Contractual staff handbooks

A recent Court of Appeal decision highlights the limitations of contractual staff handbooks for employers, writes Jessica Ryan.

In Department for Transport v Sparks and others seven claimants were employed by agencies for which the Department for Transport (the DfT) was responsible. Each agency had a staff handbook containing similar absence management provisions, including trigger points of between 8 and 21 days for formal absence management (Trigger Points).

The handbooks were divided into two sections, the first of which contained the Trigger Points and was expressly stated to be contractual.

The DfT unsuccessfully negotiated with staff to reduce the Trigger Points. In the absence of staff consent, the DfT then purported to impose a new absence management policy, which included the reduced Trigger Points.   

The High Court held, and the Court of Appeal confirmed, that the absence management provisions contained in the staff handbook were "apt for incorporation" into the employment contract. In addition, as the absence management provisions were expressly stated to be contractual, the DfT was unable to treat them as non-contractual when it was not possible to agree proposed changes. 

Best practice

This case demonstrates the inflexibility of contractual staff handbooks. Where handbooks are contractually binding, expensive and time consuming consultation procedures may be necessary in order to agree policy changes. In the absence of staff consent to proposed changes, staff may resign and claim constructive dismissal where changes are imposed unilaterally.

We recommend expressly stating in staff handbooks that their contents are non-contractual. This will allow employers to make reasonable policy changes from time to time, in line with current law and best practice. In addition, employment contracts should contain an "entire agreement" clause, excluding any ancillary documentation from having contractual effect.

Jessica Ryan is a solicitor at Veale Wasbrough Vizards. She can be contacted on 0117 314 5652 or This email address is being protected from spambots. You need JavaScript enabled to view it..