How do you fire an employee that does good work, but has integrity issues?
How do you best fire someone that does good work, but lies non-stop, manipulates, comes to work late, and misses days of work with fake illnesses? What about legal issues?
Usually, a company will have ethics guidelines (if not, they should!). If the employee has violated your code of ethics or code of conduct (they're probably two separate documents), go through the progressive discipline process and address the issues. Managers need to decide whether good performance balances bad integrity. My vote is no on that, by the way.
I would think you need to "build a jacket" on the person. Document everything. You can document tardiness, but it might be your word against his as to whether he/she stays home to do fake illnesses.
I would consult your firms HR people or an attorney to be safe. These days you can't be too careful.
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