Should you have a policy handbook?

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Should you have a policy handbook?

Business owners regularly tell the Texas Workforce Commission that there is no reason for them to have a workplace policy handbook:  “We are just a mom-and-pop shop” or “We all get along” or  “We’ve been in business for 30 years without one.”

But Marissa Marquez explained at the TWC’s Texas Business Conferences, held in McAllen and Brownsville, that creating an effective policy handbook is the smart thing to do.

EmployeeHandbookA handbook explains the practices and rules of your business and informs employees what they must comply with. “Why wouldn’t you want that all in one place?” asked Marquez, the legal counsel to Hope Andrade, TWC commissioner representing employers.

Neither Texas nor federal law requires businesses to put their procedures and policies in writing. But when guided by a handbook, policies can be applied consistently.  Employees should receive the handbook during orientation, go through it page by page, and acknowledge in writing that they understand and accept the policies.

“Written policies are the critical foundation for proving work-related misconduct and defending the legality of your actions,” she said.  The handbook provides documentation when you have claims, lawsuits or audits.  It can help a business avoid winnable but expensive lawsuits.

Common sense is the basic ingredient when putting together an employee handbook.  Through

the use of reasonable and clearly defined procedures, you can maintain employee morale and your company’s reputation while avoiding turnover. “The rules are there to give the greatest number of people the best chance of working together well and getting the job done,” according to a TWC publication.

Texas is an employment at will state.  The handbook should refer to this and make it clear that the employer can let an employee go at any time for any reason. A written wage agreement does not interfere with at-will employment, unless the agreement “creates a definite term or duration of employment.”

Your handbook should first define full-time work so anything less than that is part-time. This is useful for determining vacation and sick leave.  Under Texas law, businesses are not required to provide vacations, paid holidays and sick leave.  The handbook should state if and how accrued leave balances will be paid out when an employee leaves. The federal Family Leave law does not apply to small businesses (less than 50 employees)  nor does the accommodation for religious needs.

“You have to protect your business. Employers have the right to discipline employees” for not following procedures, Marquez said.  Don’t deviate from the steps in your policy regarding consequences of misconduct. “When you terminate someone, and they file an unemployment claim, you have to prove they violated policy for misbehavior.”  Whether the employee was fired for swearing at customers, tardiness, excessive personal phone calls or time on social media, harassment, drug use, or non-performance, it is up to the employer to document the instances of the behavior and also of the warnings about the behavior.  If possible, take a signed statement from a firsthand witness when the misconduct occurs.

To continue reading this story by Eileen Mattei, visit the “Current & Past Issues” link on this website or pick up a copy of the March 2014 edition of Valley Business Report.

Freelance writer Eileen Mattei was the editor of Valley Business Report for over 6 years. Her articles have appeared in Texas Highways, Texas Wildlife Association, Texas Parks & Wildlife and Texas Coop Power magazines as well as On Point: The Journal of Army History. The Harlingen resident is the author of five books: Valley Places, Valley Faces; At the Crossroads: Harlingen’s First 100 Years; and Leading the Way: McAllen’s First 100 Years, For the Good of My Patients: The History of Medicine in the Rio Grande Valley, and Quinta Mazatlán: A Visual Journey.

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