Employee Handbooks

Don't Skimp Here!

Does your organization need an Employee Handbook?

In a word, yes.

Some organizations are under the false impression that their organization is too small to require an employee handbook. This is a dangerous assumption to hold.

Some businesses are reluctant to establish and distribute an employee handbook outlining the organization's rules and policies because they believe it will lessen their managerial flexibility. Companies should realize, however, that when they operate without documented policies, the organization's practices become the company's policies. Organizations place themselves at risk when they operate without written guidelines, that when administered consistently are less subject to challenge based on discrimination or wrongful termination.

The purpose of an Employee Handbook

The purpose of an employee handbook is to clearly define the organization's policies and its expectations of employees, and, in turn, what employees can expect from the company. A well drafted handbook educates employees, sets organizational tone and outlines employment related rules and practices. Handbooks provide information on a broad range of topics including equal employment opportunity, sexual harassment, employment benefits, work rules, paid and unpaid time off, safety discipline and termination.

How an Employee Handbook Can Protect Your Organization

Organizations should be aware that an employee may file an employment related charge or suit for many reasons. An employee handbook cannot prevent this action, but can help in the defense of employment related litigation if the organization has followed its own rules. For example, some plaintiffs have argued that the absence of a written policy on sexual harassment indicated that the organization condones such practice. A documented policy on sexual harassment will help avoid such assumptions.

Companies should also be aware that an employee handbook should not be confused with, or combined with, a management procedural manual or a summary plan description of benefits. Furthermore, in Illinois, an employee handbook has been considered a contract unless there is a disclaimer that states it is not a contract.

If your organization does not have an employee handbook consider the failure of this tool for consistency and compliance with regulations. At a minimum, an Employee Handbook should include the following.