On January 19, 2010, the Michigan Court of Appeals issued Foote v. Dow Chemical in which it reaffirmed the importance of including disclaimer language in employee handbooks. In Dow, no employment contract was created, and hence no breach could occur, because Dow's handbook said "[n]othing in this document constitutes a contract of employment with any individual," and "I understand that I will have the right to terminate my employment with Dow at any time without notice and for any reason. I understand that Dow has the same right."
Employers should always include similar language in order to prevent accidental contract formation.
Click here for a copy of the Court's opinion.
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