Is It Time to Update Your Employment Handbook?

The answer to the above question is that it depends on when your employee handbook was last reviewed. Generally, we recommend that a company review, or have legal counsel review, its employee handbook, at a minimum, on an annual basis. This is necessary in order to ensure that any changes in the Company's policies and organizational structure are reflected in the handbook. Further, as employment law changes, so too should a company's handbook.

An employee handbook defines a company's rules and policies for new and existing employees, provides a ready reference for experienced employees, and ensures that all employees receive essential information in a complete, accurate and standardized form. A properly written handbook can help protect an employer from lawsuits, employee grievances and other on-the-job disputes.

Employee handbooks should discuss standards for on-the-job conduct and safety, provide an explanation of disciplinary and termination procedures, and discuss other general employment practices. Typical policies may include a probationary period, hours of work, wage and performance reviews, family and medical leave, leave of absences, reporting leaves, the use of company property, and personnel records.

Employee handbooks should also address equal opportunity policies, anti-discrimination and harassment policies, internet use and email policies.

While a progressive disciplinary and termination provision should be included, the employee handbook should also reiterate that employment is "at will" and may be terminated with or without cause. Clear, unambiguous and conspicuously located disclaimers should be included in all employee handbooks to ensure that the company retains appropriate management rights and that the employee handbook does not become an implied in fact contract.

Finally, the employee handbook must be properly distributed to and acknowledged by the company's employees.

Should you have any questions regarding employee handbooks or other employment law issues, please contact David M. Cuppage or Scott D. Simpkins at (216) 621-8484.