Business Survival Tip - Do I Need an Employee Handbook?

Why it is important to keep up with your employee handbook.

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Carl Kleimann
Episode: 026
January 20, 2010

Summary:

Texas law allows employers to change certain policies to better suit their business. But, with freedom comes obligation. Do you know your obligations toward employees? Carl Kleimann provides important details.

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Carl: Hello business owners this is Carl Kleimann from Odyssey One Source with another Business Survival Tip. Texas law gives employers the right to define and enforce their employment policies and procedures. Something called the "employment at will" doctrine allows employers to change policies at will based on the needs of the business. The only exceptions are well established rules that most employers don't even consider to be policy, such as pay, discrimination, safety, and benefits which are regulated under specific statutes.

Employment policies can be oral, written or both but important policies should always be in writing. Even the best policies are of no value if your employees are unaware of them. More importantly, employees may not be held responsible for violating a policy that they were unaware of. For example, if it is your company policy to terminate employees for repeated tardiness, you better make them aware of that policy before you hold them accountable. Otherwise, they are likely to qualify for unemployment benefits once you fire them.

Although employers have the right to change policies at will, always try to give advance notice. If a policy change alters an employee's work relationship so adversely that a reasonable employee would quit under the circumstances, your company could risk losing an unemployment claim. Unfair or poorly-timed policy changes could also result in drops in employee morale and productivity.

Above all, try to follow your policies, especially with respect to disciplinary matters. Even handed enforcement of fair policies will help avoid unemployment claims and claims of discriminatory treatment. That alone could provide an incredible return on investment in an Employee Handbook.

Work rules vary by state and not all states recognize the "employment at will" doctrine. Always have your employment policies reviewed by your legal counsel.

I am Carl Kleimann and this has been another Business Survival Tip by Odyssey One Source, ranked as the number one Professional Employer Organization three years running by the Black Book of Outsourcing. For more information on this and other issues affecting employers, please visit www.odysseyonesource.com.