Can I reverse the decision to extend a contract?

[mincepiemadness]

I very recently verbally agreed to extend a staff member's contract by a reasonable chunk to enable her to qualify for full maternity rights. She has a poor track record which none of her previous managers have been able to properly address for various reasons, so I took this decision purely out of kindness, really. I am now regretting this as she has since been constantly late, off sick, her work is badly organised, etc. Only the other day she told me she couldn't wait to leave .

Am I within rights to just cancel the extension of her contract (bearing in mind we are not yet in the extension, no paperwork has gone in, nothing has been signed, etc)? Or would I need to go down the drawn-out performance management / disciplinary route? Or just put up with the stupid decision I took?

[LadyMuck]

Contracts can be verbal or written, so the fact that nothing is written down doesn't help you. How long has she worked for you for?

Personally I would always use the disciplinary/dismissal route as an employer, as it helps reduce the chances of a successful discrimination claim.

How long has she worked there (if you had to extend to give maternity rights?)