Business today is more complex than ever. Confusing laws, new rights for employees and today’s fast pace make it hard to keep up. These conditions can increase tension among managers and coworkers, as evidenced by the rising number of employee claims.
There is one step almost every business can take to improve communication with employees, reduce employee claims and improve the chances of winning in the event a claim is made. Just about every company should have an employee handbook.
An employee handbook is a booklet stating key information for company personnel. No specific format or contents are required so each company can have a handbook tailored to its own needs.
There are many good reasons to have an employee handbook. Good employee handbooks:
• help managers and supervisors apply company policies consistently by making sure everyone has the same uniform statement of important policies;
• provide a single reference location making important company policies easier to find when there’s a question;
• help the company enforce policies by eliminating excuses that the employee never received the policies;
• improve employee morale by providing all employees with a common understanding of expectations and company policies and benefits; and
• can satisfy a company’s legal duties to provide certain information to employees, and give proof the information was provided.
Employee handbooks can cover a wide range of topics. A typical employee handbook covers at least these subjects:
A Disclaimer
The manual should have a prominently placed disclaimer that includes several key points that can help employers avoid legal claims by employees and help them if a claim is made, including:
• a notice that the handbook itself is a statement of policies but not a contract;
• that the company has the right to revise the contents and change any policy at any time; and
• that the handbook does not imply any change to the at-will employment policy.
Company history and values
The manual can state the company’s history and organizational structure. It can also explain the company's philosophy, ethics and goals. This can help give employees a greater sense of purpose and a better understanding of their role in the business.
At-will employee policy
From a legal standpoint, including an "at-will" provision in an employee handbook is one of the most important reasons to have a manual. An "at-will" provision reminds and confirms that employees work for the company at-will, which means that either the company or employee can end the employment relationship at any time. "At-will" provisions in employee manuals have helped many businesses in wrongful termination claims. They have relieved employers of liability when an employee who leaves the company because of a firing or other reason sued, claiming he or she was promised continued employment.
Laws the company is required to inform employees about
In some states and industries a company must tell employees about specific laws or regulations. The employee handbook is one good place for this.
The company’s important rules and policies
Some typical subjects are arriving to work on time, breaks, absences and illness, safety, criteria for awarding raises, and protecting confidential information. Also included should be an equal opportunity statement indicating that a person's age, sex, race, religion, disability or national origin will have no affect on any aspect of the job, including hiring, firing, salary, promotions or raises.
Information on personnel policies
The handbook is a good place to provide information on such issues as work hours, pay periods, holidays, pay reduction for lateness and vacation policies.
A key provision to include in an employee handbook is the company's policy expressly prohibiting sexual harassment. There should also be a complaint procedure for employees who believe they have been sexually harassed. Having an effective written policy against sexual harassment can help reduce these types of employee claims and protect an employer in the event such a claim is made.
Information about employee benefits
The employee manual is a good place to inform employees about insurance and other benefits the company provides, including how much of the insurance premium the company pays, who is eligible for coverage and how long new employees must wait for coverage.
These are some of the main items to include in an employee handbook. Your company's manual can include various other information about your company and its policies, such as dress codes, use of company vehicles, restrictions on personal phone and internet use, hours of operation, phone lists, jury duty, funeral leave and anything else relevant to your particular company. Most employee handbooks also come with a form of receipt for the employee to acknowledge that he or she has received and read the manual.
Keep your handbook up-to-date
You should regularly review your company's employee manual to make sure it is up-to-date. Laws and company policies change over time, and what was in effect when the manual was first written may no longer be accurate. It's wise to review the manual at least every year and revise it if necessary.
Employee handbooks have proven their worth for many employers in wrongful termination lawsuits. In today’s complicated workplace, almost every company can benefit from having an employee handbook. Since the handbook can create a legal obligation, legal assistance should be obtained in preparing it.
Contact an attorney at DeMarco & Triscaro today. Please call us for all your legal needs. We offer a full range of legal services to individuals, families and businesses, including personal injury, estate planning, real estate, family law and business matters. We are dedicated to providing the highest quality legal services at a reasonable cost. |
