Final answer:
The terms in employee handbooks and policy manuals that are part of an employment contract are known as implicit or incidental contract terms. They encompass expectations and rules for employees outside of the formal written contract, relating to various workplace conditions and benefits.
Step-by-step explanation:
The terms found in employee handbooks, HR policy manuals, retirement plans, and benefits handbooks are typically referred to as implicit or incidental contract terms. These terms become part of the contract between the employee and the employer, even if they are not explicitly stated in the formal employment contract. They can outline a variety of conditions and rules such as employee responsibilities, pay schedules, benefit details, safety requirements, use of company equipment and facilities, working hours and breaks, as well as guidelines for leave and absences. Additionally, these documents may describe processes for the retirement plans, insurance benefits, supplemental pay, and contributions to legally required programs like Social Security, unemployment, and workers' compensation insurance.
Understanding these implicit contract terms is crucial as they form a body of expectations and obligations that govern the day-to-day relationship between the employer and the employee. Furthermore, certain legal rights of the employee, such as pension insurance, are safeguarded by external entities like the Pension Benefit Guarantee Corporation, ensuring that employees receive at least some pension benefits if a company fails to fulfill its promised pension plans due to bankruptcy.