Employee Handbook
Employee Handbook
This is where you define the basic policies that explain how, when and where your employees are
expected to work. You may want to include the following information in this section:
Purpose of Handbook
Vision and Mission
At-Will Nature of Employment
This Handbook is not a Contract Statement
Reservation of Rights Statement
Statement of Non-Discrimination
Sexual and Other Unlawful Harassment Policy
Disability Accommodation Policy
Business Ethics and Conduct Expectations
Ownership of Work Materials Policy
Conflict of Interest Policy
Whistle Blower Policy
Access to Personnel Files Policy
Non-Disclosure (Confidentiality) Policy
All of these elements are important in their own way. Without a non-disclosure agreement, your
employee could breach confidentiality and have no idea that they were not supposed to discuss a
topic outside of work. Without a conflict of interest policy, you might have an employee seek a
business relationship with another organization that puts your operation at risk, yet have no recourse
as your policy was not spelled out. Therefore, it is important to include most, if not all, of the sections
above in your employee handbook.
This is another category that is important in your employee handbook. You may want to include the
following two sections:
Introductory Period: if you wish to have a “trial” period for new employees, define what that
period will look like and how long it will last.
Employment Categories: what does it mean for someone to be defined as temporary, part-time,
full-time, exempt, non-exempt, etc.?
Section Three: Recruiting and Hiring
Your employee handbook should lay out the ins and outs of your employees’ legal obligations during
their employment at your organization as well as your process for recruiting and onboarding. At a
minimum, you need to cover your policy on eligibility to work in the U.S. The following categories are
also recommended, but not required:
Timesheet Policy
Overtime Policy
Pay Periods
These items are also recommended:
Compensation Philosophy
Pay Deductions and Setoffs Policy
Direct Deposit Process
Personnel Data Changes Process
Administrative Pay Corrections Policy
Compensatory Time Off Policy
Pay Advance Policy
Section Five: General Workplace Policies
What time should I show up for work? What is the dress code? How many breaks can I take? Spell
this out. In order to ensure the best work ethic and safe work environment, you may want to include
the following sections in your employee handbook:
Working Hours
Attendance and Punctuality Expectations
Safety Protocols
Workplace Violence Prevention
Smoking in the Workplace
Drugs in the Workplace
Security Inspection Policy
Acceptance of Gifts, Gratuities, and Services Policy
Authorization to Sign Contracts & Agreements
Communication with the Press
These items can also be helpful:
You may want to include some or all of the following items in this section, depending on your specific
benefits package:
Benefits Overview
Medical/Dental/Vision Benefits
Flexible Spending Accounts
Transit/Commuting Benefits
Life Insurance/Disability Benefits
EAP
Retirement Savings Plan
Statutory Benefits (Workers Compensation, Social Security, Unemployment)
Education Assistance
Benefits Continuation
Section Seven: Leave
By creating guidelines of when it is appropriate to paid time off (PTO), vacation, or sick days, your
employees will be better able to manage their leave time. Include the following sections in your
employee handbook:
Holidays
Vacation Policy
Sick Leave Policy
FMLA/State FMLA
Military Leave Policy
Jury Duty
The following items can also be helpful:
Every organization is different as to whether they allow their employees to use their phone or
computer at work, and whether they supply their employees with these tools. Include the following
policies in this section:
Personal Property
General Use of Equipment
Internet Usage Policy
Use of Cell Phones Policy
Business Expense Reimbursement
Company Vehicles
Section Nine: Employee Performance and Workplace Conduct
How do you expect your employees to behave while at work? What qualifies as misconduct? What
kind of performance is considered grounds for termination? How will employee performance be
evaluated? Include these policies:
Employment Separation
Return of Property
Non-Compete and Conflict of Interest Policy
You may also consider including an item on references for current and former employees.
Employers often worry that their employee handbooks will be used against them in litigation. In
particular, you could be concerned that employees will claim that your policies are contracts that
must be followed exactly. However, the simple act of putting your policies in writing should not create
a binding contract, if the policies are written as guidelines that explain "generally" or "typically" what
your requirements are and how employees "normally" will be treated.
Label your “introductory period” policy carefully. Do not use the traditional phrase "probationary
period" with its union security clause connotations. Instead, use you might want to use the term,
“introductory period”, meaning that the new employee is being introduced to the organization and
that both the employee and the company have the opportunity to evaluate fit.
Include a clear at-will statement in the policy. An example of an effective statement is: "Your
employment with the Company is considered to be at-will, and the employment relationship may be
terminated at any time by either party." Make sure other policies also include appropriate at-will
disclaimers. It is not enough to include the at-will statement just in the introductory period policy. You
also should have a separate at-will policy and discuss the issue in other policies, such as those
addressing hiring, termination, discipline, performance evaluation, and complaint resolution.
No matter the size of your organization, a well-written, up-to-date, legally compliant employee
handbook is a best practice that will benefit you and your employees.