HR Management & Compliance

The Consequences of Failing To Communicate Policy Changes



 

 



Yesterday,
we looked at the hypothetical case of an employer that changed its vacation
accrual policy and failed to notify current employees of the switch.

[For the background, click here.]

So what happens when Employee A is terminated for falsifying his timecard?

He demands to be paid for all of his unused vacation time up to the date of his termination. Because he was never put on notice of the change to the vacation pay policy, it’s unclear whether the employer would be able to prevail in asserting that its current vacation policy doesn’t permit him to receive vacation pay.

Given that uncertainty, the employer would likely have to fight its way through a lawsuit – with an employee who’s already disgruntled after having been fired (never a good time).


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If the employer had clearly communicated its policy change to all employees and received an acknowledgment from Employee A that he had received and read the new policy, there would be little question that it would prevail in the dispute.

Confusion Not Limited To Vacation Pay Policies

That confusion isn’t limited to vacation pay policies. It’s especially problematic when an employer changes its disciplinary rules but doesn’t alert employees to the change. If the employer attempts to discipline someone under the new rules or procedures, it would have a difficult time defending itself from allegations that its actions were improper or discriminatory because employees weren’t on notice of the changes.

Bottom Line

It may seem simple and self-evident, but employers frequently overlook the necessity of communicating rule changes to their employees. Failing to inform employees about policy changes can lead to confusion, inefficiency, and, unfortunately, litigation. Consequently, whenever you change your policies, it’s essential to promptly distribute the changes and require employees to acknowledge their receipt.

Your Employee Handbook Policies Are Already Written
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