For any company of any size having an employee handbook is as important as any other foundational document. Your handbook should serve as a go to for both your employees and management alike. As with any organized system, businesses must have documents in place that establish rules, expectations, benefits, and address any potential “what if” scenarios.

First, it is important to know what an employee handbook is and why having one is important for your business.

What is an Employee Handbook?

The Employee Handbook serves as a one-stop-shop compilation of your business’s integral policies, expectations, and governing principles. Unlike an ordinary procedure manual, a handbook emphasizes clarity and applicability to foster a unified and positive company culture. Handbooks also reinforce the company’s mission, values and vision. A handbook also seeks to standardize what is expected of each employee in a unified manner and to hold them accountable to the company and the company accountable to the employee. Handbooks should preferably be written along with the company’s organizational documents; however, it can be implemented at any time.

Having an employee handbook offers legal protection for both employers and employees.  Employee handbooks should always be kept up to date with current policies. Although there are numerous reasons why you should have an employee handbook, we’ve highlighted the 4 most important ones below:

1) To Outline Policies and Expectations

An employee handbook sets forth the company’s mission, expectations and rules for its employees. It also details what consequences to expect when those expectations are not met or violated. A few items to include in this section are:

• Timeliness
• Who to call when you are late or not coming in
• Timeline for requesting leave
• Employee classifications
• Expectations for professionalism
• Statements of At-Will Employment
• Equal Employment Opportunity policies
• Harassment & discrimination reporting
• Digital and social media policies
• Leave policies, including but not limited to FMLA, PTO, sick leave, and maternity/paternity leave

This ensures that employees are on the same page, reducing misunderstandings and fostering a more organized work environment. When employees know exactly what is expected of them, they are more likely to perform their duties effectively and adhere to company standards.

2) To Foster a Consistent & Fair Environment

Your handbook should deliver a clear, concise message to ensure company-wide fair treatment for all. Your handbook is a rulebook that everyone, at all levels, is bound to and no one is exempt from. It is one of the strongest tools you can use to combat claims of discrimination or unfairness in the workplace. When policies are documented and uniformly applied, employees are more likely to perceive that they are being treated fairly, resulting in enhanced employee morale, reduced conflict, and a harmonious work environment.

3) To Defend Against Employment Claims & Lawsuits and Determine the Venue and Method for Dispute Resolution

A well-written handbook goes a long way in defending against employment claims and other potential legal actions. Many employers have regrettably found themselves in hot water after neglecting important handbook provisions for items such as:

• Compensation issues
• Discrimination
• Retaliation
• Harassment
• On-the-job injuries

Many times, simply having a signed acknowledgment of the company handbook has released employers from damning legal action. It is a step you don’t want to risk skipping. Further, defining the method and venue for any employee dispute resolution helps mitigate litigation cost and streamlines the dispute resolution process.

4) To Outline Benefits and Compensation

Aside from being made aware of what your company expects of them, it is important that your employees know what they can expect from you too. The benefits and compensation sections of your handbook will likely be the “most loved” section of the book, and should detail items important to your employees such as:

• Employee classification
• Benefits available and enrollment processes
• Probation periods
• Performance review policies
• Pay schedule
• Review and/or raise schedules

These are just a few items that you should always include in your company’s employee handbook. From onboarding to exit interviews, the handbook will serve as a comprehensive and transparent reference, optimizing the day-to-day operations of the company. And remember, this isn’t just a document outlining expectations, it is a part of your business that reflects your culture and who you are as a company. Make sure that your handbook reflects your values and mission—it will define you to everyone who decides to come onboard.

Contact Us

The attorneys at the Campbell Law Group want to help you protect your business. A detailed, specifically worded handbook is imperative to your success and defending against any potential legal action. Let us help you create an employee handbook that accurately reflects and safeguards your business. Visit us on the web at www.campbelllawgroup.com or call us at (305) 882.9684 so we can help you get started today!