We took on a new employee 3.5 months ago, who has generally been a good worker. We like to keep a good atmosphere at work so are generally quite relaxed. After a promising start, this particular employee has started to show signs of being problematic. A week ago there was an incident of this persons making which caused £3000+ of damage to company property. She was mortified and apologised profusely but the fact remains it happened. Since then, she has been caught asleep at her desk, watches videos on her phone whilst working (despite there being a new ‘no phones’ policy), takes herself off to the shop whenever she fancies which means she’s gone for 15 minutes. Eats her dinner at her desk then takes her half hour lunch in addition. And this week she had a sleep for her entire lunch in the admin office where she doesn’t work (she had to be woken up by her line manager), then went to the shop in the afternoon citing she hadn’t had lunch because she fell asleep. I just feel like she sees that we are generally relaxed and is taking the mick. I really don’t know how to handle it. We have been waiting for a quote to repair the damage from the incident mentioned above so we are planning to give her a verbal warning and asking her to consider contributing towards that, but feel like also going to written warning regarding defying the rules and lack of respect for the management and the rest of the staff. Ultimately I can’t see the employee lasting long term but I want to do everything above board so as not to bite me in the bum. I’d really appreciate any advice.