Drafting an Effective Employee Handbook
While the law does not require employers to have an employee handbook, laws at both the state and federal level do require that employers have written employment policies. Handbooks are the most efficient way to inform employees of the organization’s expectations and achieve legal compliance. Most handbooks, at a minimum, include an employer’s human resource policies, information on compensation and benefits, conduct expectations, and disciplinary procedures. While using a template may provide a good starting point, additional effort should be exerted so that the handbook reflects the organization’s culture and philosophies. Simple, easily understood language is crucial, as are translated editions where you have significant numbers of non-English speakers.
The first page of the handbook should contain clear and conspicuous disclaimer language, including an “at-will” provision. This language should be bolded and written in larger font than the rest of the text. Expressly stating the handbook does not create a contract of employment and that employees may be terminated at any time, with or without cause, normally provides a strong defense to breach of contract claims. A statement that management reserves the right to change any aspect of the handbook at any time should also be included.
The policy section should include an organization’s EEO policy, sexual harassment policy, and methods to request reasonable accommodation under the ADA. A clear complaint procedure should be included so that employees who feel they have been discriminated against know exactly where to report their concerns. The policy section should also include any confidentiality, non-disclosure, and intellectual property protection requirements.
Compensation and benefit information on insurance, retirement, paid time off, tuition reimbursement, and leaves of absence should be provided. Any employee contributions for benefit participation should be clearly spelled out. Also, how accrued vacation will be paid upon termination must also be articulated as such payments are governed by policy, not law. In addition, a statement must be included that where another document, such as a Plan Document, contains more specific information, the more specific document governs in the event of any language conflict.
A rules section should be included in the handbook. Examples of improper conduct such as violence, theft, harassment, and possession or use of drugs or alcohol should be outlined. Any attendance, grooming and personal appearance expectations should also be described. In addition, a statement that such rules are not exhaustive, and that management reserves the right to take appropriate action for any conduct it deems inappropriate should be included.
To avoid legal liability that may come from termination or disciplinary actions, it is advisable to include a specific policy regarding discipline. The policy should lay out a progressive disciplinary process, but make clear the employer will decide the level of discipline, up to and including immediate termination, for any offense.
All employees should be given a copy of the handbook and asked to sign a form acknowledging they have read it and agree to abide by its terms. Whenever changes are made to the handbook, employees should be asked to sign a new acknowledgment.
Employers should review their handbooks annually to ensure they comply with any changes in the law or their own practices. For instance, growth in employment can cause an employer to become subject to laws they were formally exempt from.
