A company without an employee handbook is like a sandwich without bread holding it together. A strong employee handbook can preempt or diminish litigation by fostering an orderly and tolerant company culture. When you begin drafting your employee handbook, keep the text simple and eliminate legalese. Avoid words such as “will,” “shall,” “only,” and “always.” When getting into the substance, consider these essential provisions.
Personal Statement. Detailing your company’s history and purpose can personalize the “machine.” Include information about the people who formed or invested in the company along with the products or services you offer.
At-Will Employment Provision. An employee handbook should state clearly and unequivocally that it is a source of information and guidance for employees, not an employment contract. You can go even further by saying that any contract for employment must be in writing and signed by a particular executive to be effective. Such a statement allows you to later point out that it was unreasonable for a former employee to rely on a conversation with a manager about how long a position might last.
Equal Employment Opportunity Policies. Include antiharassment and anti-discrimination policies. When setting out the requirements you want your employees to adhere to, look to federal and state laws for language.
Other Policies and Procedures. Every employee handbook should also include a leave policy addressing things like accrual of sick time or qualifications for leaves of absence. Also include policies related to attendance and vacation, when an employee is considered on and off duty, compensation, benefits, safety, drug testing, and evaluations. Then consider including policies particular to your business. For example, healthcare providers should address HIPAA, a company with traveling salespeople should have an expense policy, and a union employer should make clear the extent to which the handbook is even applicable. Think about what makes your workforce unique and where general rules may not suffice.
Complaint Reporting Procedure. How you decide to outline a complaint reporting procedure, particularly one that deals with sexual or other legally prohibited harassment, will ultimately depend on the size of your company. You may decide to designate a particular person to whom all reports should be made, such as “your direct supervisor,” to lay out a chain of command, or to utilize a hotline. Just remember you must provide alternatives to avoid a situation where the person you have designated turns out to be the harasser or the hotline has a leak that becomes common knowledge among your employees unbeknownst to your managers.
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