What is an Employee Handbook?
An employee handbook, or company manual, serves as a guide for employees, outlining how to navigate the workplace. It explains the company’s mission, policies, procedures, and expectations for employees. Essentially, it’s a comprehensive document that fosters a smooth work environment by clearly defining employee rights, responsibilities, and key aspects of employment, such as workplace rules, conduct expectations, compensation and benefits, working hours, and the terms of employment termination.
Here’s what should be included in an employee handbook
Employment Basics
Employment contract type: Define full-time and part-time employees, and also interns, apprentices and other workers you employ.
Equal opportunity employment: This is a necessary statement, not only for legal purposes, but also to promote a culture of meritocracy and respect in your workplace.
Recruitment and selection process: Here, outline the usual steps in your hiring process. Also, if you often conduct pre-employment checks, define the stage hiring managers can order these checks and even how to handle them. Likewise, if you have a permanent referral program or if you issue referral rewards often, this is a good place to outline the procedure and related guidelines.
Attendance: State rules regarding attendance: for example, what employees should do when they can’t make it to work or in which cases you may excuse unreported absence.
Workplace Policies
Confidentiality and data protection: This section outlines the basic principles for safeguarding information, but should be customized to address any specific laws relevant to your organization. These laws, such as GDPR or HIPAA, must be mentioned along with the steps your company takes to comply with them. It should also detail the expectations for employees regarding the protection of sensitive information.
Harassment and violence: Respect among coworkers is essential for a positive work environment. This section will affirm the company’s commitment to preventing harassment and violence in the workplace, defining what constitutes harassment and specifying the consequences of such behavior.
Workplace safety and health: This section provides guidelines for maintaining a safe and healthy work environment. It includes actions your company takes to comply with occupational health and safety laws, as well as measures to protect employees in high-risk roles or during emergencies. Topics such as preventive actions, emergency management, a smoke-free and drug-free workplace, and mental health policies can also be included if applicable.
Code of Conduct
Dress Code: Clearly state the company’s dress code, even if there isn’t a formal one. Employees should be informed of what is acceptable or prohibited. Provide detailed descriptions—if “formal attire” is required, clarify what that means in the context of your company.
Cybersecurity and Digital Devices: Outline policies regarding internet use, company-provided cell phones, corporate emails, and social media activity (both work-related and personal). Establish clear guidelines while allowing employees reasonable freedom, as long as they adhere to security and data protection policies.
Conflict of Interest: Define what constitutes a conflict of interest, how employees should handle situations where one arises, and the consequences of knowingly violating relevant laws or company policies.
Employee Relationships and Fraternization: While many companies are flexible about friendships or dating among employees, certain rules should be set to prevent gossip or unprofessional conduct.
Employment of Relatives: Provide specific guidelines on working relationships between relatives to prevent accusations of nepotism or favoritism, ensuring fairness and transparency.
Workplace Visitors: Emphasize the importance of safety and protecting company data and property. Describe the procedures for bringing visitors onto company premises, ensuring employees remain vigilant and responsible.
Solicitation and Distribution: Address how employees should handle solicitation attempts by outsiders or colleagues distributing flyers, products, or services, and the company’s stance on such activities within the workplace.
Compensation and development
Compensation Status and Payroll: This section is particularly important for U.S. companies due to laws governing exempt and non-exempt employees. Explain the legal framework, including overtime regulations, and clarify how these rules apply within the company. Additionally, specify the schedule for salary or wage payments, such as weekly or monthly.
Performance Management: Outline how employee performance will be evaluated and what criteria will be used. This section helps employees understand the process and prepares managers for their leadership roles. Mention the objectives of performance reviews, including how managers are expected to guide and support their teams.Employee
Training and Development: Emphasize the company’s commitment to employee growth, both personally and professionally. This section can include details about available training opportunities, professional development programs, and any education budgets or resources the company offers to encourage continuous learning and skill enhancement.
