What to Include In an Employee Handbook: Clauses Every Employee Handbook Should Include
There are a few general disclaimers that every employee handbook should have.
- Not a contract. It's important to point out that the handbook is just that -- a handbook -- and does not make any promises about continued employment. Cooper recommends the following wording: "This handbook is not a contract, express or implied, nor does it guarantee employment for any specific length of time. Although we hope our employment relationship will be long term, either the Company or you can end the relationship at any time, with or without notice, with or without reason, to the extent allowed by law."
- Handbook trumps previous policy documents. The handbook should make clear that it is the ultimate word on company policies. Cooper suggests you use the following language: "This Employee Handbook supersedes and replaces all previous policies and procedures including, but not limited to, all memoranda or written policies which may have been issued on the subjects covered in this handbook."
- The policies in the handbook may be subject to change. It's important to leave a little wiggle room because times change, new issues come up, and you may need to make revisions. This is how Cooper suggests you word this provision: "The policies included in this handbook are guidelines only and are subject to change as the Company deems appropriate and necessary. From time to time you may receive notice of new or modified policies, procedures, benefits, or programs."
- Employee acknowledgement page. In order to protect your business, and verify that your employees are aware that your company abides by these laws, it is important to include an acknowledgment page that the employee signs and returns. The acknowledgement should state that the employee understands it is their responsibility to read and follow the policies. "You want to have the acknowledgement page detachable from the handbook," Cooper says. "Once it is signed, it needs to go in the employee's personnel file."
Dig Deeper: Tools: Acknowledgement of an Employee Handbook Receipt
What to Include in an Employee Handbook
Before you write your employee handbook, you also should take the time to determine what is important to you as a business. Do you care about how your employees appear when they are at work? Do you want them to refrain from text messaging while on the job? Do you care if they blog about the company? If the issue is important to you, and you have expectations for employees' behavior, you should address it in a policy.
"Important issues can be things like the employee's ability to use cell phones at work or while driving; dealing with the appropriate way (or inappropriate way) that employees discuss the employer in chat rooms or on blogs after hours; or even the ability of the employer to address issues created by the ways the employees use their computers, e-mail, and voice mail," Cooper says. "One of the most important things to remember is that your handbook needs to reflect the way you do business. If you write a policy, be prepared to enforce the policy -- whether it is a policy setting limits or a policy supporting goals. You need to have your handbook be a true reflection of your business."
You also need to decide what tone you want your handbook to take. Many handbooks are written from the negative "shall not" perspective. Some of the most effective manuals, however, are those written from a positive perspective. "Sure employees need to know what kind of behavior will cause problems, such as excessive absences, but the policy doesn't have to be written focusing on the punishment," Cooper says.
Here is a guideline for what sections you may want to include in an employee handbook:
1. Company History. While not required, a brief section discussing the company's history and its mission can help set the tone for an employee handbook. Rowson says this section can include discussions of a company mission statement, what is its reason for being, who are its customers, what is its position in the marketplace, etc. "You might talk about the founder to get a sense of the company history or culture," Rowson says. "You might add a discussion about the leadership team so that people feel as though they know who they're ultimately working for." Cooper cautions not to make any promises in this section, such as promising to pay employees the top dollar in your field, which might be hard to sustain if the company falls on economic hard times.
2. Paid Time-Off Policy. This section spells out the company's vacation policy, such as how vacation time is earned, and how to schedule time off. It should also spell out which holidays the company observes, including which holidays the company closes for and, if the company is a restaurant or other business that stays open on holidays, how employees will be compensated for working the holiday. You may also want to address sick leave, family medical leave, and other types of leave, such as military spousal leave.
