The wording of your employee handbook may hold the key. A number of courts have held that employee handbooks can be considered legally enforceable contracts unless the handbook specifically states that it is not. According to experts on employer-employee relations, the handbook must state something to the effect that it "is not intended to be An employee handbook isn't a contract, nor is it a legally binding document. But in a legal proceeding, it helps to have one. But in a legal proceeding, it helps to have one. Take, for instance, the case of an employee suing a company for allowing a culture of sexual harassment — a particularly timely example. Within the last decade, courts in several states have held that in appropriate circumstances, representations made by employers in employee handbooks can create binding implied employment contracts. When a court recognizes the contractual enforceability of an employee handbook, all of the policies contained in that handbook are binding upon the The court did not decide whether the paid time off policy in the city of Plainview's employee handbook constitutes a contract. The court said that whether Hall is entitled to be paid for his 1,778.73 accrued PTO hours is based on a contractual right. Hall could not recover his accrued PTO without a valid contract entitling him to payment. An employee handbook is a document that communicates your company's mission, policies and expectations. Employers give this to employees to clarify their rights and responsibilities while they're employed with the company. To help you build the best employee handbook, we crafted a template to give you a headstart in creating your own document. Some employee handbooks will specifically state that parts of the document are contractual, others won't. In the case of DfT vs Sparks, it simply stated that some parts would be contractual if they were "apt for incorporation" - but this ambiguity is what led to the case being brought to court. Legally, the key factor in determining whether a company handbook constitutes a contract is if the employer has issued a guarantee to the employee or if the employee promises anything to the employer. Employment handbooks and their enforceability are important when it comes to dealing with employee discipline or termination. Others state quite clearly that the handbook does not form part of the contract of employment. Where the employer provides both a contract and a handbook, it can be useful to include a provision in the contract that, if there is any inconsistency between the terms of the contract and the handbook, the terms of the contract will apply. Summing Up Employee Handbook Guidelines. There are several key topics you must include in your business's employee handbook. First, the basics. Include a hierarchy chart so that employees can easily contact or get in touch with other employees. Create different contract types for full-time, part-time employees, interns, and so on. Make Employee Handbook. By signing this Agreement, Executive acknowledges that he has received and read the Company 's employee handbook. Executive agrees to abide by all company policies and procedures. Part-time employees are those who work fewer than [30 hours] per week. Full-time and part-time employees can have either temporary or indefinite duration contracts. Full-time employees under an indefinite duration contract are entitled to our company's full benefits package. [Insert this if empl