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When was the last time you reviewed your organization's policies? If you're like many employers, writing or updating policies is at the bottom of a lengthy "to-do" list. And, you may even question the value of having written policies because of the apparently conflicting advice concerning their usefulness. On one hand, many HR experts advocate having written policies as a way of communicating your organization's values and practices to employees. Alternatively, a growing number of attorneys are warning their clients that poorly drafted policies may land them in court. So, who should you believe? The short answer is both groups. Upon closer consideration, these positions are not contradictory. Well-written policies can both serve as an effective communication device and help you stay out of court, or at least give you a better chance of prevailing. The following questions and answers will help define the underlying issues and make clear why written policies that are carefully developed, updated, and applied are an effective tool that you need.

1. Why are written policies important?

Sound employment policies provide the framework within which an organization governs its employee relations. A policies and procedures manual guides both managers and employees as to what is expected and can prevent misunderstandings about employer policy. In addition, supervisors and managers are more likely to consistently apply policies that are clearly communicated in writing. 

It is true that written policies, like any record, can be used against an organization in a lawsuit. Poorly drafted policies often become the main evidence presented when employees allege that the policies were in fact a contract that the employer violated. However, policies that are carefully written so as not to be contracts actually should protect against these claims and not be a problem. (See number 4, below.) In addition, carefully written policies can be used to illustrate your commitment to a positive work environment and nondiscriminatory employment practices. (See number 3, below.)

2. Are we required to have written policies?

Although written policies in general are not legally required, certain policies may be required, or at least be considered an important component in helping employers establish good faith compliance with federal and state law. For example, the Supreme Court has indicated that employers may protect themselves against liability for sexual harassment by having clearly articulated policies against sexual harassment that include effective complaint procedures. In addition, the Family and Medical Leave Act requires covered employers to provide written information regarding employee rights and employer obligations under the Act. Similarly, certain federal contractors must have written equal employment opportunity policies. And finally, many state laws require written harassment policies and policies informing employees about compensation issues. 

3. Does every organization need written policies? 

As a general rule, every employer, except maybe those with fewer than 15 employees, should have written policies. Employers with 15 or more employees are covered by federal discrimination laws (such as Title VII and the Americans with Disabilities Act) and most state discrimination laws. Written policies are a good starting point to show your commitment to nondiscriminatory employment practices. For example, a performance review policy can show the job-related criteria used to evaluate employees and any safeguards used to ensure the process is conducted in a fair and objective manner. 

Smaller employers should at least consider creating a handbook since it is likely they already have some policies in writing. For example, employment offer letters may explain vacation and sick leave accrual while other items, like a posted memo, may outline pay procedures. Thus, to ensure distribution to all employees, even the small employer is well advised to compile these memos into a handbook that is given to every employee.

4. Will we create a contract if we have written policies?

The simple act of putting your policies in writing should not create a binding contract if the policies are written as guidelines that explain generally or typically what your requirements are and how employees normally will be treated. However, you can create a contract by using language that conveys rigid rules that must be followed exactly as written in all circumstances.

Therefore, you should build flexibility into your wording and steer clear of any promises that could be interpreted as a contract. Your policies should not, for example: 

• State that the organization will "only" or "always" do something or "must" act in a particular way; 

• Describe employees as "permanent";

• State that employees will be terminated only for "cause"; 

• Make promises of job security; or

• Use all-inclusive lists, such as in disciplinary procedures or work rules.

Instead, you should use terms such as "generally," "typically," "usually," and "may" so that managers have flexibility in interpreting and applying the policies. In addition, you should specifically retain management's right to update, change unilaterally, and implement all policies as the organization sees fit. Finally, you should include a strong "at-will" statement that clearly specifies that all employees (who do not have contracts or collective bargaining agreements specifying otherwise) may quit at any time and for any reason or may be terminated at any time and for any reason.

5. What is the difference between a supervisory policy manual and an employee handbook? Which should we have?

A supervisory policy manual generally is intended as a guide for managers and supervisors and contains information that they need to implement the organization's policies. Thus, a supervisory policy usually provides a general statement of policy followed by several comments that instruct managers how to apply that policy.

In contrast, an employee handbook is designed for broad distribution to all employees. It is typically intended to provide general information about the organization's practices, benefits, hours of work, pay policies, and work rules. It usually does not include information about supervisory procedures.

