Many companies adopt employee handbooks and never update them. Laws regulating employers change frequently. The growth of a company may trigger the application of employment laws that did not apply to the company when it was smaller. Company policies also may change over time. Employers should revisit their handbooks at least annually to ensure that they remain up-to-date and accurate. 

 

Failure to update a handbook could result in exposure to the employer for failing to satisfy any legal notice requirements for required policies (e.g., anti-discrimination and family and medical leave). It also could result in contractual obligations concerning benefits that the company no longer intends to provide. For example, an employer may increase its length of employment requirements for paid vacation, but then fail to update the section of its employee handbook that discusses paid vacation. Under these circumstances, an employee may be able to claim that he or she is entitled to the more generous paid vacation benefits, as set forth in the outdated handbook. Well drafted disclaimers contained in the handbook may help reduce the risks for failure to timely update a benefits policy, but they cannot totally eliminate them. Nor can such a disclaimer help an employer meet any legal notice requirements that may have changed.

 

In addition to the legal reasons for updating an employee handbook, there are several practical reasons for doing so. A well prepared and up-to-date handbook can make a favorable impression on new employees. An outdated one will have the opposite effect, and it could send the message that the company does not take its employee policies and practices seriously. Moreover, employers should view a handbook as a way to communicate with their employees about important issues. In this regard, an up-to-date handbook can resolve a lot of questions that employees might have about their employment without the need to disrupt the daily work schedule. 

 

As a final note, New Hampshire and federal law do not require employers to have handbooks. As all employers are aware, there are, however, several requirements under the law with respect to giving employees written notice of particular policies that the employers must have in place, such as an employer’s sexual harassment policy and procedure for making harassment complaints, and family and medical leave policies. A handbook is often the most convenient way to compile all such written policies and meet particular notice requirements. If an employer is going to expend the effort and resources to create a handbook, then it should ensure that the handbook remains current and continues to be a valuable resource to its employees. Otherwise, such effort and resources will be wasted.