Employment Manual: Protection from Litigation

Employment Manual

Having an employment manual is significant to both the employee and the employer. An employment manual, or sometimes called an employee handbook, contains detailed policies, procedures, expectations and guidelines that are implemented in a company so it acts as a guide for employees. For employers, this serves as a protection during labor disputes and other problems regarding employment such as lawsuits involving terminations.

A well-written employment manual must include all the company's terms and conditions regarding employment. These rules are intended to prevent sexual harassment, employment discrimination, and other forms of discrimination in the workplace.

A typical employment manual may include the following:

• The information in the manual is subject to change and it is the employer's prerogative to make alterations and improvements to the contents of this manual and any changes may eliminate, revise, or supersede one or more policies in the handbook.


• Anniversary date


• Classification of the employee
  
  Three classifications of employees:
  
  
  • Regular full-time
    
    An employee who works a usual 40 hours per week on a regularly scheduled basis
  
  
  • Regular part-time
    
    Any employee who works on either an irregular basis or a regularly scheduled basis and works less than the normal workweek
  
  
  • Temporary
    
    Any employee who is not entitled to receive regular benefits and is hired for a three-month period, may be extended for another three months or less if necessary. Temporary employees may be either part-time or full-time.


• Prohibition of conflicts of interest


• Dress code
  
  Employees are expected to follow a certain dress code imposed by the company.


• Policy regarding drugs and alcohol
  
  Alcohol and illegal drugs are prohibited in the workplace.


• Job duties
  
  The area of responsibility of each employee must be included in the employment manual. However, they may be asked to do any duty that they are capable of.


• Employee benefits
  
  Many benefits are provided for eligible employees. Details of the programs that provide these benefits may also be included in the employment manual
  
  
  • Vacation benefits
    
    Vacation time-off with pay is given to eligible employees for them to have an opportunity to rest and relax. The amount of paid vacation time for employees increases every year.
  
  
  • Holidays
    
    Eligible employees are entitled to receive paid holiday time-off immediately upon the assignment of an employee to an eligible classification of employment.
  
  
  • Medical leave of absence
    
    An employee who has been working continuously for the company for at least six months may be granted a period for unpaid leave of absence for illness or pregnancy upon writing an application.


• Outside employment
  
  Employees who work full time must ask permission before engaging in other employment which may be denied.


• Overtime compensation


• Payroll
  
  It should be included in the employment manual when pay will be given and that employees should keep accurate records of the time they have worked.


• Policies on settling disputes regarding employment and applying disciplinary actions


• Sexual harassment
  
  It must be stated in the manual that any form of sexual harassment is prohibited in the workplace. If situations like these happen, it must be reported immediately. Under company policy, sexual harassment is a major violation and must be resolved through disciplinary actions.


• Smoking
  
  Smoking prohibited in the office area at any time.


• Rules regarding the use of software and hardware


• Terminations
  
  The termination process should be included in the employment manual and must be treated in a professional and confidential manner by everyone concerned.


• Work schedule
  
  The schedule of each employee should be included in the employment manual and the company has the right to change work schedules to accommodate the needs of the business.


• Receipt for manual
  
  An employment manual must include a testimony from the employee stating that he/she has received the copy of the employment and work policies of the company. The employee must state that he/she have read and understood all the information contained in the manual, along with the date and his/her signature.
  
  Preparation for an effective employment manual requires many skills because it is very important that all possible events are covered and that it will benefit both the employer and the employee.
  
  Employment manual preparation may be tricky at times because there may be inclusions that would contradict with the labor laws, which is unlawful, considering that it is a legal document.

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