When an employee or a student breaks SCHOOL POLICY
First, the school must have a written policy that has provisions that deal with what to do with someone who breaks the policy. Unwritten school policy is practically useless in civil or criminal courts.
It is relatively easy to handle student misbehavior. When the student’s contact expires, you simply refuse to renew it. To terminate a student before the end of the contract, refer to the contact terms to see what options you have (ensure your contract cover this contingency). For month-to-month students, you just ban the student from the school at the end of the month. For a serious offense, you may even refund the tuition and ban the student immediately. The length and severity of the ban depends upon the offense. It may be that the student is allowed to come to class but sit on the sidelines and not participate for a period of time.
For an employee who breaks the schools written policy, the employee may receive a verbal and documented warning, may have pay withheld, may be placed on leave with or without pay, or may be terminated. Be sure you get legal advice before acting because every city and state has different laws.