11 Things Your Employee Handbook Must Include
TABLE OF CONTENTS
Any employer that knows their stuff will have an employee handbook. The specifics will differ by company, but virtually all handbooks follow a set format and will include most, if not all of the items discussed in this article.
The purpose of an employee handbook is to lay down guidelines for the relationship between employer and employee. If will include written information on the organization’s background, as well as all the policies and procedures applicable to an employee’s work. It also serves as a guide to the management’s expectations of how employees should behave at work. Further, the employee handbook is also a way to defend the employer against charges of unfairness or prejudice.
One thing to note is that the employee handbook is not part of the employment contract. The employment contract contains critical terms and conditions that both parties must abide by, such as salary, job scope etc which if breached will need to termination. On the other hand, the employee handbook outlines expectations and operational policies, like how to apply for leave and such.
Above all, your company’s employee handbook sets the foundation for consistency and transparency in the working relationship. With this, here are the 11 things every HR practitioner must include in their employee handbook.
Welcome and Company Overview
It’s not necessary, but you should begin the handbook with a warm welcome and a brief introduction to your company's mission, values, and history. This section should give employees a sense of belonging and purpose, while outlining the company’s overall reason for being.
Employment Policies
Clearly articulate your organization's employment policies. State the guidelines for hiring, promotions, transfers, and termination procedures. Highlight important aspects such as probationary periods, notice periods, and any requirements for employment eligibility.
These employment policies form the core of each party’s obligations in the working relationship. They also outline how the employer should behave in certain situations. Important policies to include in the handbook are:
- Equal opportunities policy
- Data protection policy
- Social media policy
- Disciplinary policy and procedure
- Whistleblowing policy
Compensation and Benefits
Detail your company's compensation structure, including salary, allowances, bonuses, commissions, and performance reviews. Describe employee benefits such as healthcare, retirement plans, vacation and sick leave policies, and any additional perks or incentives. Statutory deductions should also be included.
Code of Conduct
Establish a code of conduct that outlines expected employee behaviour, professionalism, and ethical standards. Cover areas such as dress code, punctuality, attendance, use of company resources, confidentiality, and conflicts of interest.
Leave Policies
Outline policies regarding the various types of leave, including annual leave, compassionate leave, and others. Clearly explain how employees should request time off, the procedures for approval, and any limitations or restrictions that apply.
Workplace Policies
Specify rules and guidelines related to workplace safety, security, and emergency procedures. Include policies on acceptable use of technology and company-provided equipment, social media usage, and internet/email privacy. If applicable, address any specific industry-related regulations or compliance requirements.
Performance Expectations
Define your company's performance expectations, including productivity standards, quality of work, and any key performance indicators (KPIs) relevant to different roles. Provide guidance on performance evaluations, goal-setting, and development opportunities.
Family Policies
Address policies related to parental leave, family and medical leave, and any other legally mandated or company-offered leave options. Ensure compliance with all laws and regulations such as minimum leave allowances.
Employee Relations
Clearly communicate your organization's stance on employee relations, conflict resolution, and grievance procedures. Encourage open communication and provide a mechanism for employees to voice concerns or provide feedback. Emphasize the company's commitment to maintaining a respectful and inclusive workplace.
This is even more important if your organization has to deal with industrial unions. Normally, this section (and others) is jointly drafted by the employer and the union. Unionized grievance procedures vary according to industry, but you need to make sure that the employee handbook reflects this as accurately as possible.
Disciplinary Actions and Termination
Detail the consequences of policy violations and the disciplinary process that will be followed. Clearly outline the steps involved in issuing warnings, suspension, or termination. You’ll also need to define actions that constitute gross misconduct, and can lead to immediate dismissal. At all times, ensure compliance with employment laws and regulations to avoid legal complications.
Normally, the steps towards taking any disciplinary actions include:
- Verbal warnings by the employee’s superior
- Issuing warning letters
- Drafting a performance improvement plan
- Holding a domestic inquiry
Acknowledgment and Signature
Include a section where employees can acknowledge that they have received, read, and understood the contents of the employee handbook. You need to be careful about the wording and make it clear that the employee handbook is not a contract. But, this acknowledgment can serve as evidence of the employee's agreement to adhere to the policies and procedures outlined within should any dispute occur over issues like anti-discrimination or the code of ethics.