Benefits and Perks
Employee Health: This section covers health-related benefits such as private health insurance, gym memberships, and wellness programs. You can also explain relevant laws like the Family and Medical Leave Act (FMLA) and the Consolidated Omnibus Budget Reconciliation Act (COBRA) to ensure employees are aware of their rights and options regarding health coverage.
Workers’ Compensation: Provide an outline of the steps employees should follow if they are injured on the job. Explain the benefits available and modify the template based on relevant workers’ compensation laws in your region.
Work from Home: Address the increasingly popular option of remote work. Detail how employees can request to work from home and the rules they must follow, such as maintaining cybersecurity at home. Additionally, outline guidelines for permanently remote workers to ensure a smooth workflow and security.
Employee Expenses: Explain the types of work-related expenses that will be covered by the company, such as travel or meals, and detail the process for claiming reimbursement.
Company Car: If the company provides cars as a benefit, inform employees of the expectations for using the car, including proper behavior and care. Clarify which expenses will be covered, such as gas and tolls.
Parking: If free parking is provided at the office, explain how employees can manage their allocated spaces. If parking spaces are limited, outline the criteria for assigning them. Company-Issued Equipment: If employees receive company-provided equipment like phones or laptops, inform them of their responsibilities in caring for the equipment. Additionally, mention what actions to take if the equipment is stolen or damaged and any repercussions or procedures for such incidents.
Working Hours, PTO and Vacation
Working Hours and Paid Time Off (PTO): Specify the standard working hours for your company, including any exceptions for specific roles or teams. Clearly outline the number of paid days off (PTO) available to employees, and explain the process for requesting PTO, including the necessary notice period and approval procedures.
Holidays: List all the company-recognized holidays and explain how employees will be compensated if they are required to work on these days, such as offering holiday pay or alternative days off.
Sick Leave: Outline the sick leave entitlements required by law, and include any additional sick leave benefits your company offers. Be sure to define short-term and long-term illness, and explain how employees can request sick leave and provide necessary documentation, such as medical certificates.
Bereavement Leave: Offer a few days of bereavement leave to employees who lose a loved one. This compassionate benefit can foster stronger relationships between the company and its employees during difficult times.
Jury Duty and Voting: Provide information on the legal obligations for granting leave for jury duty or voting. Explain the documentation employees need to submit, such as jury duty summons or proof of voting, and how the company supports these civic duties.
Parental Leave: Detail the parental leave options available, including paternity and maternity leave, as required by law. If your company offers additional leave for new parents or adoptive parents, include those details. Additionally, mention any flexible allowances for parental responsibilities, such as time off to attend school meetings or medical appointments for children.
Employee Resignation and Termination
Progressive Discipline: Outline the steps of your progressive discipline process, which typically include verbal warnings, written warnings, performance improvement plans (PIPs), suspension, and termination. Emphasize how managers are expected to handle disciplinary actions fairly and consistently, ensuring that each step provides employees with an opportunity to improve their performance or behavior before further action is taken.
Resignation: Provide clear guidelines on the resignation process, including the required notice period and any documentation employees must submit. You may also address specific issues such as tuition reimbursement, relocation expenses, or other company-sponsored benefits, clarifying what happens if an employee resigns before fulfilling their obligations. Ensure that forced resignations are prohibited.
Termination: Specify the legal requirements and internal procedures related to employee termination. Include details about severance pay, if applicable, and explain how unused vacation days and sick leave will be compensated. Clearly state the circumstances that may lead to termination, such as performance issues or misconduct, and how these will be managed.
References: Briefly mention your company’s policy on providing references for employees who have resigned or been terminated. For example, clarify whether references will be provided for employees terminated for cause, and reserve the right to refuse to provide references under certain conditions.
Disclaimer:
This policy is meant to provide general guidelines and should be used as a reference. This is not a legal document. Easy HR will not assume any legal liability that may arise from the use of this policy.