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What to Include in An Employee Handbook
When you hire someone as an employee, you have entered into a commercial relationship with that person. They need to understand the rules of the workplace and the policies to which you expect them to adhere, and it's your responsibility to give them that information.
Defining the conditions of that relationship as quickly as possible will reduce the potential for future conflicts. An employee handbook is an excellent way to communicate those conditions.
It sets down your policies where any employee can refer to them for guidance, and will help you ensure that all employees are treated fairly and equally. It can also be a tremendous help if a disgruntled employee decides to sue you or makes a formal complaint to a governmental body.
It shouldn't be so large a handbook that it overwhelms the new employee who wants to learn more about their position with your firm.
Use plain English and avoid any flowery language. Keep it to a reasonable length and make sure every new hire receives a copy as soon as they're appointed.
What to include
An employee handbook should be the central place where all the firm's policies and working conditions are detailed. Here are some of the kinds of policies and other important information you can put into your firm's employee handbook:
Define the types of employees you have. For example, some will be permanent and some will be casual. Some will be full-time and some will be part time. Make it clear what each of these terms represents and what makes one type different from another.
The terms of your firm's work week should be set out. Be sure to clarify your position on overtime and if your firm has a flexible working hours policy, detail it in the handbook. It's best to avoid referring to specific hours of using 'Monday to Friday' as the normal working days.
Spell out your firm's vacation policy including the way in which vacations are requested and approved. Ensure that you cover the need to maintain reasonable staffing levels at all times of the year and the method by which employees can request time off.
Clarify your firm's policy on sick days. How many are allowed per year and what sort of verification is needed for proof of illness.
Set out your policy on substance abuse including both legal and illegal drugs and alcohol. If your firm has a policy of random drug testing it must be outlined here so that employees are aware of it before any test might occur.
Your policy on sexual harassment policy must make it clear that the firm will not tolerate such conduct. Have a procedure for reporting instances of alleged sexual harassment, but don't try to prohibit 'office romances' as this can be an intrusion on employee's personal freedoms.
State your policy on giving notice, both how much notice a departing employee must give and how much notice (or pay in lieu of notice) an employee will receive if they are dismissed.
Your disciplinary policy should be clearly set out including what types of behavior will make an employee subject to warnings or dismissal. Have a progressive policy of warnings before dismissal, and set out the time you allow for an employee to correct improper behavior prior to being dismissed.
Your policy against discrimination of any sort should make it clear that your firm deliberately works to not discriminate against employees on any basis, and that discriminatory behavior by employees will not be tolerated. Have a procedure for reporting instances of alleged discrimination, and outline how such allegations will be handled.
Your policy on employees' use of email and Internet access has to be clearly set out, including personal use of emails and accessing inappropriate websites. If you allow employees to use the firm's email or Internet facilities for personal use, be sure to clearly define the conditions under which this access is allowed.
An outline of your firm's employee occupational health and safety policy needs to be incorporated, including the means by which accidents should be reported and procedures to be followed in an emergency.
And finally, every employee manual should have a disclaimer that states that the employee handbook is not a contract of employment. State that the handbook is provided for guidance only and does not contain the full terms of the employment contract between the employee and your firm
What to leave out of an employee handbook
As a general rule you need to pay special attention to sensitive legal topics and avoid making specific policies in the following areas:
Anything connected with parenthood or potential parenthood. Pregnant workers or male workers whose wives are pregnant must be treated the same as any other employees with the exception of any applicable parental leave. You cannot ask that an employee discloses anything related to pregnancy, and once the child is born the firm must comply with all applicable legislation.
Wages and salaries are issues of privacy for the firm, and it cannot disclose the remuneration of one employee to another without a specific business need to do so. It is not possible, however, to forbid employees discussing rates of pay among themselves or with their unions.
Things to note
All businesses with employees will benefit from having an employee handbook. It will mean that management spends less time answering questions about the rules that apply to the firm's workplace. Perhaps most important is that it will help keep you out of court, and be a great help if action is taken against you by an employee or former employee.
Give a copy of the handbook to each existing employee and to new hires when they are appointed. Have each employee sign an acknowledgment stating that they have received a copy of the handbook, and that they have read it and understood it.
Be sure you have the final draft of the handbook reviewed by a lawyer who is familiar with laws relating to employment. You need to be aware that any laws that apply to, or are mentioned in, your firm's handbook cannot be misinterpreted in it. All your stated policies must also comply with any and all legislation that applies to your firm.
Be prepared to regularly review and update your handbook. Industrial legislation is constantly changing and you handbook must change with it.
For assistance with preparing an employee handbook, please contact our consultants at 510-235 1044.
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