performance.

Covenant Leadership reserves the right to initiate Corrective Action at any step of the Corrective Action process or to skip steps in the procedure at its discretion based upon the nature and pattern of the infraction, behavior or performance issue. This includes the right to terminate at any stage of the procedure, including discharge for the first offense. This Corrective Action policy does not in any way alter the at-will employment relationship or create a contractual right for continued employment. 

Provisions:

The following levels of corrective action may be used at Covenant’s discretion:

STEP I COUNSELING: This is designed to alert the employee that there is an attendance, behavior, or performance issue. If the problem is not corrected, advancement to the next Corrective Action step will result. This conversation will be documented in writing, dated and signed by the manager.  A Step I Counseling is an opportunity to identify and correct situations before they progress to more serious infractions and therefore, is not subject to the Alternate Dispute Resolution process.

STEP II WRITTEN COUNSELING: This corrective step will result when inappropriate employee conduct is either a repeated offense or an offense of a more serious nature. The manager will prepare a written document referring to the policy violated and the action to be taken to improve performance. The Step II Corrective Action document will be accompanied by a written Employee Development Plan, which will be signed by both the employee and the manager.

STEP III WRITTEN COUNSELING WITH FINAL NOTICE: This Corrective Action step may result when prior Corrective Action has not been successful when there have been cumulative violations, or the circumstances warrant more severe Corrective Action. Covenant may also suspend an employee pending investigation. Consistent with the requirements of all applicable laws, suspensions may result in a loss of pay for the time period specified. The manager will prepare written documentation and hold a meeting with the employee and a Human Resources Consultant present.

          STEP IV DISCHARGE: In cases where prior Corrective Action and performance improvement plans have been unsuccessful or the circumstances warrant more severe Corrective Action. Covenant may terminate the employment relationship. The manager will prepare written documentation and hold a discharge conference with the employee and a Human Resources Consultant present.

If an employee is in Corrective Action at Step II or Step III, any progression/market salary adjustment will be reduced by 25% one time for each infraction track and 50% for one time for each infraction track received within the twelve (12) month fiscal year (July 1 through June 30). There will be no discount for Step I.

In making the decision as to the appropriate Corrective Action, managers may consider the following factors:

• The seriousness of the offense
• The employee’s disciplinary and work records
• The employee’s length of service
• Covenant’s practice in similar or related cases

• The circumstances surrounding the incident that are either mitigating (arguing for lesser penalties) or aggravating (those arguing for more serious corrective action).

All Corrective Action must be documented in writing and reviewed, signed and dated by the employee and manager. The employee will receive a copy of the document. The original document must be forwarded to the Human Resources Department for inclusion in the employee’s personnel file.

Managers may contact a Human Resources Consultant for assistance with the process.

A Human Resources Consultant must review and agree upon all Step III and Step IV Corrective Action documents before they are reviewed with the employee. The appropriate Department Director and/or executive must approve and document all Step IV Corrective Action.

The corporate compliance officer must review and agree upon all Corrective Action that is related to an employee’s violation of corporate compliance policies or code of conduct before the Corrective Action is reviewed with the employee. A copy of an employee’s Corrective Action documents will be forwarded to the Corporate Compliance office.

Formal Corrective Action documents will be considered active and may be used in making Corrective Action decisions for a period of twelve (12) months. If the Corrective Action is related to a continuing pattern of misconduct or performance, the prior Corrective Action will remain active until the misconduct or performance issues have been corrected or the employee is discharged.  All Step II and Step III Corrective Action documents will remain in the employees personnel file even once it is inactive.

In discharge situations, the employee may be given the option to voluntarily resign. This option will be determined by the manager and the Human Resources Consultant.

References or Appendices:

•Employee Separation

•Alternate Dispute Resolution