How Employers can Benefits from an Employee Handbook

            Companies both small and large benefit from creating and implementing an employee handbook.  Here are a few considerations:

BENEFITS OF AN EMPLOYEE HANDBOOK

            An employee handbook can help streamline a company’s organization.  When creating an employee handbook, management is forced to determine exactly how it relates to its employees.  Sometimes, this process uncovers items that management had not previously thought of or had not applied equally; resolving these issues can avoid bigger problems in the future.  Additionally, the creation process becomes an opportunity to communicate directly with employees and obtain their feedback.

            An employee handbook helps a company manage its workers and its managers.  It can provide strict guidelines to ensure consistent treatment to employees.  This benefits not only the employee, but management and owners as well; it helps prevent misunderstandings or complaints.  If there is ever a question about a specific employer policy, it can be found in the employee handbook.

            Finally, a well drafted and properly followed employee handbook provides an additional layer of protection to help prevent lawsuits.  For example, a procedure to employees as to how to complain about sexual harassment may be used in the company’s defense should an employee file a harassment lawsuit.  Additionally, stated handbook procedures – such as handling of cleanup or machinery in a warehouse, or specific provisions regarding cell phone use in vehicles - may actually prevent accidents (and subsequent litigation).  The ideal employee handbook also contains provisions stating that the employee is terminable at will.  Terminable at will provisions - although in theory do not need to be stated in writing – reminds or puts the employee on notice of the status of their employment so there is no confusion.  In drafting the handbook, the employer must be sure to exclude any language in the remainder of the handbook that could inadvertently destroy that right to fire at will.

PROVISIONS COMMONLY FOUND IN EMPLOYEE HANDBOOKS

            While there is no standard employee handbook, as every business is unique, there are many provisions commonly found in employee handbooks.  These include (but are not limited to) the following:

-         hiring procedures (what steps, if any, the employer takes before hiring)

-         firing (specific actions by an employer that would warrant immediate terminate)

-         employee hours/shifts (such as what constitutes full time versus part time)

-         vacation (how much vacation, when does it accrue, and other issues)

-         recruitment (encourage current employees to bring others into the organization).

            Of course, an employee handbook can address any issues a company chooses.  For example, some companies pay for jury duty – this issue can be covered in an employee handbook.

DISTRIBUTION OF HANDBOOK

            When distributing handbooks to its employees, ideally the employer would hold a meeting to answer any questions.  If this is not ideal (due to numerous shifts, etc.) managers can distribute to their work force.  Once implemented, the employer would then be able to distribute handbooks to new employees at time of hire.

            It is also important to have each employee – existing and new – sign an acknowledgement of receipt of the handbook.  The original signed acknowledgement should all be maintained in a secure location by the employer.

UPDATING AN EMPLOYEE HANDBOOK

            Be sure to review your employee handbook at least once a year to determine whether any changes in the law require amending the handbook, or whether new business practices require such amendment.  Even if no changes are necessary, it may remind the owners or its managers of policies otherwise forgotten or ignored.