A well-drafted employee handbook can be an important tool to avoid liability in employee lawsuits. The employer that clearly states policies against harassment and discrimination, outlines grounds and procedures for termination and follows these guidelines over time will be in the best position to defend against charges in these areas. Distributing a handbook to all employees ensures that the company’s critical standards are accessible to all, and that each employee will have a handy reference when questions arise.

An employee handbook can be an invaluable tool for an employer, serving to inform employees about company policies, procedures and practices and communicate expected standards of performance and conduct. A well-designed handbook can positively influence employees’ morale and promote employees’ loyalty. It can also be used to introduce a new employee to an organisation, helping the individual to fit in more easily. Additionally, the handbook can create a sense of consistency of practice that will enhance the employees’ feelings of being treated

fairly. The handbook can serve as a reference guide to help managers and supervisors take appropriate actions in a given situation. Without it, supervisory employees are left to their own devices which can lead to uninformed, inconsistent and possibly illegal decision-making.