How effective are electronic policy manuals?

Clearly written policies that are regularly reviewed, can be an effective HR management tool and a good defense against employee lawsuits, explains EJ Sarma

Managements should not interfere with the current rights or expectations of the employees when changing their policies. An employer planning to declare all Saturdays as off for reasons of cost-cutting also wanted to reduce the privilege leave available on the grounds that employees are enjoying more holidays. What they forgot was that they are infringing on the rights of paid leave. Even if one wanted to do it one must give reasonable notice.

Employers need to keep in mind legal considerations when making policy revisions in order to support the existence or modification of a contract.

When modifying their policies and procedures manuals or specific policies contained therein, employers must take steps to ensure that all employees understand that the policy changes are applicable to them. In one case, the employer implemented a revised manual that stated employees are required to give longer notice. One employee, however, specifically rejected the terms. After he was fired, he sued his employer for wrongful termination based on an alleged breach of an implied contract of employment. The company lost the case ultimately as the court held that there was rejection of new terms by the employee.

Electronic policy and procedure manual

Many wonder whether they can implement an electronic policy and procedure manual. While there appears to be no current legal impediments in doing so, there are a number of practical issues that must be considered by employers before proceeding in this direction. Initially, employers must bear in mind that the main purpose of the policy and procedure manual is to ensure effective communication with managers and supervisors, i.e., to provide them with proper guidance regarding their policies, procedures, programs and guidelines. Will the electronic manual enable an employer to meet these objectives? For example, do all managers and supervisors have a computer at their workstation to readily access the manual? If not, is there a computer available at some centralised location to provide such access? Additionally, employers must consider whether all management representatives are properly trained on how to use the computer — if not, this could lead to employee relation problems, and possibly even to charges of unlawful discrimination, if some protected class members are adversely affected by lack of training or access.

Areas to cover

The list is prepared keeping in mind that most Indian software organisations have perations in the US and are not aware of the legal risk of inadequate or absence of proper manuals

• Organisation structure
• Employee hiring and new employee orientation
• Transfers and relocation to international operations
• Work permit/ visa processing rules, salary/ allowances
• Normal and medical leave
• Healthcare benefits
• Holidays
• Performance appraisals
• Resignations and terminations
• Sexual harassment
• Training/tuition reimbursement
• Workplace rules and guidelines
• Contracts and agreements
• Telephone policies
• Information Technology
• Electronic mail policy

In choosing policies, you should consider the following issues:

The culture of your organisation and its recurring issues or problems: Any memo on policy topics (such as vacation and holiday schedules) and past practices (ie, what you have done in the past to address a particular employee relations issue); and the HR practices followed by other organisations in your industry (including vacation lengths and leave allowances).

Most employers develop policies on: Pay /benefit procedure, benefits (including any paid vacation, sick leave, holidays, and other forms of leave), meal and rest breaks, personal conduct (work rules), attendance and punctuality, sexual and other forms of harassment, equal employment opportunity, disciplinary procedures, and termination. In addition, many employers include policies on performance appraisals, smoking, safety procedures, appropriate dress code and appearance, use of communications systems and drug and alcohol use.

Is the job ever complete?

Even when you have finished drafting or updating your policies, your job is not complete. The policies should be reviewed by your legal counsel, to ensure that they comply with the state and federal employment law before they are finalised and distributed to employees. Further, you should review the policies on a regular basis, to make sure they continue to comply with applicable law and the needs of your organisation. New laws, regulations and court cases can affect both policy language and how you implement the policies. Most experts suggest a thorough review of your policies at least once a year and the use of a notification service or publication to keep you posted during the interim. Finally, when policies are introduced or revised, you should distribute and thoroughly explain them to all employees.

Clearly written policies that are regularly reviewed can be an effective HR management tool and a good defense against employee lawsuits. In contrast, policies that are poorly drafted or applied can have exactly the opposite effect. They can lower morale and become evidence in the court of law. The key question, therefore, becomes not whether to have written policies at all, but whether management is willing to invest the necessary amount of time and effort to make sure they are carefully drafted and properly applied.