Before I was an independent, I was an office manager.  Our human resource handbook required us to write up an employee each time they did something as severe as missing a mortgage or judgment.  After the fourth time that these errors were made, they were automatically dismissed.  Each employee knew this beforehand, as they were issued a handbook with all the rules and regs at the time of employment.  This four write-up rule covered the complete time they were employed.  It made for some very thorough abstractors, the ones that decided to stay.