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How Good Is Your Employee Handbook

Does your employee handbook give you enough authority?

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This story appears in the May 2006 issue of Entrepreneur. Subscribe »

What does your employee handbook say about progressive discipline? A recent case shows what it should say.

When PNC Bank, N.A., fired two employees for sending inappropriate e-mails during , the employees sued, claiming that the progressive discipline process outlined in the employee handbook amounted to a contract--that the employer had guaranteed certain disciplinary steps, such as warnings, before termination. But because the put sufficient disclaimers in the handbook, the court sided with the employer.

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