Do written policies create a contract?
A. The simple act of putting your policies in writing should not create a binding contract if the policies are written as guidelines that explain generally or typically what your requirements are and how employees normally will be treated. However, you can create a contract by using language that conveys rigid rules that must be followed exactly as written in all circumstances. Therefore, you should build flexibility into your wording and steer clear of any promises that could be interpreted as a contract. Your policies should not, for example: 1. State that the organization will “only” or “always” do something or “must” act in a particular way; 2. Describe employees as “permanent;” 3. State that employees will be terminated only for “cause;” 4. Make promises of job security; or 5. Use all-inclusive lists, such as in disciplinary procedures or work rules. Instead, you should use terms such as “generally,” “typically,” “usually,” and “may” so that managers have flexibility in interpreti