Rationale For An Employee Handbook

Human resource decisions based on policies and practices that are legally correct, clearly spelled out and communicated can defuse an attorney’s pursuit of a case on behalf of an employee or former employee. A well-drafted handbook can serve as a defense to a wrongful discharge suit or a charge of violation of a state or federal employment law, thereby reducing or eliminating potential liability.

A handbook serves a variety of purposes beyond providing protection from litigation. They are very often used as an integral part of the employee orientation process and gives new employees a positive first impression of the employer. Handbooks promote fairness in employee relations by encouraging, for example, consistency in granting employee benefits, responding to employee’s requests for time off and reacting to unacceptable behavior. Another purpose of the document is to spell out all fundamental policies and procedures that employees must follow for making requests and for solving on-the-job problems.

Employers can effectively use handbooks to train and educate supervisors and administrators, as well as employees, regarding human resource issues. A well-written handbook promotes good will, prevents misunderstandings, encourages open lines of communication and clearly spells out the employer/employee relationship. The content a handbook must be adapted to the dictates of the organization.

A variety of provisions can and should be included in a handbook. Others are discretionary. Someone such as myself can help determine exactly what provisions are legally required and which ones are optional based on the employers policies, practice and benefits. Some policies to be included are industry specific. Thought must also be given to how much detail should be included in the handbooks because I don’t recommend that the handbook also serve as a “Procedure Manual.” It is imperative that every employee be given a copy of the handbook, sign a receipt indicating they have received the handbook, have knowledge of its content and intend to abide by the rules and standards of conduct.

The laws affecting the employer/employee relationship are changing constantly. It must be worded correctly to indicate that the handbook is not a “contract” or “agreement.” The importance of formulating a handbook or revising an old handbook cannot be overstated. 

For more information call Rowland Austin 313-506-0066 or at raustin@management-impact.com

I can’t tell you how many times I have had a client say to me “I am sure glad we had that provision or language in our employee handbook. It sure saved us…” which, I might add, was much more then the investment to develop or revise their handbook.  
                                                               -Rowland L. Austin