An employee manual (or personnel policy handbook) is a document that collects in one place the policies and procedures governing employee behavior and operations within the organization. An employee manual is frequently used as an aid in training new hires, and it is also a useful reference for current employees in ambiguous or difficult situations. Many organizations require their employees to read the manual and sign a consent form indicating their understanding of the manual and their intention to live by its rules and regulations. However, courts routinely hold that employee manuals do not form a contract between employer and employee and are not legally enforceable, and the contents of the manual are subject to change at any point. When manuals do change, it is important to provide copies of the new manual to current employees as well as new hires so everyone remains up-to-date on the latest policies and procedures.
Most employee manuals contain a standard selection of sections, including (but not limited to) a greeting from the company president/CEO/or chairperson, discrimination and harassment policies, employee classifications, pay and overtime rules, hiring and recruiting policies, guarantee of equal opportunity, benefits (health, vacation, etc.), disciplinary and grievance procedures, privacy policies, a statement that workers work at-will, and an acknowledgement form for the employee to sign. These sections are designed to provide a basic framework for employees and to provide cover for employers in the case of dispute or legal action against them.
