To avoid having the employee handbook create an implied contract, you must use a clear and prominent disclaimer:
All that need be done is the inclusion in a very prominent position of an appropriate statement that there is no promise of any kind by the employer contained in the manual; that regardless of what the manual says or provides, the employer promises nothing and remains free to change wages and all other working conditions without having to consult anyone and without anyone’s agreement; and that the employer continues to have the absolute power to fire anyone with or without good cause.
Woolley v. Hoffmann-LaRoche, Inc.¸99 N.J. 284, 309, modified, 101 N.J.
Existence of Employment Contract Precludes Treating Employee Handbook as a Contract
An employee who has an employment contract would not be able to assert a Woolley claim, because it would not be reasonable for them to rely on the employee handbook as an employment contract, when they have an actual employment contract. Ware v. Prudential Ins. Co., 220 N.J. Super. 135, 143 (App.Div. 1987), certif. denied, 113 N.J. 335 (1988).
This blog post was written and posted by Tayeb Hyderally