Is it important to include an at-will disclaimer in an employee handbook?

An at-will disclaimer is a statement by an employer that says that the employer does not intend the handbook to be a binding contract, and that the employer is not bound to follow the terms set out in it.

Most state courts have ruled that an effective disclaimer will prevent an employee from arguing in court that statements in an employee handbook altered the at-will relationship.

Even if an employer does not have an employee handbook, a disclaimer may be an effectvie way to prevent a discharged employee from claiming that the employer made promises of job security.

What should the at-will disclaimer say? A disclaimer should state that the handbook is not to be considered a contract and clearly inform employees that they are employed at will and can be terminated at any time for any reason or for no reason at all.

Is it enough to state that the handbook is not a contract? A disclaimer that merely states that the handbook is not a contract may not be enough. The employer can still find itself in court defending a lawsuit for wrongful discharge in violation of an implied contract established by the handbook. While the employer may eventually prevail, it might be at the expense of a long, costly legal battle.

Are there drawbacks to using at-will disclaimers? Dsiclaimers, while they may make the difference between winning and losing a lawsuit, have their drawbacks. In order to be effective, they must clearly state the employer's intention that employment is at will and can be terminated at will. However, that is a harsh reality that may sound unfair and unjust to a lot of present and prospective employees. The result may be that employees are distrustful of the employer, and that could have a detrimental effect on employee morale and, in turn, on productivity.

There may also be other drawbacks. For example, a general disclaimer merely stating that the handbook is not a contract may mean that management cannot enforce it against the employee, either. Legal advice on the wording of any disclaimer is recommened.

For more information on disclaimers, see:

• ¶66,089 for a checklist on structuring at-will disclaimers.

• ¶66,090 for sample at-will statements.

• ¶66,088 for a checklist on common at-will disclaimer mistakes.