What Info Ought to A Firm Embody In Its Employee Handbook? – Employment and HR

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What information should a company include in its employee handbook?

August 05, 2021

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Employee handbooks serve a variety of purposes. While manuals are used to establish expectations of employers and employees, they can also serve as a means of defense in labor disputes – if properly written and used. If, on the other hand, a company lacks an employee handbook, if this is insufficient or if a company does not apply its handbook consistently and enforce it consistently, it can be exposed to liability risks that could – and should be avoided.

Why adopt an employee handbook?

An effective employee handbook will cover a wide range of topics, including topics related to the company’s professional and altruistic goals, equal employment, the nature of the employment contract (if any), and the general purpose of the handbook itself. With that in mind, some of the top reasons organizations of all sizes should use employee handbooks are:

• Providing guidance to supervisory and management personnel regarding the implementation of company policies and procedures in the workplace;
• Setting expectations for all company employees regarding matters such as compensation, paid vacation, promotion, discipline, and termination;
• Documenting the company’s commitment to preventing harassment and discrimination in the workplace and establishing clear procedures for employees to submit complaints;
• Demonstrate the company’s compliance efforts with respect to its obligations under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), and other relevant state and federal laws; and,
• Creation of a roadmap for the company to reduce the risk of liability in labor litigation.

What should an employee handbook contain?

There are several aspects to consider when creating an employee handbook. It is critical that organizations address these issues with their respective employees, priorities, and legal obligations in mind. A fancy employee manual will not be effective, and in many cases adopting a “form” manual can actually be counterproductive to achieving a company’s goals and reducing the risk of labor liability.

So what should an employee handbook contain? Here are some examples of key issues that most businesses need to address:

Free employment

For employers with offices in states of voluntary employment such as Pennsylvania, clear demarcation of the terms and conditions of employment of their freely chosen employees is essential. Many volunteers mistakenly believe that they can only be terminated for good cause. By eliminating myths like these in their employee handbooks, organizations can set reasonable expectations and reduce the likelihood of unjustified, yet costly, wrongful termination allegations.

ADA accommodations

The ADA requires employers to provide reasonable accommodation to qualified workers with disabilities. Because employers have to process requests for ADA accommodation on a case-by-case basis, manuals should not address specific types of accommodation, but instead describe the steps employees can take to submit a valid application.

Religious accommodation under Title VII

Under Title VII, employers must also make reasonable accommodations to workers whose sincere religious beliefs prevent the regular performance of their professional duties. Here, too, the focus should be on employee handbooks, outlining the application process and developing suitable accommodation together with the employer.

Performance reviews

A company’s employee handbook should clearly define its performance appraisal standards. While specific expectations may vary between departments and positions, a company’s manual should make it clear that all reviews assess pre-defined criteria related to employee performance and attitudes – and not discriminatory or other outrageous factors.

Violations and Discipline

A company’s employee handbook should also clearly define what constitutes a violation that may compel an employee to be disciplined. Common examples of violations are:

• lateness
• Disobedience
• Poor performance
• Theft
• Use of drugs or alcohol
• Possession of firearms
• Don’t call or show up for work
• harassment

An employee handbook should also establish disciplinary standards and procedures and make it clear that supervisors and managers are expected to apply discipline in a consistent and non-discriminatory manner.

redundancies

Although employers are free to terminate workers for any non-discriminatory reason or without giving a reason, it is generally still good practice to document the reasons for individual terminations and cuts by workers. A company’s employee handbook should outline objective criteria (e.g., poor performance reviews and seasonal layoffs) and avoid criteria that appear objective but still pose a risk to disparate outcomes (e.g., salary or seniority).

The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.

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