An employee handbook is a manual that contains an employer's work rules and policies. It can also be used to communicate other information to employees, such as the business's history, its goals, and its commitment to customer service.
Why have an employee handbook? If you have only a handful of employees, the time it would take to assemble a handbook probably won't be worth the effort. You may still want to have some documents to communicate general work policies to employees. In many cases, this may nothing more than a list of work hours, paid holidays, and designated paydays.
However, if you have a lot of employees, you might consider creating a simple handbook. It can be used to communicate company policies regarding:
Warning |
While handbooks can be a positive, helpful resource for your employees and for you, there is a real danger of unintentionally creating an employment contract. If a court finds that the handbook promises continued employment, or that certain procedures will be followed, the business may find that employees have rights that the employer had not intended to create. For example, an employer whose handbook states that an employee will be terminated for just cause may find its ability to terminate an employee limited unless it can prove that just cause exists. Similarly, if the handbook outlines the procedure to be followed when an employee is terminated, failure to follow the procedure can lead to a successful lawsuit by an ex-employee if the procedure isn't followed. These potential risks make it imperative to:
If you choose to create an employee handbook, be sure your attorney reviews it before you give it to employees. |
Other uses for employee handbooks. If you're undecided about whether to invest the time in creating a handbook, consider some of the other uses for a handbook in addition to communicating work rules and policies to employees. Provided the appropriate content is there, the handbook can serve a number of purposes:
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