An employee
handbook is not just a nice benefit to offer employees
— it is a necessity in today’s workplace.
A good employee policy guide can:
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1. Eliminate unnecessary
disputes or misunderstandings
2. Permit resolution of many disputes in the workplace
3. Establish a coherent, unified approach to many employment
situations that arise in the workplace
4. Convey information to all employees in an organized,
consistent and coherent manner
5. Establish the parameters of the employment relationship
6. Limit a company’s liability
7. Promote morale and efficiency by letting employees
know what to expect and what is expected of them.
8. Convey to employees the company culture and history
that has been so carefully crafted by company founders
and current management.
9. Answer many employee questions about company policy
and obligations, employee rights and obligations, benefits,
discipline, and termination of employment.
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| An employer’s
workforce represents one of its most significant assets. As
a result, each employer has an obvious interest in maximizing
productivity and promoting positive employee relations. Many
employers wisely establish programs and policies to enhance
employee morale and facilitate performance. Employee discontent
can lead to union organizing efforts, diminished productivity,
lawsuits, and more. |
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The Employee
Handbook Tool
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A well-drafted employee handbook
is among the most important and effective tools available to
an employer to promote good employee relations and prevent
and defend lawsuits.
A handbook does this while providing the flexibility needed to
respond to different situations. For example, an employer facing
a layoff without a written layoff policy will often be met with
a hostile workforce claiming unfairness. Employees will react
strongly to any layoff selection criteria used (i.e., seniority,
merit, job transfers, bumping, etc.) This situation is one of
the most common triggers of union organizing drives, and one
that is easily avoided by adopting a layoff policy before any
layoffs are needed.
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Most employers strive to maintain
the “at-will” status of their work force, which requires
very specific language throughout their handbook. Although
this approach is under constant attack by plaintiffs’ lawyers,
it is still generally considered the best approach by most
employers’ counsel, allowing the employer greater flexibility.
Extremely careful drafting of this type of handbook is essential.
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New Laws
and Court Rulings
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There are many new state and
federal laws that virtually require a company to have policies
on various subjects. New court rulings on sexual harassment
and family leave are only two examples of this. Other things
may be required for particular industries; for example, transportation
and government contractors are required to have substance abuse
programs. Changes in harassment laws, the ADA, new protected
classes such as sexual preference and HIV status, Family Care
Leave, and other recent legal developments make frequent handbook
updates a necessity.
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In addition to required policies,
employers should have additional written policies to protect
them; failing to address issues such as layoffs, vacation,
grievance procedures, disciplinary actions, and benefits may
yield unintended results. In many cases, an out-of-date or
poorly-drafted handbook may be worse than none at all.
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| In short, employee handbooks
can be a valuable tool in managing a company’s most significant
resource — its employees. However, unless your handbook
has been revised within the last six months, chances are that
your policies are out-of-date. Employers who do not have a
handbook should consider developing one; employers who do have
one should review it now, rather than wait for a plaintiff’s
lawyer or government official to point out any problems. |
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