When drafted properly and regularly re-emphasized, the employee handbook is a powerful tool for employers to communicate important information about their values, policies, procedures and benefits.
What follows are simple steps employers should consider when drafting an employee handbook.
n The drafting process begins by tracking down the most current versions of applicable employment policies and procedures, as these documents will form the content of the handbook. If they have not been updated within the past year, they should be reviewed and updated by legal counsel.
n Once policies and procedures are up to date, develop an outline of major topics to include in the handbook. Many employers begin by including a brief statement of mission. This not only communicates important information to new employees about the organization, but also reminds current employees of their important role as resources for institutional knowledge and culture. While the length and content of the employee handbook will necessarily vary, there are a few essential provisions to include, specifically:
n The handbook is not an employment contract and does not create any contractual rights in the employee;
n The employment relationship between the parties is at-will (i.e. is terminable by either party at any time and for any non-discriminatory reason).
n The organization is committed to equal employment opportunity for all.
n Include references to the specific local, state and federal laws that govern the relationship with the organization’s employees.
n Next, summarize the organization’s employment policies and procedures from the up-to-date materials. Use clear, concise and comprehensible language. Keep in mind the handbook must serve as a resource to employees at all levels of the organization. Legalese and industry jargon should be avoided whenever possible.
n Once the draft handbook has been prepared, it should be reviewed by counsel before it is finalized and disseminated to employees. This will ensure that essential legal provisions have not been mischaracterized or misstated. For example, such feedback may avoid running afoul of the National Labor Relations Board, which recently has taken an aggressive stance against overly broad employee-handbook provisions that may impinge on the collective-bargaining activity of employees.
n Determine how the handbook will be distributed. Many employers provide new employees with a physical copy of the handbook at the beginning of the employer-employee relationship. However, this should not be the one and only time an employer engages with its employees regarding the handbook and its contents. Email should be used as a tool for communicating updates to the handbook to reflect current legal developments, even if the physical handbook is reprinted only periodically. Training on specific handbook provisions is also recommended to create and maintain a compliance culture within the organization.
n Finally, the employee handbook should be reviewed and updated at least annually. Employment laws change rapidly and new obligations are constantly being imposed. Failure to heed these new obligations could have a devastating effect on one’s business and the bottom line.
Drafting and updating an employee handbook does not have to be a chore. Rather, it should be viewed as a valuable opportunity to ensure consistency across an organization and to provide employees with a valuable resource. The energy spent each year updating the handbook could result in valuable savings of time and expense in the future. •
James A. Ruggieri is a partner with the Providence law firm of Higgins, Cavanagh & Cooney LLP. Gregory M. Tumolo is an attorney with the firm.
