However, if not done right, an employee handbook can create perils. Here are some crucial points to review before creating or revamping your handbook.

• First, it should be a living, breathing document, not just one you create and forget.  Conduct annual audits to confirm there were not new laws enacted or policy changes within your workplace that should prompt a change in the handbook.
• Make sure it contains language stating that it's not a contract and does not guarantee employment for any specific length of time.  It should contain a statement making it clear employment is at the will of the employer and the handbook does not change that status.
• Make it clear that the policies contained in the handbook are guidelines only and are subject to change, and that you retain the right to make revisions at any time and without notice.
• Include an acknowledgement page containing a statement that the employee understands that it's his or her responsibility to read the handbook and that he or she understands the contents.  This page should also reiterate the at-will nature of the employment and that the employee agrees to follow the policies contained in the handbook.  Once the employee signs this, it should be placed in his or her personnel file.
• Follow your handbook.  It's better to not even have one than to produce one and not follow it. Know your policies, put those in the handbook and then follow them consistently.

Making sure your employees are clear on the “must dos” and “must haves” of your workplace is a must.  When done right, the benefits of having a handbook far outweigh the dangers.

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Shawna L. L'Italien is a business law attorney with Harrington, Hoppe & Mitchell, Ltd.