New-hire orientation often includes passing out employee handbooks and asking employees to sign an acknowledgement form indicating that they understand the company's policies. By signing the acknowledgement form, employees also state that they understand the policies could change or that they could be interpreted differently, depending on the employment issue, explains MRA.
That being said, employers hand out workplace policies that contain a number of disclaimers that are important to the employer-employee relationship. Employee handbook disclaimers allow the company to make timely revisions at a reasonable cost. A declaimer tells the employee that the handbook is not to be construed as a contract, states the Society for Human Resource Management.
Employee handbooks generally come with disclaimers related to employment-at-will and about the validity of the policies contained in the handbook. A standard disclaimer about employment-at-will might state, "Nothing in this handbook should be construed to imply there exists a contract of employment. Employment with ABC Company is strictly at-will and can end upon the discretion of the employer."
Advertisement Article continues below this adOther disclaimers aren't set out separately from the handbook's text and instead are incorporated into the language. For example, the employee handbook might contain the statement, "At the company's discretion," which means the employer has the right apply the policy, change or modify it, or eliminate it, based on the circumstances.
Disclaimers are important because they company leaders the freedom to interpret policies as they see fit. This doesn't mean the company can simply ignore policies in the handbook or render an illogical conclusion when an employment matter arises. It means that there's some room for interpretation when employment issues aren't clear and the company can't be entirely sure how the policy should be interpreted.
Advertisement Article continues below this adFor example, if the company says employees may use no more than three personal days each year for absences due to inclement weather, there needs to be some leeway if the region experiences weeks of impassable roads due to uncharacteristically high snowfalls. In this case, the employer has the right to modify the number of days an employee receives for absences due to bad weather or to provide employees with time off that's not charged against the employee's leave bank. Multistate handbook disclaimers provide managers the flexibility to adapt policies to the local needs and conditions of branch offices or factories in different parts of the country.
Most employees serve at the will of an employer and can be fired at any time if legally defensible, as explained by the National Conference of State Legislatures. The employment-at-will disclaimer is one that companies state in handbooks and on employment applications. The purpose is to protect the employer from claims that an employee's job was considered permanent. Employment-at-will disclaimers make it clear that the employee fills the job at the employer's discretion and that the employer can decide at any time to sever the employment relationship. This type of disclaimer is important because employees who are fired might raise issues such as wrongful discharge or termination.
If the company fired an employee without a reason, it's well within its rights to end the working relationship. A disclaimer can show that the company told the employee – from the first day of work – that it was not a permanent job and that he was an at-will employee.
Advertisement Article continues below this adIn fact, the U.S. Circuit Court of Appeals for the 10th Circuit ruled in favor of the employer in a 2009 case, Compton vs. Rent-a-Center. The former employee claimed the employer breached its contractual duty by discharging him. The court ruled that as long as the employer's disclaimer concerning at-will employment was clearly stated, the employee couldn't assert that the conditions of his employment constituted a contractual agreement.
Many companies don't have the resources to update their handbooks as often as they would like. Therefore, a disclaimer regarding the company's right to change the policies is important because of timeliness and application of current laws and regulations. Employers also need to be able to modify their policies in light of organizational changes such as growth, downsizing or expansion.
A disclaimer protects the company's interests when it amend its workplace policies to suit the current workforce. In addition, labor and employment laws change and employers who can't change the handbooks every time new legislation goes into effect must have a disclaimer that permits the application of new workplace laws.