Employee handbook
Encyclopedia
An employee handbook, sometimes also known as an employee manual or staff handbook, is a book given to employees by an employer. Usually, the employee handbook contains information about company policies and procedures. In the UK it may also form part of an employee’s terms and conditions of employment.
The employee handbook is an excellent place to bring together employment and job-related information which employees need to know, such as holiday arrangements, company rules and disciplinary and grievance procedures. It can also provide useful source of information to new staff as part of the induction process. A written employee handbook gives clear advice to employees and creates a culture where issues are dealt with fairly and consistently.
If the employer is covered by the U.S. Family and Medical Leave Act of 1993
- generally 50 or more employees - a handbook must have information about FMLA.
Revisions to an employee handbook vary from company to company. For instance, at many larger companies, a revised handbook comes out annually or at other regular intervals.
For example, the United States Equal Employment Opportunity Commission reported that in 2005, companies paid out more than $378 million dollars in discrimination non-litigated settlements. In 2007, the EEOC received a total of 82,792 discrimination charges filed against private businesses.
Other examples of litigation against a company stemming from employee actions are the release of a customer's private information and,of course, the actions of one employee against another; sexual harassment being this type of offensive employee conduct.
An effective Employee Handbook Company Policy Manual is a very obvious, simple and inexpensive answer to the question, "How does a business protect itself against lawsuits based on employee behavior?" There are several key elements that businesses should consider before implementing an Employee Handbook.
One of the most important aspects of any Employee Handbook Company Policy Manual is that the Employee Handbook Company Policy Manual is kept current. Laws do change, and your Employee Handbook needs to be updated and kept current. Likewise, if a company has employees who are more comfortable using Spanish than English, it is a best practice to have a version in Spanish (but not necessary).
Other key characteristics of an employee handbook that help guard against employee lawsuits are that the Employee Handbook is attorney written and completed, and customized for each state; one size does not fit all! A New Mexico Employee Handbook should not be used in California. State laws may very well be different. For example, if a company wants to implement a Drug-free Workplace, an appropriate policy must be communicated to each employee in the Employee Handbook Company Policy Manual. Each state may have its own rules on how a Drug-free workplace is to be accomplished, and the information that must be communicated to employees. Florida and Texas are such states.
The employee handbook is an excellent place to bring together employment and job-related information which employees need to know, such as holiday arrangements, company rules and disciplinary and grievance procedures. It can also provide useful source of information to new staff as part of the induction process. A written employee handbook gives clear advice to employees and creates a culture where issues are dealt with fairly and consistently.
Content
While it often varies from business to business, specific areas that an employee handbook may address include:- A welcome statement, which may also briefly describe the company's history, reasons for its success and how the employee can contribute to future successes. It may also include a mission statementStrategic planningStrategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues...
, or a statement about a business' goals and objectives. - Orientation procedures. This usually involves providing a human resources manager or other designated employee completed income taxIncome taxAn income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
withholding forms, providing proof of identity and eligibility for employment (in accordance with the U.S. mmigration Reform and Control Act of 1986), proof of a completed drug test (by a designated medical center) and other required forms. - Definitions of full- and part-time employment, and benefits each classification receives. In addition, this area also describes timekeeping procedures (such as defining a "work week"). This area may also include information about daily breaks (for lunch and rest).
- Information about employee pay and benefits (such as vacation and insurance). Usually, new employees are awarded some benefits, plus additional rewards (such as enrollment in a 401K retirement account program, additional vacation and pay raises) after having worked for a company for a certain period of time. These are spelled out in this section.
- Expectations about conduct and discipline policies. These sections include conduct policies for such areas as sexual harassmentSexual harassmentSexual harassment, is intimidation, bullying or coercion of a sexual nature, or the unwelcome or inappropriate promise of rewards in exchange for sexual favors. In some contexts or circumstances, sexual harassment is illegal. It includes a range of behavior from seemingly mild transgressions and...
, alcoholAlcoholIn chemistry, an alcohol is an organic compound in which the hydroxy functional group is bound to a carbon atom. In particular, this carbon center should be saturated, having single bonds to three other atoms....
and drug use, and attendance; plus, grounds for dismissalTermination of employment-Involuntary termination:Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee's...
(i.e., getting fired) and due processDue processDue process is the legal code that the state must venerate all of the legal rights that are owed to a person under the principle. Due process balances the power of the state law of the land and thus protects individual persons from it...
. This area may also include information about filing grievances with supervisors and/or co-workers, and communicating work-related issues with supervisors and/or company managers. - Guidelines for employee performance reviews (such as how and when they are conducted).
- Policies for promotion or demotion to a certain position.
- Rules concerning mail; use of the telephone, company equipment, InternetInternetThe Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
and e-mailE-mailElectronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...
; and employee use of motor vehicles for job assignments. - Procedures on handling on-the-job accidents, such as those that result in injury.
- How an employee may voluntarily terminate his job (through retirement or resignation), and exit interviews.
- A requirement that employees keep certain business information confidential. This area usually includes information about releasing employee records and information, as well as who may retrieve and inspect the information.
If the employer is covered by the U.S. Family and Medical Leave Act of 1993
Family and Medical Leave Act of 1993
The Family and Medical Leave Act of 1993 is a United States federal law requiring covered employers to provide employees job-protected unpaid leave for qualified medical and family reasons. These reasons include personal or family illness, military service, family military leave, pregnancy,...
- generally 50 or more employees - a handbook must have information about FMLA.
"I agree" form
New employees are usually required to sign a form stating they have read and understand the information, and accept the terms of the employee handbook. Failure to do so within a timely manner may result in termination.Revisions to an employee handbook vary from company to company. For instance, at many larger companies, a revised handbook comes out annually or at other regular intervals.
Need for employee handbook
Federal and state laws and the growing number of cases of employee related litigation against management strongly suggests that a written statement of company policy is a business necessity for firms of any size.For example, the United States Equal Employment Opportunity Commission reported that in 2005, companies paid out more than $378 million dollars in discrimination non-litigated settlements. In 2007, the EEOC received a total of 82,792 discrimination charges filed against private businesses.
Other examples of litigation against a company stemming from employee actions are the release of a customer's private information and,of course, the actions of one employee against another; sexual harassment being this type of offensive employee conduct.
An effective Employee Handbook Company Policy Manual is a very obvious, simple and inexpensive answer to the question, "How does a business protect itself against lawsuits based on employee behavior?" There are several key elements that businesses should consider before implementing an Employee Handbook.
One of the most important aspects of any Employee Handbook Company Policy Manual is that the Employee Handbook Company Policy Manual is kept current. Laws do change, and your Employee Handbook needs to be updated and kept current. Likewise, if a company has employees who are more comfortable using Spanish than English, it is a best practice to have a version in Spanish (but not necessary).
Other key characteristics of an employee handbook that help guard against employee lawsuits are that the Employee Handbook is attorney written and completed, and customized for each state; one size does not fit all! A New Mexico Employee Handbook should not be used in California. State laws may very well be different. For example, if a company wants to implement a Drug-free Workplace, an appropriate policy must be communicated to each employee in the Employee Handbook Company Policy Manual. Each state may have its own rules on how a Drug-free workplace is to be accomplished, and the information that must be communicated to employees. Florida and Texas are such states.