Employment Policies and Manuals

Some states have held promises made in employment manuals to be part of a binding contract. For this reason, employment manuals that state that employees will only be fired for a good reason may eventually lead to an employee suing for breach of contract. Some courts have recognized an implied promise not to terminate except for good cause, based on employee manuals or even the oral promises of supervisors.

For these reasons, employment contracts and employment manuals should expressly state that the employment relationship is terminable at the will of either party. Employers should include a specific statement in employment handbooks, manuals, and applications, stating that the employer reserves the right to terminate employees at will.

The statement should be prominent and unmistakable. This statement, or "disclaimer," should be in large bold letters. It should not be buried at the bottom of a form, or it may be held unenforceable.

The statement should also state specifically that oral promises or statements will not change the at-will nature of the employment relationship.

You should also consider requiring or permitting employees to choose alternative dispute resolution as a solution to workplace problems. A link to information on ADR is provided on this page.

Copyright 1996 David Trieloff, Esq.

Mr. Trieloff passed away on April 16th, 1998 and is sadly missed by the staff of the Business Know-How where he was a member of the volunteer staff.