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Is an Employee Handbook a Contract?

Many employers wonder when they begin the process of creating an employee handbook or policy manual whether they are just creating a complicated set of requirements that will come back to haunt them later on.  This can deter or delay them from the very useful exercise of spelling out their expectations and processes for employees.

The good news is that almost uniformly, employee handbooks are not considered a binding contract between employer and employee.  There are certain things you should include to be sure of this, including:

• An express disclaimer that the handbook is not a contract, and that employment is "at will;"
• A paragraph that clearly states that the company may change, add or delete policies at any time at its discretion; and

• A signature page that does not suggest an agreement, but instead is framed as an "acknowledgment of receipt."

Learn more here about employee handbooks in Massachusetts.

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