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Ask the HR Expert: Limitation of Action agreement

March 18, 2019

Provided by SBAM Approved Partner ASE

Question: Can I incorporate our Limitation of Action agreement into our Employee Handbook?

Answer: It is not advisable to place the limitation of actions term in an employee handbook. Employers should check their employee handbooks to make sure this term is not part of the handbook. Most employee handbooks include a contractual disclaimer stating policies in the handbook cannot be construed as any type of contract; which would void the contract term. Remember, the limitation of actions term has to be formally agreed to.  It is recommended that employers put this statement on their employment application or as a separate agreement that is signed going into employment.

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