By: Nishita Patel
While there is no law requiring employers to maintain an employee handbook, a well drafted employee handbook can play an important role in reducing potential liability with respect to claims brought by current and former employees and the regulatory agencies. No employer is too small to use an employee handbook. A typical employee handbook will include policies that comply with applicable law, demonstrates an employer’s commitment to comply with the law and accurately reflect the employer’s actual practices and provides the managers a framework to consistently handle employment issues.
Reasons for having an employee handbook:
Depending on the size and the location of employer’s business and its employees, different employment laws (federal, state and local laws) may apply and govern aspects of the employer-employee relationship. For the employers with strong, centralized legal and human resources functions, it is recommended to have an employee handbook that is compliant with federal law and addendum for each state where the employer has employees. This allows an employer to keep uniformity in basic policies. Many employers maintain their employee handbook on its intranet, to achieve administrative ease and uniformity in managing their workforce.
A poorly drafted or outdated employee handbook may create liability for the employer. As such it is advisable that the employee handbook use flexible language and proper disclaimers. Also, in view of the changes in circumstances and laws, the employee handbook should be regularly reviewed and updated for better protection of your company.
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