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 Well-written
policies can both serve as an effective communication device and
help you stay away from legal action or at least give you a better
chance against prevailing law suits, says EJ Sarma
Do
you have a HR policy manual? When was the last time you reviewed
your organisation’s HR policies? Writing or updating policies
is at the bottom of a lengthy “to-do” list. On one hand
HR experts advocate written policies as a way of communicating an
organisation’s values and practices to employees, while a growing
number of attorneys are warning their clients that poorly drafted
policies may land them in court. So, whom to believe? The short
answer is believe both. Upon closer consideration, these views are
not contradictory. Well-written policies can both serve as an effective
communication device and help you stay away from legal action or
at least give you a better chance against prevailing law suits.
What
is a manual?
Sound
employment policies provide the framework within which an organisation
governs its employee relations. Before one talks of corporate governance
better take care of employee governance through policies and procedures.
A manual guides both managers and employees as to what is expected
and can prevent misunderstandings about what is permissible and
will go well. 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 organisation 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.
A
manual is a written document that contains the information and instructions
pertaining to the work and conduct. Policy manuals serve as important
communication tools. In my experience I have always found that existence
of written down document makes people management simple. Even the
toughest employee can be convinced on any issue if he or she can
see that the policy exists and the management is consistent in enforcing
or rather implementing it. 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 a 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 organisation 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 the management’s right to update,
change unilaterally and implement all policies as the organisation
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.
Different
from employee handbook
Corporate
human resources policies and procedure manuals and employee handbooks
are different documents with different content and objectives. The
first is a document that presents the organisation’s policies
and procedures. The statements in this manual are usually very detailed.
Policies and procedures manuals are tools designed to acquaint managers
and supervisors with the organisation’s policies and procedures
and to help them carry out their day-to-day responsibilities.
An
employee handbook, on the other hand, is a document that introduces
them to the organisation and familiarises them with the guidelines
and benefits that affect the employment relationship. Although statements
of policy appear in both policies and procedures manuals and employee
handbooks, the latter is usually more abbreviated. Moreover, the
topics covered in policies and procedures manual are often exhaustive,
whereas the subjects covered in an employee handbook typically are
selective.
Employers
should avoid developing one document to serve as both an employee
handbook and a policies and procedures manual.
Importance
of written documents
Some
corporate decision makers prefer not to develop written policy statements,
reasoning that if they put a policy into writing, the company must
follow it under all circumstances, even when doing so may be deleterious.
However, unwritten policies can lead to inconsistent treatment of
employees which can trigger discrimination complaints and increase
the chances of litigation.
Preparing
the policies and procedures
manual
Preparing
human resources policies and procedures manual is a complex task
requiring several steps. These steps typically include selecting
a project coordinator; establishing a policy committee; determining
the topics to be covered in the manual; gathering information regarding
these topics; deciding how these topics will be presented; drafting,
reviewing, obtaining approval for the policy drafts and producing
the manual.
(to
be continued next week)
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