Ask a Boston Business Lawyer, Part 1: Do I need an Employee Handbook?
Posted by Michelle Grenier on Thu, Feb 17, 2011 @ 03:36 PM
Do I need an Employee Handbook? What difference will an Employee Handbook make?
A well drafted Employee Handbook is a great tool to use (a) in the pursuit of "Dispute-Avoidance," (b)to deter employees from wrongful activities, and (c) to defend against claims when employee-employer disputes arise.
Unfortunately, often, human resources professionals draft Employee handbooks, without advice of legal counsel. Many human resource professionals correctly believe, that good human relations can produce loyalty and high productivity amongst employees. However, when disgruntled employees file claims, sue in court or allege mistreatment, good intentioned policies, expressed generously in a poorly drafted Employee Handbook, can be used against the employer and can put employers at risk and at an unfair disadvantage.
Employers can utilize well-drafted Employee Handbooks for purposes, including,
(a) communicating that they care about their employees;
(b) informing employees about benefits to which they are entitled; and
(c) use as tool to educate employees concerning the basic rules and policies of the company.
Employees are less likely to (a) complain. (b)become disgruntled employees, or (c) seek assistance from government agencies, unions or lawyers, when they (1) are informed clearly of benefits to which they are entitled; (2) receive the benefits to which they are entitled as communicated to them; and (3) are clear as to what is expected of them. These issues can be addressed in a well-drafted Employee Handbook. When these elements are satisfied, employers are more likely to win lawsuits that complain about discipline or discharge.
Employee handbooks can also be deemed to embody the “contract” between employer and employee. When employees have no real opportunity to negotiate terms of the terms of their employment, courts may interpret any ambiguous terms in an Employee Handbook against the employer, because the employer drafted it. Thus, having a well-drafted Employee Handbook is important.
In addition, employers can use a well-drafted Employee Handbook to defend against certain employee claims, and show, amongst other things, that the rules and procedures exist, and are known by the employees.
In sum, well-drafted Employee Handbooks are useful in avoiding misunderstandings and thus, disputes and can deter employees from seeking outside assistance and bringing claims. In addition, they are helpful in defending employers positions when certain claims are made.
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