In this article, we will examine each of these points, and give special attention to disclaimers in employee handbooks and the effect of sexual harassment policies in creating a contractual relation between the employer and employee.
WAS A CONTRACT FORMED? In the employment context, the formation issue tends to focus on written, distributed employee handbooks or other policy statements. When there is an individual, written, separately bargained contract, the formation issue is easy. But what of handbooks and other policy statements? What of policies and practices? When are they considered contracts? (More on that later, but of course it varies by state.) What of oral assurances or other oral promises? That kind of contractual issue emphasizes problems of proof and also raises statute of frauds issues.