Documenting Company Practices and Policies

Creating an Employee Handbook

Every company, no matter its size, should have an employee handbook that provides a summary of company practices and spells out employee rights and responsibilities. This is an important tool for a company and its employees because it provides a one-stop place for employees to reference, helps ensure employees are treated fairly, minimizes conflicts and sets up defenses in case the company is audited or an employee sues.

WORKFORCE CENTRAL FLORIDA (WCF) offers these solutions to creating an employee handbook:

If your rules are unwritten, write them down.  Gather all information on existing policies, and write them in a simple, concise, straightforward manner.  Avoid misstatements, as these can lead to legal liabilities.

Start with the company background.   In the first few pages of your handbook, provide a brief welcome and your company’s history, vision and mission to serve as a handy reference for all new employees and a reminder for existing employees.  Also, include a company organization chart.

Explain all employment classifications and definitions.  Clarify the difference between full-time, part-time, temporary and grant-funded employees, as well as independent contractors, exempt and non-exempt employees.  Avoid describing employees as “permanent,” because this could lead to legal issues if the employee is terminated.

Identify information necessary for new-hires.  Although not all handbook recipients will be new-hires, clearly explain your guidelines for employee orientation and the probationary period.

Illustrate all policies, rules and regulations.  These will vary from company to company , and although this is not an exhaustive list, here are some policies and regulations to consider: equal opportunity; sexual harassment; safety; privacy; disability accommodations; disciplinary; payroll;  hiring; personal conduct; conflict of interest; substance abuse; hours, attendance and absenteeism; performance appraisals; pay periods; breaks; overtime; outside employment; terminations; rehiring; exit interviews; employer-owned items; business gifts; electronic communications; solicitation; parking; security; smoking; dress; and, media.

Describe how an employee can raise issues of concern.  If an employee has a grievance, a safety issue, a suggestion for improvement, or a harassment or discrimination complaint, describe the method an employee would take to voice his or her concern.

List and describe all company benefits.  Topics include but are not limited to health insurance, life insurance, employee assistance program, COBRA, retirement plans, disability, worker’s compensation, tuition reimbursement, staff training, expense reimbursement, vacation, sick days, holidays, unpaid leave, sabbaticals, military leave and Family and Medical leave.

Include a disclaimer.  Specify that the handbook is not a contract of employment.  Without this disclaimer, a terminated employee may sue your company for breach of contract.

Consult with a lawyer.  Although you want to avoid a handbook written in legalese, it is important to have the final copy reviewed by an attorney who is an expert in employment law. 

Distribute to every employee.  As a new handbook is created, it is important to hand out a copy to each member of your staff, not just new employees.  Ask each employee to sign a statement that says that he or she has read it.

Update the manual.  Employment policies are constantly changing and evolving, so it is important to update the manual on a yearly basis.

A properly written employee handbook sets the parameters for the workplace.  With one in place, it will reduce employee questions, so they can focus on their top priority, getting their work done.

For further information on conducting an interview visit the following Web sites, some of which may be commercial sites that require a fee.
• www.workforce.com
• http://humanresources.about.com
• www.allbusiness.com

To learn more about how WORKFORCE CENTRAL FLORIDA can meet the growing needs of your business, visit us at workforcecentralflorida.com/employers or ask your WCF Business Development Manager for information on WCF Employer Services, such as the Lending Library and how WCF’s Employed Worker Training Program can assist you with your training needs.

Source: AllBusiness.com, Helium.com, Surepayroll.com, Score.org, SmallBusinessNotes.com, Inc.com, Employerhelp.org, Workforce.com