Basic Employment Law Manual for Managers (2012 Ed) PDF

poor" and "you people are always broke" — supported an African-American employee's claim that his termination was due to racial discrimination. SUPERVISORS' PROMISES CAN CREATE CONTRACTS Supervisors' promises to employees may be interpreted by courts as enforceable employment contracts. Following ar...

poor" and "you people are always broke" — supported an African-American employee's claim that his termination was due to racial discrimination. SUPERVISORS' PROMISES CAN CREATE CONTRACTS Supervisors' promises to employees may be interpreted by courts as enforceable employment contracts. Following are examples of the types of supervisor statements that employees have alleged to create binding contracts: • Statements made by a supervisor in annual reviews that "I am glad you work here and hope we will have many more years working together" and that the supervisor "desired a long-term working relationship" could have created an employment contract. • Because an employee was told that he would be promoted within six months of starting a job and that he would receive an annual salary and a specific vacation period, the employee was entitled to have a jury decide whether those statements created an employment contract for a specified period of time. • Statements that an employee could expect job security as long as he did his job and that he could expect a promotion if he did a good job were evidence that a contract of employment was created. • A statement in an interview that potential employees did not have to worry about their jobs as long as the job gets done could be evidence of an offer of permanent employment. • An employee used his supervisor's statement that "we will retire together" to allege in court that he had a lifetime employment contract. SUPERVISORS SHOULD NOT INTERPRET BENEFIT PLANS While it is the supervisor's responsibility to know the benefits policy of the employer, it is not the supervisor's job to handle inquiries regarding that policy. Questioners should be directed first to the employee benefit handbook (or the company's intranet site), if any, and then to the benefits administrator. Supervisors should make sure that each employee has a copy of the benefits plan and keep employees informed about any changes in the plan. However, supervisors should in no way attempt to interpret the plan's provisions for employees. Any such interpretation could become an enforceable oral modification to that plan. SUPERVISORS SPEAK FOR THE COMPANY The key lesson to be learned from the above examples is that statements made by supervisors can be directly attributed to their organization. Supervisors are considered to be agents of the employer. Any statements made by a supervisor can be attributed to the employer and used as evidence to show that a company acted improperly. Thus, supervisors should be careful that their statements relate only to their job of managing people to meet organization goals. 24 Documentation WHY USE DOCUMENTATION? There are several important reasons why a manager or supervisor should document actions taken while managing people: 1. Evidence. Documentation is essential to effective management. Personnel decisions are less subject to challenge and, when challenged, are more easily defended with documentation. Whether it's a court case, unemployment hearing, or grievance arbitration, if a company's documentation is not timely, accurate and written correctly, the company is likely to lose. 2. Performance management. Documentation can provide written goals or objectives that an employee must meet to improve performance, which can prevent misunderstandings about what an employee must accomplish to improve performance. And, with respect to accurate performance appraisals, thorough documentation ensures that a manager accurately remembers the goals that have been set for an employee; whether performance standards and goals were met; if they were not met, the reasons why they were not met; and how an employee has performed during the review period. Without documentation, a manager is unable to provide an employee with specific examples of performance. The more complete and accurate the documentation, the easier it is for a manager to make and substantiate an evaluation. 3. Communication. The process of ongoing review and dialogue should be part of the manager/employee relationship. Documentation can improve feedback between a manager and an employee. 4. A record for personnel actions. When managers need to substantiate their actions to others, they use documentation. If an evaluation, promotion, pay raise, or disciplinary action is questioned, documentation will be the key to supporting that action. 5. Notice to the employee. Documentation is evidence that an employee was actually or constructively aware of expectations and policies, verifies that the employee heard and understood those expectations and policies, and is evidence that policies have been consistently applied and enforced. Documentation supports a manager's position that the manager either did or did not take some action. Generally, employees are not bound by policies and procedures that have not been brought to their attention, nor should they be punished for conduct that they did not reasonably understand was a problem. 6. Guidelines for future performance. Documentation eliminates any possible misunderstanding concerning work rules. It also allows a manager to state clearly what is expected of an employee in the future and to describe the consequences of future infractions. For example, when a manager becomes aware of an infraction, documentation can provide evidence that an employee was provided progressive discipline, was adequately warned about potential consequences, and was given a reasonable opportunity to improve. 7. Training and development. Documentation can also be used as a record of an employee's training and development, how an employee performed during training, and the employee's career goals. 25