Owners of small to mid-sized businesses often ask whether they should have an employee handbook. The benefits of a well-written handbook are many.
While there is no law that says you have to have one, failure to have a handbook leaves an employer open to potential disagreements over what the employer’s policies, procedures and work rules are. Absence of a handbook also takes away an opportunity for the employer to go “on record” with a written statement prohibiting discrimination and harassment.
A well-written handbook should contain at least the following:
- A clear statement of the employer’s general rules, policies and practices;
- An affirmative statement that all employees are employed at-will;
- A disclaimer that the handbook is not a contract;
- A statement that the employer has the right to change or discontinue its plans, policies, benefits and procedures at its sole discretion, without notice to employees;
- A statement that assurances of employment conditions are not binding, unless they are in writing, directed to the affected employee, and signed by an authorized officer of the company;
- An equal employment opportunity statement;
- A statement prohibiting sexual harassment; and
- A written receipt to be signed and returned by the employee, acknowledging receipt of the handbook.
Employee handbooks can create difficulties for employers if they fail to incorporate the above safeguards. In addition, employee handbooks should avoid creating detailed and cumbersome procedures for discipline and for termination of the employment relationship.
In summary, a well-written handbook provides a useful set of guidelines for structuring the employment relationship without creating overly burdensome contractual obligations for the employer.
– Cynthia Dixon