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THE EMPLOYEE HANDBOOK: TIME TO WRITE OR REVISE YOURS?
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BETHESDA - CHEVY CHASE CHAMBER OF COMMERCE PROGRAM OCTOBER 13, 2000
Regardless of the size of your business, having an employee handbook that addresses the company's policies and procedures can be one of the most
valuable business documents you will create and use. That being said, an employee handbook is not a ìone-size-fits-allî item. It is crucial to
consider and address a number of specific issues when drafting the handbook ñ such as the companyís size, its locations, the nature of its business,
the composition of its workforce, whether its employees are unionized, applicable employment laws, workplace problems that it routinely faces, and
the overall corporate culture.
Our goals in this Seminar are to understand:
- how policies in the handbook can guide and improve employee performance and employee relations
- how the handbook can help protect the company from legal liability for discrimination, harassment and retaliation
- sample policies to include in the handbook
- matters not to address in the handbook
- language that should NEVER appear in the handbook
- how to draft an effective disclaimer
- how to guard against inadvertently creating contractual obligations
- how to handle distribution of the handbook and receipt of signed acknowledgement forms
- the importance of consistency in applying the handbook's policies
I. Why Should You Have a Handbook?
- Provides clear guidance on expectations, rules, and procedures
- Sets the tone for the company
- Minimizes requests for clarification and possibility of inconsistent responses from management
- Demonstrates the companyís commitment to adhering to EEO laws
- Good for morale to have one-stop reference manual
- Benefits employees to have written educational/informational training materials
- Better ensures consistency of treatment of employees
- Can be used to show employees were aware of policies
- Increases employee accountability
II. What Should Be In the Handbook?
Ask yourself: What Issues Keep Coming Up?
- Disclaimer
- Employment at will statement
- EEO policy: Discrimination, Harassment, and Retaliation
-Specific policies defining discrimination, harassment, and retaliation in detail, including examples
-Zero tolerance commitment
-Complaint procedures
-Investigation procedures
-Confidentiality issues
-Corrective action
-Prohibition against retaliation
- EEO policy: Family and Medical Leave Act
- EEO policy: Reasonable Accommodation
- Confidential and Proprietary Information of the Company
- Employee privacy: E-mail/internet/computer files/phone calls -- usage and monitoring
- Performance Evaluations
- Open Door Policy
- Personnel Files
- References
- Safety Rules
- Code of Conduct
- Exempt vs. Non-Exempt Employees
- Your Salary and How It Is Paid
- Timesheets and Time Reporting
- Salary Adjustments
- Use of Best Efforts/ Avoiding Conflicts of Interest
- Hours of Operation
- Leave Accrual and Holiday List
- Scheduling Leave Time
- Conversion of Accrued Leave to Cash at Separation
- Authorization for Overtime
- Closings for Inclement Weather
- Performance Reviews
- Absences and Tardiness
- Drug and Alcohol Free Policy
- General Work Rules
- Lunch Breaks
- Personal Calls
- Acknowledgement of Receipt for Employee to Sign
III. What to Leave Out
- Promises of long term employment
- Reference to probationary periods at beginning of employment relationship
- Guarantees of, and details regarding, health insurance and other employee benefits
- Promises of progressive discipline
- Termination based on just cause or good cause
- Promises of severance pay
IV. The Disclaimer
Under Castiglione v. Johns Hopkins Hospital, 69 Md.App. 325, 517 A.2d 786 (1986), the language must effectively disclaim any intent
to create a contract.
SAMPLE: The provisions of any employee handbooks, manuals and any and all other written statements of or regarding personnel policies, practices or
procedures that are or may be issued by the Company do not, and shall not, constitute an express or implied contract of employment, and they create
no vested rights. Any such provisions may be changed, revised, modified, suspended, canceled, or rescinded by the Company at any time without notice;
they constitute guidelines only and may be modified in the sole and absolute discretion of Company.
V. Distribution and Receipt of Signed Acknowledgement Form
SAMPLE: See Exhibit A
VI. The Importance of Consistency in Applying the Policies
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EMPLOYEE ACKNOWLEDGEMENT FORM
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Exhibit A:
I HEREBY ACKNOWLEDGE receipt of a copy of the Company's Employee Manual, Number _____, and state that I have had an opportunity to read the Manual
and ask any questions that I might have concerning it.
I FURTHER ACKNOWLEDGE AND UNDERSTAND that my employment with the Company is not guaranteed; that this Manual does not constitute a contract, either
express or implied, between the Company and me; that my employment and compensation can be terminated, with or without notice and with or without
cause, at any time, by either me or the Company; and that the policies and benefits set forth in this Manual can be changed and/or eliminated at
any time at the sole discretion of the Company.
I FURTHER ACKNOWLEDGE AND UNDERSTAND that my telephone conversations, voice mail, computer, e-mail and Internet usage are subject to monitoring
and review, in accordance with the Company's policy.
DATE:
Employee Signature:
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Highlights:
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What Should Be In the Handbook? Ask yourself: What Issues Keep Coming Up?
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