At a minimum, you should have an employee handbook that explains your policies to employees. Many organizations, especially as they grow, also have a supervisory policy manual to ensure that their managers understand how to implement the policies. As a practical matter, having supervisory instructions may be especially prudent in today's legal climate where any inconsistent application of policy can result in a discrimination claim.

6. What policies should we include?

In choosing policies to include, you should consider the following points:

• The culture of your organization and its recurring issues or problems;

• Any memos on policy topics (such as vacation and holiday schedules) and past practices (i.e., what you have done in the past to address a particular employee relations issue); and

• The HR practices followed by other organizations in your industry (such as vacation lengths and leave allowances).

Most employers develop policies on the following topics: 

• at-will employment, 

• pay procedures, 

• benefits (including any paid vacation, sick leave, and holidays, and other forms of leave),

• meal and rest breaks, 

• personal conduct (work rules), 

• attendance and punctuality, 

• sexual and other forms of harassment, 

• equal employment opportunity, 

• disciplinary procedures, and 

• termination.

In addition, many employers include policies on performance appraisals, smoking, safety procedures, appropriate dress and appearance, use of communications systems (including the proper use of telephones, computers, e-mail, and Internet access), and drug and alcohol use.

Remember, your policies should be considered dynamic, not static. You may need to add to them, revise them, and even delete them as your organization grows and changes.

Is the Job Ever Done?

Even when you're finished drafting or updating your policies, your job is not complete. The policies should be reviewed by your legal counsel to ensure that they comply with state and federal employment law before they are finalized and distributed to employees. Further, you should review the policies on a regular basis to make sure they continue to comply with applicable law and the needs of your organization. New laws, regulations, and court cases can affect both policy language and how you implement the policies. Most experts suggest a thorough review of your policies at least once a year and the use of a notification service or publication to keep you posted during the interim. Finally, when policies are introduced or revised, you should distribute and thoroughly explain them to all employees.

Clearly written policies that are regularly re-viewed can be both an effective employee relations tool and a good defense against employee lawsuits. In contrast, policies that are poorly drafted or applied can have exactly the opposite effect. They can lower morale and become evidence against you in court. The key question, therefore, becomes not whether to have written policies at all, but whether you are willing to invest the necessary amount of time and effort to make sure they are carefully drafted and properly applied.

Instant HR Policies is a one-stop resource for creating fast, plain-English policies. It combines the simplicity of an electronic document with up-to-date, legally researched policy language to help you create or update your policies quickly and efficiently. Instant HR Policies includes 69 model policies from hiring to termination.

• Business Owners
• Managers
• HR Professionals

All of the information in Instant HR Policies is copyrighted, but we are making a special exception for employers who use the model policies to create or update their internal manuals or handbooks. These ready-to-go policies should not be shared with other organizations either for profit or free of charge.

• Consultants/Lawyers

If you’re a consultant or lawyer who wants to use Instant HR Policies to create a manual or handbook for your clients, you simply need to buy one copy of Instant HR Policies for each client in order to comply with our copyright. For more information about the copyright and appropriate use of Instant HR Policies, please call us at 1-800-437-3735.

Sound employment policies provide the principles by which an organization governs its employee relations in a fair and consistent manner. Having all policies and procedures in one manual helps employees be aware of what is expected and can prevent misunderstandings about employer policies. In addition, supervisors and managers are better able to implement policies that are clearly communicated in writing.

Written policies also help employers document compliance with the unending tangle of employment laws and regulations.

For example, the Supreme Court has indicated that employers can help protect themselves against liability for sexual harassment by having an effective policy against sexual harassment that includes a complaint procedure. (Instant HR Policies contains a harrasment policy, called PRODUCTIVE WORK ENVIRONMENT.)

In addition, the federal Family and Medical Leave Act requires employers to provide written information regarding the employee rights and employer obligations under the Act. (Instant HR Policies includes such guidelines under LEAVES of ABSENCE.)

Supervisory policy manuals vs. employee handbooks

The 69 model policies provided in Instant HR Policies are intended to help you create a supervisory policy manual.  As a general rule, a supervisory policy manual is a guide for managers and supervisors and contains information that they need to implement the organization’s policies.  Accordingly, each policy provides a general statement of policy (identified as the “Policy”) and is followed by several comments (identified as “Comments”) that instruct managers how to apply the policy.

