When constructing an employee handbook employers will generally include a statement allowing for the change or modification of the handbook at their discretion. Including a disclaimer of this nature is important simply because there are times and applications where current laws and regulations change. Workplace related laws must be updated in a timely fashion and amending handbooks to reflect those changes is an absolute necessity. Additionally, employers might modify their policies to adjust to growth, expansion, acquisitions, or potential downsizing. This past year Cox Automotive modified our employee handbook based on changes implemented to our benefits program. As the company investigated ways to attract desired employees and to ensure …show more content…
While it might not appear fair at the time of occurrence, the longevity and profitability of an organization impact all stakeholders and therefore formulating adjustments that match market demands can be crucial and essential. As previously discussed, employee handbooks are not contracts of employment. They are documents used to share policies and procedures that support the overall culture of the company. Often, handbook guidelines are followed with precision and work in conjunction with missions, goals, and visions of the company. However, they can be modified by an employer and it is a fair practice when utilized to meet organizational needs. When a company is implementing changes to their employee handbook, communicating those changes effectively and tracking those communications is a key component. Currently at Cox Automotive policy changes are tracked electronically, through a process of viewing and acknowledging notifications all managers are required to ensure their team members have completed these steps and have access to all relevant information and …show more content…
Employee handbooks, compensation plans, and even employment contracts often refer to an employer’s sole discretion to make changes as they deem necessary. The limit to an employer’s sole discretion is reached if they stretch beyond what is legal or if their practices become grossly unfair (). A company cannot violate employment laws, including regulations related to payment of wages earned, taxes, fraud, harassment or discriminations. Additionally, employers cannot change or alter an undisputable, incontrovertible fact and they cannot be irrational or illogical. As a general rule, employers are obligated to act in good faith and without aim or intent to deceive or commit fraud. Although most company workers do not possess employment contracts, they are informed they will receive wages and benefits based on specific goals or guidelines and although this might not be written it is absolutely enforceable. My employment compensation includes commissions and bonuses, and although my company can alter these compensations plans based on their own discretion, they cannot use a confusing phrase or sentence to engage in deceitful practices. In conjunction with this idea, companies must operate in a consistent manner and cannot be incompatible or contradictory with