Legal Advise
In the event that you need to discipline, or even dismiss, an employee from your employment, you need to seek legal advice to ensure that you are following all the correct procedures (in line with their contract of employment, but usually a verbal warning, followed by two written warnings before finally dismissal, unless your employee has committed an act of gross misconduct).
BEFORE TAKING ANY DISCIPLINARY ACTION - PLEASE CALL YOUR LEGAL ADVICE LINE. OTHERWISE YOU MAY FIND YOU HAVE TO MEET THE COSTS OF SUCH ACTION AND COURT AWARDS YOURSELF - the average industrial tribunal legal costs, i.e. excluding any award, of the defending employer were over £2,500 in 2005/6 (source: BERR report - employment relations research series no: 83)
If you haven't followed these procedures your former employee can try to take you to court for unfair dismissal. You may not be insured against this legal battle unless you can show that you have followed the dismissal procedure fully.