In contrast, an employee handbook is designed for broad distribution to all employees.  It is typically intended to provide general information about the organization’s practices, benefits, hours of work, pay policies, and work rules.  It usually does not include information about supervisory procedures.

Although the Instant HR Policies, as written, is designed to create a supervisory policy manual, it also can be easily modified to create an employee handbook.

How to create a supervisory policy manual using Instant HR Policies

Instant HR Policies includes 69 model policies covering most employment situations that may arise, from hiring to termination, vacations, leaves of absence, and disciplinary procedures. 

The language used in each policy is drafted to reflect applicable federal requirements and the type of language typically used by employers across the United States.  You can use the model policy language “as is” or tailor it to reflect your organization’s culture and to conform to your other policies. 

For example, the model Vacations policy, Policy 502, requires employees to submit their vacation plans to their supervisors at least four weeks in advance of their requested vacation date.  If your current vacation policy requires more (or less) notice, you would modify that section of the policy to reflect your organization’s practice.

Each model policy is divided into two parts: Policy and Comments.  The Policy section provides a short statement of the organization’s policies.  The Comments section offers details and explanations about how supervisors should implement the policy.  You should use both the Policy and the Comments to create your final supervisory policy.

How to create an employee handbook using Instant HR Policies

An employee handbook serves a different purpose than a supervisory policy manual.  Typically, an employee handbook focuses on the policies that affect employees and that govern their relationship with your organization.

Although the model policies in Instant HR Policies are intended primarily to be used to create a supervisory policy manual, they also can be used in an employee handbook by removing the references to supervisory procedures. 

Generally, you can use the Policy statements “as is.”  Review the “Comments” section and remove any references to what supervisors and managers are expected to do so that the information is more relevant to employees.

For example, the Comments section in the model Orientation and Training policy, Policy 202B, includes several steps that the Human Resources Department and supervisors should take to develop and implement training programs.  Most employers would not include any of this information in an employee handbook since it does not affect employees directly.

In contrast, the Policy statement and all of the Comments in the model harassment policy, Policy 201A, should be used in both a supervisory manual and an employee handbook since they contain pertinent information on reporting sexual and other forms of harassment that all employees should know.

Choosing individual policies

Not every organization needs all 69 policies.  If you currently have a supervisory manual or employee handbook, compare your policies to the Instant HR Policies model policies to decide which policies  you might want to add or update. 

If you don’t have a formal policy and procedures manual, you should begin by looking through the Table of Contents to determine which policies you want to include in your manual.

In choosing policies, you should consider the following issues:

• the culture of your organization and its recurring issues or problems;

• any memos on policy topics (such as vacation and holiday schedules) and past practices (i.e., what you have done in the past to address a particular employee relations issue); and

• the HR practices followed by other organizations in your industry (including vacation lengths and leave allowances).

At a minimum, most employers develop policies on:

• at-will employment,

• pay procedures,

• benefits (including any paid vacation, sick leave, holidays, and other forms of leave),

• meal and rest breaks,

• personal conduct (work rules),

• attendance and punctuality,

• sexual and other forms of harassment,

• equal employment opportunity,

• disciplinary procedures, and

• termination. 

In addition, many employers include policies on:

• performance appraisals,

• smoking,

• safety procedures,

• appropriate dress and appearance,

• use of communications systems (including telephones, computers, e-mail, Internet access), and

• drug and alcohol use.

Instant HR Policies is the result of the team effort of our editorial staff of HR professionals, policy writers, and legal experts. Our staff has distilled years of research and analysis of thousands of court cases, regulations, legislation, and employment policies into the easy-to-use Instant HR Policies.

The language used in each policy is drafted carefully to reflect applicable federal requirements and the type of language typically used by employers across the United States.

In addition, our legal editors, experienced employment law attorneys with the Chicago-based firm of Vedder Price Kaufman and Kammholz, have reviewed the language of each of the model policies. The detailed legal research and writing has been done for you.

However, that said, a special note of caution is always in order. No policy manual or handbook should ever be issued or revised without a final review and check-off by your own legal counsel.