News & Insights

As school bus operators know, managing employees is no easy task. When employee disciplinary issues arise, many school bus operators get stumped on what type of discipline is appropriate. In response to more frequent or severe performance issues or misconduct, school bus operators may feel they have no choice but to terminate the employee; however, some employers may recognize that termination is not always risk-free. In these circumstances, a last chance agreement can be used as an alternative to termination.

What is a last chance agreement? Simply put, it is an agreement between the employer and the employee who is being disciplined, allowing the employee one final chance to correct their behavior and keep their job. Last chance agreements will typically outline the employee’s performance issues or misconduct and make clear that the employer will continue to employ the employee at-will provided that the employee takes action to correct the problem and remain in compliance with company policy moving forward. Employees will acknowledge the issue, and affirm their understanding of employee policies and the fact that further performance issues or misconduct will result in termination.  

Last chance agreements are a solid alternative to termination, especially in cases where the employer has concerns about potential discrimination or retaliation claims. By providing employees with one final chance to correct any performance issues or misconduct, this can help support the fact that any future adverse action is based on legitimate performance and/or conduct issues, and not discriminatory or other unlawful motives. Another benefit of last chance agreements is that they remove uncertainty about future discipline for both the employee and the employer by setting expectations and a clear path forward for both parties. Last chance agreements are also good for employers from an employee retention standpoint, as they allow employers to retain trained and experienced employees and avoid the time and cost that will be spent in recruiting and training new candidates.

School bus operators should consider last chance agreements as an additional disciplinary tool. School bus operators that choose to use last chance agreements should ensure that they are drafted unambiguously, and not in a way that would violate employment laws, such as the Americans with Disabilities Act. If you are considering adopting last chance agreements, or have any questions regarding above, please contact help@rckelly.com or call us at 215-896-3846.