But no staff other than managers have seen it. Young doesn't give out the lengthy handbook because he is concerned it may be used as a weapon in a legal action. Because employers are responsible for preparing the handbook, courts usually interpret any vague provisions in favor of employees if they sue. In addition, listed disciplinary procedures, if not followed to the letter, can be used to contest a firing. However, loosely defined policies can also work against an employer.
Courts generally view both written and verbal policies as a contract.
Verbal policies can be implied or given by someone with no authority to make promises. A written document is the company's best chance of not having a court case become the owner's word against that of the employee. From the standpoint of the firm's bottom line, therefore, a compelling reason to have a good handbook is to prevent or settle disagreements and avoid legal disputes, particularly in the areas of firing and discipline. To avoid legal pitfalls in the wording of these sections, insert a disclaimer. A disclaimer should also appear when there is any mention of firing and disciplinary procedures.