Every human service non-profit Executive Director I have ever met takes pride in their organization's fair dealing with personnel. Most organizations bend over backward to make allowances for the personal shortcomings, difficult backgrounds or emotional circumstances of certain staff. There are times, however, when swift action to terminate an employee whose continued employment is not in the organization's interest, is necessary. A carelessly drafted personnel manual may make prompt action more difficult for management, or at the very least expose the non-profit corporation to a wrongful termination/breach of contract lawsuit.

The Massachusetts appellate courts have increasingly viewed personnel manuals as contracts between employer and employee. Even a disclaimer to the effect that "this personnel manual is not a contract; all employees are employees at will" may not prevent a court from construing the manual as a contract (the details of the case law is beyond the scope of this article). If the personnel manual is a contract, then the employer must scrupulously follow the manual procedures for employee discipline or termination.

Some written procedures for adverse treatment of an employee may be required by the organization's licensing agency. For example, regulations of the Massachusetts Department of Education require that any licensed private special education school have written "[C]riteria and procedures for hiring, written evaluations, suspension or dismissal of any staff person ...." While criteria and procedures are required, details are not delineated. The Executive Director of a Massachusetts non-profit corporation should consider language that maximizes the rights of management. At the very least, every personnel manual should contain strong, highlighted language advising employees that management reserves the right to terminate any employee immediately with no recourse if management in its sole discretion deems continued employment a threat to the safety or well-being of clients. Language reserving even more discretion to management may be considered.

The precise language to be used in any personnel manual must be individualized - acceptable to licensing agencies and consistent with other provisions in the manual. The use of a form or hastily drafted personnel manual may cause a non-profit organization unnecessary trouble and expense with problem employees.