The clearest way of conveying an employer's expectations of employee conduct is to incorporate those expectations in the written contract of employment.

The Employee Handbook is also a useful employment document so long as it can be shown it has been brought to the employee's attention. In addition, the Employee Handbook should clearly set out the expectations or standards of behaviour by which the employee will be measured.

An Employee Handbook may contain a history of the organization and organizational structure. The Employee Handbook should definitely set out the rules and regulations of the workplace and provide an indication of the disciplinary consequences in the event of non-compliance with those rules and regulations. In addition, the Employee Handbook should clearly set out the employer’s policy on human rights in the workplace, the employer’s harassment policy, and the employer’s health and safety policy (including a workplace violence and harassment policy, in provinces where such a policy required). Since one of the main purposes of the Employee Handbook is to communicate information, some effort should be made to create a record that shows it has been received by the employee. In this regard, a sign-off by the employee is recommended.

Employers should be careful with respect to provisions or undertakings made in the Employee Handbook in case a court concludes that the employer is bound by its promise or representation. It is now virtually beyond dispute that an Employee Handbook will constitute an implied employment contract if received and relied upon by an employee.

An employer should be aware that if it attempts to make a unilateral change to a term in an Employee Handbook, an employee who is affected by the change may be able to successfully claim that he or she has been constructively dismissed. Caution should therefore be exercised before changing any term or condition of employment, whether it is contained in an employment contract or Employee Handbook and even if it is a verbal term of the relationship.