EMPLOYMENT LAW: PREPARING AN EMPLOYEE HANDBOOK

(February 2007)

Companies large and small benefit from creating and implementing an employee handbook.  Here are a few considerations:

BENEFITS OF AN EMPLOYEE HANDBOOK

An employee handbook can help streamline a company’s organization.  When creating an employee handbook, management is required to address the process of how it relates to its employees.  Sometimes, this process uncovers items that management had not previously thought of or had not applied equally – which could lead to problems in the future.  Additionally, the creation process becomes an opportunity to communicate with employees and obtain their feedback.

An employee handbook helps a company manage its workers and its managers.  It can provide strict guidelines to ensure consistent treatment to employees.  This benefits not only the employee, but management and owners as well; it helps prevent misunderstandings or complaints.  If there is ever a question about a specific employer policy, it can be found in the employee handbook.

Finally, an employee handbook protects a company from lawsuits, or at least provides an additional layer of protection to prevent lawsuits.  For example, a procedure to employees as to how to complain about sexual harassment can be used in the company’s defense should an employee file a harassment lawsuit.  Additionally, stated handbook procedures may actually prevent accidents (and subsequent litigation).  An example of this would be a handbook that includes cleanup procedures in a factory.  The ideal employee handbook also contains provisions stating that the employee is terminable at will.  Terminable at will provisions - although in theory do not need to be stated in writing – reminds or puts the employee on notice of the status of their employment so there is no confusion.  In drafting the handbook, the employer must be sure to exclude any language in the remainder of the handbook that could inadvertently destroy that right to fire at will.

PROVISIONS COMMONLY FOUND IN EMPLOYEE HANDBOOKS

While there is no “standard” employee handbook, as every business is unique, there are many provisions commonly found in employee handbooks.  These include (but are by no means limited to) the following:

-         hiring procedures (what steps, if any, the employee takes before hiring)

-         firing (specific provisions that would immediately terminate employment)

-         hours (what constitutes full time versus part time, and the like)

-         vacation (how much vacation, when does it accrue, and other issues)

-         recruitment (encourage current employees to bring others into the organization).

Of course, an employee handbook can address any issues a company chooses.  For example, some companies pay for jury duty – this issue can be covered in an employee handbook.

DISTRIBUTION

The final issue is distribution of the employee handbook.  Ideally, an employer would hold a meeting to distribute the handbooks and answer any questions.  If this is not ideal (different shifts, etc.) managers can distribute to their work force.  All new employees would be distributed handbooks at the time of hire.

It is crucial that each employee – existing and new – sign an acknowledgement of receipt of the handbook.  These should all be maintained in a secure location by the employer.

UPDATING AN EMPLOYEE HANDBOOK

It is important to review your employee handbook at least once a year to determine whether any changes in the law require amending the handbook, or whether new business practices require such amendment.  Even if no changes are necessary, it may remind the owners or its managers of policies otherwise forgotten or ignored.