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Employee Handbooks Make Sense For Small Employers
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Article 7: Handbook Language To Avoid
The ability to fire employees at any time for any reason is an essential feature of the business landscape. You must make sure that nothing in your employee handbook clouds the issue of “at will” employment.
A desire to create a positive tone can result in inadvertent binding obligations.
“Avoid statements such as ‘we know you will enjoy a long and productive employment here,’” cautions Katherine E. Bierma Pregel, an associate with the Washington, D.C., office of Littler Mendelson, the nation’s largest labor and employment law firm. “Such well-intentioned words can be misconstrued as creating a contract for permanent employment.”
Avoiding statements that create unintentional obligations is not enough. Your handbook should also have a statement explaining the voluntary nature of employment.
“Even the smallest of employers needs an ‘at will’ clause that communicates the fact that the employee can be terminated at any time for any reason that does not violate federal or state law,” advises Pregel. “Such a clause can help defend against claims that the employer promised employment for a certain period of time or even permanently.”
It may sound harsh to state that the employee can be fired at any time. However, such a statement can help avoid misunderstandings regarding the nature of the employment relationship.
Further, attorneys advise that every employee handbook include a form that acknowledges the employee has read and understands everything therein.
“These forms can defend against claims from employees that they were unaware of company policies,” says Pregel. “We suggest including language in the acknowledgement to the effect that the employee understands that the handbook is not a contract for employment, that employment is ‘at will,’ and that the employer reserves the right to amend the policies at its sole discretion.”
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