While most firms have employee handbooks, few realize the responsibilities and even dangers a handbook creates.
A handbook ensures that both firm and employees understand the full picture of the employment, says Beth De Lima, SPHR-CA, of HRM Consulting, a human resource management consulting company in San Diego, CA. It outlines what the firm expects from employees in terms of behavior and what employees can expect from the firm in terms of salary, benefits, and so on.
But it’s easy for a handbook to say too much or too little. Here De Lima lists the basic provisions to cover, but also the cautions to take when setting out the details.
Yes, I have read this
The first necessary item is a signed acknowledgement that the staffer has received the book and has a responsibility to read, understand, and follow it. The acknowledgement should also list the person to call with questions.
And that needs to be repeated every time the handbook is updated.
Most offices stop short with that, De Lima says. They require their employees to review the handbook but don’t require the same of management.
In her own company’s work “we see many supervisors who haven’t read it in 10 years or have never read it.” And violations occur because of that. “They aren’t deliberately ignoring the policies. They just don’t pay attention to them.”
A handbook creates two-way responsibility, she says, with either side able to hold the other accountable for whatever is in it. Suppose the handbook states that the firm does performance appraisals every year when in fact it hasn’t done them for the past three years. If someone gets fired, there’s room to argue that the firing was wrongful because policy wasn’t followed.
At-will employment
Another necessity is a statement outlining that the handbook is not a contract of employment and that anyone can be terminated with or without cause.
But the caution here is to make sure the rest of the handbook doesn’t negate the at-will status.
That can happen if the book also lays out a step-by-step progressive discipline procedure. Someone who is fired for cause on the spot could claim that the firm was required to go through that process.
This is how I get paid
There also needs to be a section on wages and here De Lima’s advice is to cover every possible aspect of “how do I get paid?” and “when do I get paid?”
Explain the payment schedule, whether weekly, biweekly, or monthly.
Explain the firm’s policy on expense accounts.
Also lay out the overtime requirements. Especially important is a provision that overtime has to be approved and that anyone who works overtime without approval “is subject to disciplinary action up to, and including, termination.”
Approved or not, says De Lima, overtime has to be paid, “so the discipline provision is the only way to stop people from working unauthorized hours and demanding pay.”
These are my benefits
Next is the `here’s-what-I get section.’
This section should list all insurance coverage including disability and Worker’s Compensation.
It should also list all time-off such as vacation, sick leave, personal paid time, and holidays.
And it should list retirement benefits.
Then to make things absolutely clear, go further and list perks the office provides. If there’s free parking or a gym membership, put that in.
Also explain when people qualify for each benefit. Perhaps vacation is only allowed after six months of employment or employees have to be full time to qualify for a particular benefit. Make it clear so no one can claim to have been promised something the firm doesn’t provide.
This is for my safety
Outline the health and safety measures the office has in place. For instance, what are the procedures for responding to violence, whether from an employee or an outsider?
And what about building security? Are employees who work late provided with an escort to their car?
Include too all the small safety precautions the firm takes. For example, does the firm have a policy on the use of fragrances and if so, what is it? Also outline what ergonomic policies are in place and who to contact about having a workspace evaluated.
These laws will protect me
Employment laws need to be covered including EEOC requirements, the ADA, family and medical leave, uniformed services provisions, and so on. It is also essential you set out the complaint procedure to follow when someone experiences, witnesses, or has knowledge of a violation.
Here’s how I’ll be rated
State when reviews are held and how performance is evaluated.
Here’s how we all have to behave
Another topic is employee conduct.
Start with attendance and tardiness requirements and go on to detail limits on the use of the Internet, computers, copiers, and other equipment.
Cover every requirement the firm sets out, from cell phone use in the office to dress code and grooming.
Many requirements will be particular to the firm. The most obvious is a client confidentiality policy. But there may also be policies covering such things as the taking of photos or contact with the media.
Expect this section to change and expand over time because in most cases an office doesn’t have a requirement until it encounters a problem.
These are my working hours
Outline the working hours including meals and breaks.
Along with that, explain how the firm keeps track of employee hours and what employees are required to do, such as fill out time cards or use a time clock.
This is how I quit
Outline the procedures for resignations including the amount of notice the firm requires and whether the resignation must be provided in writing. Also detail what benefits employees are entitled to when they quit or are terminated.
And along with that, explain the policy on giving job references.
A right to change the policy
Finally, De Lima says, never consider the handbook as being written in stone. Include a statement that the firm has the right to change policies at any time.
Related reading: | ||
Avoid the lawsuit lurking in your employee handbook |
What every employee handbook absolutely, positively, must cover |
A self evaluation plus a quiz on the handbook |