Employee Handbooks: Three Key Objectives fo By Michael A. Shadiack, Esq.
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he importance of an employee handbook cannot be over-stated. It is the most important employment-related document that an employer will possess. It provides the employer an opportunity to formally welcome new employees, explain its work rules and procedures, set forth its expectations of the workforce, and discuss the benefits offered. There is no one-size-fits-all employee handbook. The handbook must be tailored to the employer’s business practices, industry, and the size and location of its workforce. In order to maximise the benefits of the handbook, it should be drafted to accomplish three key objectives: (1) clear communications with employees; (2) administrative efficiency; and (3) prevention of litigation.
The employee handbook should contain a policy that invites input from employees on potential or actual workplace issues by establishing a structure for suggestions or complaints. For example, the handbook may contain an “Open Door” policy, pursuant to which an employee can raise a concern or a suggestion without the fear of reprisal. The handbook should also contain a complaint procedure, pursuant to which an employee can assert a complaint of harassment, discrimination, and/or retaliation. The complaint procedure would set forth a protocol for management to investigate that complaint while maintaining the confidentiality of same, and then to take prompt and effective remedial action if the complaint is found to have merit. It is a good idea to prepare a formal “Complaint Form,” which would dove-tail with the complaint procedure.
1. Clear Communication with Employees The handbook provides a uniform set of rules, rights, and procedures, which must be consistently applied to all employees. It supersedes any inconsistent information provided by a supervisor, and may be cited to rebut any inference that the company endorses a contradictory practice. Moreover, the policies should include enough information to assist the employees in understanding the reason and logic for each policy. This will make it easier for employees and supervisors to adhere to the policies, and to avoid dissention and frustration. Employees frequently cite a vague policy or the absence of a policy as a defense to an adverse employment action. A poorly drafted employee handbook that blindly borrows policies from another company’s handbook (which may differ from the employer’s practices), or is a boilerplate handbook purchased off of the Internet, contains lawsuit-provoking buzzwords, contradictory language or unnecessary verbiage, limits the employer’s flexibility in addressing personnel issues, and may leave the employer vulnerable to litigation. 18 - Expert Guide : Labour & Employment Law 2013
The employee handbook should also provide full information about leave of absence statutes/programs, and set forth in detail the actions that an employee must take to avail themselves of those leave statutes/programs. Finally, the handbook should make clear that the information provided regarding fringe benefits (e.g., medical, dental, life, disability insurance) is merely a summary and the employee should consult the Summary Plan Description or plan documents for specific details and/or contact the human resources department to discuss specific questions.