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Employee Handbooks
An employee handbook is the most important communication tool between you and your employees. A well-written handbook sets forth your expectations for your employees, and describes what they can expect from your company. An employee handbook should describe your legal obligations as an employer, and you employee’s rights.
Easy Way to Create an Employee Handbook
This basic Employee Handbook Template can be customized using your company’s specific policies. Using this free template can help save a lot of time so you do not have to create a handbook from scratch.
What Should an Employee Handbook Include?
The most effective employee handbooks cover the following topics. If you use the Employee Handbook Template to create your handbook, sample text for these sections will be provided.
Links to guides discussing your legal obligations as an employer are provided below as a reference.
Non-Disclosure Agreements and Conflict of Interest Statements
While not legal requirements, having employees sign NDAs and conflict of interest statements helps to protect your trade secrets and company proprietary information.
Anti-Discrimination Policies
As an employer you must comply with the equal employment opportunity laws prohibiting discrimination and harassment, including the Americans with Disabilities Act. Your employee handbook should include a section about these laws, and how your employees are expected to comply with them.
The Discrimination and Harassment guide provides information on your legal requirements as an employer.
Compensation
Clearly explain to your employees that your company will make necessary deductions for federal and state taxes, as well as voluntary deductions for the company’s benefits programs. In addition, you should include your company’s legal obligations regarding overtime pay. You should also include information on pay schedules, performance reviews and salary increases, timekeeping, breaks, and bonus compensation.
The following resources provides information on your legal requirements as an employer:
Work Schedules
Describe your company’s policy regarding work hours and schedules, including attendance, punctuality, and reporting absences. Also include your company’s policy for flexible schedules and telecommuting.
Standards of Conduct
From dress codes to workplace violence, make sure you have thought out your expectations of how you want employees to conduct themselves in your workplace. In addition, it’s important to remind your employees of their legal obligations, especially if your business is engaged in a regulated activity (e.g., your company’s legal obligations to protect customer data or to avoid insider-trading activity).
General Employment Information
Your employee handbook should include an a overview of your business and general employment policies covering employment eligibility, job classifications, employee referrals, employee records, job postings, probationary periods, termination and resignation procedures, transfers and relocation, and union information, if applicable.
The following resources provides information on your legal requirements as an employer:
- Employment Law Resources
- Forms for Employers
- Immigration and Employee Eligibility
- Pre-Employment Background Checks
- Severance Pay and Final Paycheck
- Unions
Safety and Security
This section should describe your company’s policy for creating a safe and secure workplace, including compliance with OSHA laws that require employees to report all accidents, injuries, potential safety hazards, safety suggestions and health and safety related issues to management.
Safety policies should also include your company’s policy regarding bad weather and hazardous community conditions.
Finally, your security policy should include your commitment to creating a secure work environment, and your employee’s responsibility for abiding by all physical and information security policies, such as locking file cabinets or computers when they aren’t in use.
The Workplace Safety and Health guide provides information on your legal requirements as an employer.
Computers and Technology
Computers and communication technology are essential tools for conducting business. However employee misuse can have serious consequences for your company. Your employee handbook should include policies for appropriate computer and software use, and steps employees should take to secure electronic information, especially any personal identifiable information you collect from your customers.
The Privacy and Security guide provides information on your legal requirements as a business owner.
Media Relations
It’s a good business practice to have a single point of contact for all media inquiries, such as yourself or a public relations professional. You don't want your employees to bring unwanted attention to your company by speaking about your business in ways that could easily be misrepresented in the media. Your employee handbook should include a section that discusses how you employees should handle calls from reporters or other media inquiries.
Employee Benefits
Your company’s handbook should detail all benefit programs and eligibility requirements, including all benefits that may be required by law such as disability insurance, worker’s compensation, and COBRA.
The employee benefits section should also detail your plans for health insurance options, retirement, employee assistance, tuition reimbursement, business travel, and any other fringe benefits your business provides to attract and retain employees.
The Employee Benefits guide provides information on your legal requirements as an employer.
Leave
You company’s leave policies should be carefully documented, especially those you are required to provide by law. Family medical leave, jury duty, military leave, and time off for court cases and voting should all be documented to comply with state and local laws. In addition, you should explain your policies for vacation, holiday, bereavement, and sick leave.
More Information
The following guides provide essential resources to help employers understand their legal requirements, and can be useful when creating company policies:
