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A handbook can be classed as part of the employment contract. If a handbook is expressed to be contractual, it will be treated as though all of its policies were included within the employee's contract, so the employee will be strictly bound by them.
While a company's policies themselves are not legally binding contracts, the policies must nevertheless be followed as a practical matter. Policies and procedures are necessary for employers to deal with the difficult but essential area of workforce management.
The offer letter, handbook and other documents do not constitute an employment contract. A statement regarding employment is at will and either party may terminate employment at any time, and for any reason provided that no local, state or federal laws are violated.
Though not required by law, employers should make every effort to receive signed handbook acknowledgments from all employees when first hired and at any time the handbook is updated.
Employee handbooks are also used as a way to protect the employer against certain claims, such as unfair treatment claims. Unless the text of an employee handbook clearly indicates otherwise, an employee handbook can be considered a legally binding document between an employer and their employees.
I acknowledge that I have received a copy of the (Your Company Name) Employee Handbook dated: (date). I understand that this employee handbook replaces any and all prior verbal and written communications regarding (Your Company Name) working conditions, policies, procedures, appeal processes, and benefits.
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.
Even if an employee handbook creates an employment agreement, a court will not enforce the agreement if it violates the law. One common reason that agreements are unenforceable is that they are so broad that they interfere with the employee's rights.
A rule that employee handbooks and their contents are confidential and may not be disclosed to third parties violates the Act, unless tailored to protect specific employer proprietary information unrelated to terms and conditions of employment.
An employee acknowledgement or policy acknowledgement form is a simple form employees are asked to sign to acknowledge that they have reviewed and understood the company's policies as expressed in onboarding material, the employee handbook, or documentation announcing policy changes.