Why an employee handbook?

• Handbooks can be valuable communication and employee relations tools.
• They help maintain consistency among supervisors to avoid misunderstandings about workplace policies.
• Handbooks help orient new employees and let them know what is expected of them.
• Written statements of policies can help reduce the need for employees to seek out union representation in the workplace.
• Clear work rules help support your disciplinary procedures and avoid discrimination charges.

DO’s

• Handbooks should be written in a clear, organized and non-technical style to avoid excessive questions and errors in interpretation.
• Every employee should receive a copy of the company’s handbook.
• When introducing a new handbook or major revisions, the company should have a representative go over the material personally with every employee.
• Have the employee sign an acknowledgement of receipt of the handbook which includes the statements that the handbook does not constitute a contract of employment; is not all inclusive and is only a set of guidelines; and that changes can be made to the handbook and policies at any time.
• Keep your handbook up to date and notify employees in writing of any changes in policies and procedures.

DONT’S

• Use terminology that could imply that the handbook is an employment contract, such as “permanent” empoyees — use the term “regular”.
• Make statements such as “You will have a job as long as you perform your duties”. This implies a long-term or indefinite commitment.
• Use “cause” of “Just cause” as it relates to termination. You may have to prove that termination is not overly severe and the violation merits termination.
• Use excessive “legalese” which may upset or confuse employees. The handbook should be written in a positive manner.

The above recommendations are not all-inclusive of what needs to be considered in preparing your employee handbook. Some employers have lost discrimination cases because of poorly written handbooks. On the other hand, if you have been trying to avoid having a written handbook and are relying on unwritten policies, you might have a problem proving what your policies are in the case of a discrimination case.

We at EffortlessHR believe that an effective employee handbook is a foundation upon which you can build your organization. To assist you in this effort, check out our new venture, Effortless Employee Handbook Builder

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The first question can be pluses and minuses to a business owner – employment lawyers, consultants, and managers of organizations all disagree on the value of employee manuals. This disagreement comes from whether or not a manual is considered by the courts to be a contract for employment. Also, if not written correctly, the manual may inadvertently guarantee job security.

However, on the plus side, a handbook or manual can help increase morale. This is because when your employment practices are in writing, your employees feel they are being handled consistently and fairly. A well-written manual can save time because the employee know they can get the information they need about benefits, policy, procedures, etc. without interrupting their manager. In addition, handbooks and manuals provide the company with documentation that they are in compliance with important laws and regulations, that if not actively placed in the manual might be ignored (due to not knowing about it) or might prove to be unenforceable as you had not informed your employees about it.

So, the essentials of what goes in your manual would be:

• Compliance with all the applicable laws and regulations – both federal and state and in some instances local.
• Although it may be helpful to review other handbooks for ideas and layout, you need to customize the manual to your company and include the policies that are part of your organization. Someone Else’s handbook may not be appropriate to your organization.
• Only include policies in your handbook that you can support and follow. It will do you more harm if you put a policy in place and don’t follow it.
• It is okay to have disclaimers. Content for disclaims vary due to state regulations, so check those state requirements before adding a disclaimer.
• Make sure the disclaimer you use is clear and placed to be noticed.
• Where appropriate, leave room for your managers and supervisors to handle violations of policies. Be able to allow them flexibility based on their judgment and experience.
• Always require a signed acknowledgement that the employee has reviewed and received the manual. This signed document should be placed in their personnel file with a copy to the employee for their records.
• Date any revisions and have the employee place them in their manual with a new acknowledgement signed and filed.

Remember, an out of date handbook is not only useless but may also create a risk to your company. Stay current on laws and regulations and keep your manual up to date.

An example of a not-so-great but funny employee handbook can be found over at the Punk Rock HR Blog

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