Staff Handbooks: Do They Create Contractual Rights?

The Staff Handbook is a familiar document to HR professionals, not least because it needs regular updating to reflect changes in employment law and company policy. Frequently the Handbook will be expressly incorporated into employees' contracts. However, this does not mean that all of its provisions will have contractual force - some will clearly be aspirational rather than legally binding. The difficulty, of course, is deciding on which side of the line a particular provision falls. However, as the recent case of Keeley v Fosroc International Limited shows, where the disputed provision relates in any way to remuneration, the Courts are increasingly likely to find it creates contractual rights.