SOME DO'S AND DON'TS ABOUT
EMPLOYEE HANDBOOKS
For our clients who have employees, we recommend that there be an employee handbook in
place setting forth every major aspect of employment with the company. When developing
their handbooks, many of our clients have asked us for assistance in determining what
should or should not be included in the handbook. Whether you are developing your own
employee handbook or simply reviewing your current handbook to make sure it
adequately meets your needs, we recommend the following "do's and don'ts":
DO'S
- Do address every major aspect of employment such as:
- Organization, management and administration;
- Policies regarding overtime, time reports, lunch and break periods, and
personal use of company equipment and supplies; and
- Employee benefits and how they apply.
- Do reserve the right to modify the handbook at your discretion.
- Do review your handbook yearly and make modifications based on
changes in the company or its policies and changes in employment law.
- Do have your employees sign a handbook receipt form and have them
sign new receipt forms whenever there are handbook changes.
DON'TS
- Don't create a contract. Your employee handbook is designed to
communicate the company's rules, policies, procedures and benefits. In
a prominent place, specify that the handbook does not create a
contractual relationship.
- Don't include the term "cause" when describing termination or
disciplinary matters. The use of "good cause" or "just cause" imply
greater job protection than the concept of an "at-will" employment
relationship.
- Don't refer to a probationary, orientation or training period in the
handbook. Such a reference suggests that after this period passes, the
employee has some degree of job protection beyond "at-will."
- Don't "guaranty" benefits. Give yourself room to modify benefit
structures, as needed. State that the handbook refers to benefits existing
at that particular time, and are subject to modification.
A quality handbook will help you in efficiently and effectively communicating your
company's policies. It helps to insure that your company's procedures comply with
employment laws, such as the Family and Medical Leave Act of 1993; the Americans with
Disabilities Act; diversity issues; sexual harassment laws; and employee health concerns
such as AIDS/HIV, repetitive stress injuries and second-hand smoke. Finally, your quality
employee handbook will help ease the administrative burden on supervisory personnel.
Of course, this is only a brief overview of some of the "do's and don'ts" when drafting your
employee handbook, and should not be used for specific legal advice. Please contact us if
you would like additional information or would like assistance in reviewing or drafting
your handbook.
NOTICE
This web page and the information contained herein may constitute advertising material under
the Illinois Rules of Professional Conduct.
The firm brochures provided by Smith, Landmeier & Elders, P.C. are intended to provide
general information on various areas of the law. They are not to be relied upon for specific legal
advice. Transmission or receipt of this information is not intended to create an attorney-client
relationship. Any specific legal questions or issues should be handled by a competent attorney.
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Last Updated Jan
5, 2005