As an HR person, but not their HR person and not a lawyer, my impression is that documenting what has taken place so far would be sufficient to terminate this person with minimal legal risk. I recommend consulting an attorney with employment law experience on a one-time basis to confirm this, then most likely going ahead with the termination. You don’t need to give a reason to term someone. He may file for unemployment and they will have to decide whether or not to contest it. Compiling more documentation, doing a performance plan, etc. would help contest unemployment, but is it really worth it with this guy in the finances??? Also, failure to term someone for this type of behavior sets a precedent next time an employee does something similar, who may be of a different race, sex, age or religion. The failure to term him ASAP after the open bottle incident has already created this risk to some extent.
The employee handbook is a good idea, too. There are HR consultants who will do this, the employment law attorney could probably do one, and there is software to buy that gives basic templates.
Note: upthread someone mentioned “probationary period.” This carries no legal weight. It may influence internal company practices, but doesn’t change what employment laws apply, except perhaps if it is formalized in a union contract.
All the HR needs of a small business. Great resource we used them to get a new employee handbook, and to help us with HR problems. Everything the little company will need.
Generally speaking I think the safe thing to do is to keep a log of his days for a couple of weeks. That documents his long lunch hours, late arriving Mondays, leaving early Fridays, etc. In addition when he closes his office door after a long lunch hour, wait a while and then knock on his door and drop in to see him.
After the log is compiled, have the boss call him in and confront him with it. Ask if he is having some sort of personal problem, home problem, and if there is anything that the company can do to help.
Then plainly tell him that his work habits and work have to improve and in what areas improvement is needed and what he must do to meet standards. If he improves you win, if he doesn’t you have a documented record and have given him a warning and an opportunity to straighten out.
If someone had done that for me I wouldn’t have acted in a similar fashion for too many years.