The Importance of Employee Handbooks

For example, most employees are “at-will” and this should be clearly stated in the handbook. This helps eliminate the employee’s argument that you breached a contract with him or her when he or she was terminated. In an at-will relationship, either party can end the employment relationship at any time, with or without cause.

It is important to understand a poorly drafted or outdated handbook can also expose an employer to risk. For instance, if the employee handbook sets forth numerous steps or procedures that must be followed before an employee can be fired and the employer fails to follow the required procedure, the employee can allege that the handbook was a binding contract that gives rise to a breach of contract claim.

When drafting an employee handbook, the handbook should clearly and conspicuously state that it is not a contract. It should be clear that the employment relationship is at-will, unless the relationship is changed by a separate written agreement signed by the employer and the employee. It is important to state that the employer has the ability to alter any policy set forth in the handbook (except the at-will provision) at any time. The handbook should also state that it replaces and nullifies any prior written or verbal handbooks and policies.

If you are interested in learning more about employee handbooks or how we can assist you with your business-related needs, contact the knowledgeable lawyers at The Swenson Law Firm to schedule an appointment.

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