Q. We are considering adopting a new mandatory arbitration procedure. We are concerned that some of our employees won’t agree to the change in our policy. What should we do? Should we tell employees that they will be terminated if they don’t agree? Will employees be bound by the policy if they don’t agree and we don’t take any further action?
A. Adding a new policy, even a policy as important as a mandatory arbitration procedure, is not as difficult as you may think.
You must give your employees notice of the policy change. Most employers like to get a signed policy handbook to confirm that each employee received notice. If an employee refuses to sign for a handbook or a change in policy, have another person witness that the employee has been notified of the change.
Assuming your company has never entered into a “contract” of employment, you have the right to change your policies, and employees will be bound by your changes after they have received reasonable notice.