CREATING AN EMPLOYEE HANDBOOK

When developing your handbook, do not to include unnecessarily specific information; shorter is always better. Here are the most essential policies to cover:

Company overview. Introduce your company with a few paragraphs about its history, growth, goals, ethics and management philosophy.

Equal opportunity statement. Clearly, state that age, sex, race, national origin, veteran status, disability has no part in your decisions about hiring, assignment, promotion, pay or benefits. Terminate any manager or supervisor who has an “English-only” work rule or encourages employees to join a union.

“At-will” employment. State clearly that you adhere to the traditional, common-law theory of “at-will” employment; that the employment relationship can be ended by either party (the employer OR the employee) without notice or reason or notice. Mention that the handbook does not create a contract of employment and that ONLY the top-most company officer has authority to make any agreement contrary to this policy. Mention that policies can be changed at any time. Outline a 3-step, “open-door” grievance procedure; and that the CEO personally carries out all terminations.

Introductory (never say “probationary”) period -- the first 90 to 180 days of employment. After completion of this period, the employee will be eligible to participate in (make a list) company benefits (over and above those required by law).

Benefits. Ask your insurance company for brochures that explain your insurance policies (health insurance, parental or maternity leave) in detail. In addition, your handbook must define eligibility (who and when) who for insurance, and what portion of costs are paid by the company. List additional insurance (dental or disability) that employees can buy through the company. Explain policies on vacation and all types of leave, including sick, military, funeral, personal, family, medical and jury duty. List paid holidays. Include a general summary outlining your benefits packages.

Retirement/Pension or profit-sharing plans. Discuss which and when employees become eligible, whether an employee contribution is permitted or required, and when employees become “vested“.

Work hours. Define the start and end of the work week (midnight Tuesday/Wednesday/Thursday -- NEVER during the weekend). State that immediate supervisors will set actual schedules including time for lunch and breaks.

Pay and performance issues. Pay issues are sensitive, so do not mention specific numbers. Include A general statement about when pay is distributed, how promotions and wage increases are earned, classification of employees (regular part-time, regular full-time, temporary part-time, temporary full-time, casual or “on-call“) and your prohibition on pay advances or loans between co-workers (under ANY CIRCUMSTANCES), leave with and without pay, overtime rules (how it is approved, by whom; when and how it is paid) and other basics are sufficient. (Blanket statements “…we will not pay unless overtime had advance written approval…” give you no legal over-- if the time was worked, you will pay the employee and a government penalty!)  P.S. Tinkering with employee time records can mean time in a federal jail.

Performance reviews. Tell employees exactly who (title) will perform the written evaluations of their performance and be specific about what areas they will be evaluated on. Say how often it will be done (daily/weekly in the first 30-90 days of employment and on the anniversary of employment or during a set annual or semi-annual period). Never do everyone once a year. Do not require employees sign it...just give them a copy of the review.

Standards of conduct. Make certain that employees understand what you expect of them. Briefly list required behavior (such as dress and timeliness). State emphatically that you strictly forbid all forms of discrimination, including racial and sexual harassment, use or possession of weapons, alcohol, drugs in the workplace. Explain when substance screening (pre-employment, post-accident, post-hospitalization, reasonable suspicion and “no-notice“ random) screening) is done.

Workplace access. Non-employees (politicians, charities, religious or union reps, are never allowed in work areas during work-time. Explain your “no solicitation/no distribution” rule and enforce it consistently. Violations expose you to serious legal liability.

Termination. Briefly list (7-8 max) of behavior that will result in disciplinary action, suspension, termination. Explain 3 verbal warnings, 3 written warnings leading to suspension and eventually to termination. Restate that the CEO personally carried out all terminations.

General information. This section is for new hires who may not know how to get around, when they'll eat lunch, or where they should park. Consider including these items: area maps, a parking pass, an organizational chart, phone lists, a statement regarding the confidential nature of your business, and policies covering gifts, use of company vehicles, traffic tickets and personal telephone calls.

Forms. Blank forms and acknowledgements will protect your liability and encourage employees to read the handbook by requiring them sign a receipt for it. Include two copies of the receipt; one stays in the handbook after being signed, the other goes in the your “Acknowledgement” file (not the file you keep on the employee). The file on an employee must never include a mix of employment records and health/medical information. Your employee records are company property, not open to review or inspection to anyone (include the subject employee) without a legal right to access. NEVER place anything in your files without giving a copy (marked: Employee’s Copy”) directly to the employee.

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