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Any employer that knows their stuff will have an employee handbook. The specifics will differ by company, but virtually all handbooks follow a set format and will include most, if not all of the items discussed in this article.
The purpose of an employee handbook is to lay down guidelines for the relationship between employer and employee. If will include written information on the organization’s background, as well as all the policies and procedures applicable to an employee’s work. It also serves as a guide to the management’s expectations of how employees should behave at work. Further, the employee handbook is also a way to defend the employer against charges of unfairness or prejudice.
One thing to note is that the employee handbook is not part of the employment contract. The employment contract contains critical terms and conditions that both parties must abide by, such as salary, job scope etc which if breached will need to termination. On the other hand, the employee handbook outlines expectations and operational policies, like how to apply for leave and such.
Above all, your company’s employee handbook sets the foundation for consistency and transparency in the working relationship. With this, here are the 11 things every HR practitioner must include in their employee handbook.
Welcome and Company Overview
It’s not necessary, but you should begin the handbook with a warm welcome and a brief introduction to your company’s mission, values, and history. This section should give employees a sense of belonging and purpose, while outlining the company’s overall reason for being.
Employment Policies
Clearly articulate your organization’s employment policies. State the guidelines for hiring, promotions, transfers, and termination procedures. Highlight important aspects such as probationary periods, notice periods, and any requirements for employment eligibility.
These employment policies form the core of each party’s obligations in the working relationship. They also outline how the employer should behave in certain situations. Important policies to include in the handbook are:
- Equal opportunities policy
- Data protection policy
- Social media policy
- Disciplinary policy and procedure
- Whistleblowing policy
Compensation and Benefits
Detail your company’s compensation structure, including salary, allowances, bonuses, commissions, and performance reviews. Describe employee benefits such as healthcare, retirement plans, vacation and sick leave policies, and any additional perks or incentives. Statutory deductions should also be included.
Code of Conduct
Establish a code of conduct that outlines expected employee behaviour, professionalism, and ethical standards. Cover areas such as dress code, punctuality, attendance, use of company resources, confidentiality, and conflicts of interest.
Time Off Policies
Outline policies regarding the various types of leave, including annual leave, compassionate leave, and others. Clearly explain how employees should request time off, the procedures for approval, and any limitations or restrictions that apply.
Workplace Policies
Specify rules and guidelines related to workplace safety, security, and emergency procedures. Include policies on acceptable use of technology and company-provided equipment, social media usage, and internet/email privacy. If applicable, address any specific industry-related regulations or compliance requirements.
Performance Expectations
Define your company’s performance expectations, including productivity standards, quality of work, and any key performance indicators (KPIs) relevant to different roles. Provide guidance on performance evaluations, goal-setting, and development opportunities.
Leave of Absence and Family Policies
Address policies related to parental leave, family and medical leave, and any other legally mandated or company-offered leave options. Ensure compliance with all laws and regulations such as minimum leave allowances.
Employee Relations
Clearly communicate your organization’s stance on employee relations, conflict resolution, and grievance procedures. Encourage open communication and provide a mechanism for employees to voice concerns or provide feedback. Emphasize the company’s commitment to maintaining a respectful and inclusive workplace.
This is even more important if your organization has to deal with industrial unions. Normally, this section (and others) is jointly drafted by the employer and the union. Unionized grievance procedures vary according to industry, but you need to make sure that the employee handbook reflects this as accurately as possible.
Disciplinary Actions and Termination
Detail the consequences of policy violations and the disciplinary process that will be followed. Clearly outline the steps involved in issuing warnings, suspension, or termination. You’ll also need to define actions that constitute gross misconduct, and can lead to immediate dismissal. At all times, ensure compliance with employment laws and regulations to avoid legal complications.
Normally, the steps towards taking any disciplinary actions include:
- Verbal warnings by the employee’s superior
- Issuing warning letters
- Drafting a performance improvement plan
- Holding a domestic inquiry
Acknowledgment and Signature
Include a section where employees can acknowledge that they have received, read, and understood the contents of the employee handbook. You need to be careful about the wording and make it clear that the employee handbook is not a contract. But, this acknowledgment can serve as evidence of the employee’s agreement to adhere to the policies and procedures outlined within should any dispute occur over issues like anti-discrimination or the code of ethics.
