Statement of Understanding Law and Legal Definition

Statement of understanding refers to a concluding clause in an employee handbook. By this statement an employee agrees to abide by the company policies. The statement of understanding is to be submitted with the company’s signed, original listing application. Following is an example of a statement of understanding. “I have received, read, and agree to abide by the Company Employee Handbook. I understand the policies and procedures set forth in the handbook. I also understand that the handbook is not a contract of employment, does not in any way limit the right of the Company to terminate my employment and that my employment may be terminated at any time, with or without notice, within the sole discretion of the Company management.”