• July 23, 2024
• Newsletter Article

Do you think the employee handbook is just a bunch of rules? Think again! This essential document is your key to understanding company policies, setting clear expectations, and protecting you and your employer from potential legal issues. Discover why big and small businesses should have a well-crafted handbook and what key elements to include.

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From Setting Expectations to Avoiding Legal Disputes, Every Business Needs This Document

 

If you’ve ever worked for a large company, you’ve most likely received a copy of their employee handbook – that handy little booklet filled with all the answers to the questions about the company you never asked in your interview, and a bunch of other info you quickly glanced over, too. But why do so many business use these documents – surely you could have just asked your boss if you ever wanted to know this stuff, right? Wrong.

 

The purpose behind the employee handbook is to provide information to employees in a way that becomes almost indisputable should company policies be challenged. Not only does it outline the business’ workplace and employment policies, it also creates standards around employee expectations and behaviors. While an employee handbook is not required to be provided to employees by an employer under the law, they can help protect employers and employees from legal challenges and other issues that can be common in many areas of employment.

 

While most large businesses have HR departments and professionals dedicated to employer / employee relations, many small businesses do not – but that’s no reason to not have a document detailing your business’ official positions. So, what are your official positions when it comes to business policy regarding employment? Do you need to cover every little detail to protect yourself from liabilities and lawsuits? Do you need to officially state that employees are only permitted to wear pink on Wednesdays?

 

If you’re not sure how to create your employee handbook, here’s a few examples of what you can include:

 

1) General Company Information / FAQ’s

 

• About the Company
• Dress Code Policy
• Recognized Holidays / Statutory Holidays
• Introductory / Probationary Employment Periods
• Termination / Resignation Policies
• Employment Eligibility
• Company History

 

2) Compensation Information

 

• Pay Schedules
• Overtime Policies (overtime approval process, etc)
• Salary Increases / Bonuses / Performance Reviews
• Sick Leave / Maternity Leave / Non-Vacation Time-Off / Unpaid Time-Off Policies
• Information on Employee Benefits / Medical Insurance
• Company Pension Plans / Profit Sharing Programs / Employer Contribution Programs
• Legal Obligations (minimum hourly wages / maximum working hours per day / week, etc)
• Expense Policy

 

3) Anti-Discrimination Policies

 

• Anti-Discrimination / Harassment Policies
• Discrimination / Harassment Reporting Procedures
• Disability Accommodations (where applicable)
• Equal Opportunity Employment Statements

 

4) Security and Safety Policies

 

• Applicable Compliance Information (hard hats must be worn, chemical storage procedures, etc)
• Health and Safety / Security Reporting Procedures
• Applicable Laws

 

5) Technology

 

• Permitted / prohibited use of company property
• Policies for installing unapproved / outside software on company devices
• Photography / image gathering in the workplace
• Information protection

 

6) Union Information (if applicable)

 

• Official Union Information, including union name and number, contact details, etc.
• Required Union Dues

 

7) Confidentiality

 

• Non-disclosure agreements
• Non-compete agreements
• Conflict-of-interest statements

 

By creating an employee handbook, you’re not only setting company policies and rules of conduct that all employees are expected to adhere to, but you’re also clearly outlining the business’ official positions on matters that may be potentially challenged at any time. By covering the items listed above with details specific to your business’ unique circumstances, you can minimize the potential for misunderstandings and miscommunications, as well as the risk of legal challenges. Many businesses even require employees to sign an acknowledgement form confirming their understanding of the stated policies and their commitment to abide by them.

 

Looking for more tips and advice? Check out our collection of informative articles, and be sure to sign up for our newsletter.