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: Charles A. Krugel, Labor & Employment Law, HR Law

Employment Policies and Handbooks-To Be or Not To Be, That is the Question

By charlesakrugel

Among my clients and many other businesses the question often arises: Do we need written employment policies or employee handbooks or manuals? The following is what I usually advise and why.

In general, there is no statute which mandates that business have such policies or manuals. But, relative to public sector contracts, most government agencies require that a business have such policies for affirmative action purposes. Additionally, many employment practices liability insurance carriers require, or very strongly urge, policy holders to institute employment policies. So, practically speaking most businesses that wish to engage in government work, or receive grants or some type of outside funding, or carry employment practices liability insurance, must have policies or manuals.

In other words, government agencies, many outside funders and insurance companies want to see a business? human capital related documents as much as that business? financial records. Other than those reasons to have written policies, it’s not an absolute necessity for a business to have documented employment policies.

Businesses that wish to engage in structured planning and development, or that have grown to point where ad hoc policies and procedures are too inefficient and inconsistent, however, should create documented policies or handbooks to avoid operational chaos and protect themselves from 3^rd parties like employee side attorneys or regulatory (government) agencies.
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Full post as published by Charles A. Krugel, Labor & Employment Law, HR Law on March 10, 2008 (boomark / email).