Last updated May 23, 2024
What is an Employee Handbook?
An Employee Handbook details information about the company’s mission, policies, and benefits. This essential manual is a valuable resource for both the employer and the employee. It helps clarify expectations for all parties in the organization.
Whether you are creating a manual for your new small business or looking to clarify the policies of your longstanding company, an Employee Handbook is a useful tool that helps to explain the rules, expectations, and processes of a company.
An Employee Handbook might also be called a/an:
- Employee policy manual
- Workers handbook
- Company policy manual
Are Employee Handbooks required by law?
No specific law requires a company to use an Employee Handbook. However, this document is a helpful way to keep your company’s human resources operations running smoothly, clearly, and efficiently.
Some states may require companies to include certain company forms in an Employee Handbook. Check your state’s labor laws to ensure your business is legally compliant, and talk to a lawyer if you are unsure.
No specific law requires a company to use an Employee Handbook. However, this document is a helpful way to keep your company’s human resources operations running smoothly, clearly, and efficiently.
Some states may require companies to include certain company forms in an Employee Handbook. Check your state’s labor laws to ensure your business is legally compliant, and talk to a lawyer if you are unsure.
What does an Employee Handbook contain?
Employee Handbooks usually include company information, policy information, employee expectations, payment information, and vacation and leave details.
LawDepot’s Employee Handbook template includes four key categories:
- Company details: size, background, and location of your company.
- Work terms: details around remote and on-site work, working hours, and break times.
- Compensation and benefits: pay periods, payment methods, and insurance and retirement plan details.
- Miscellaneous: details about dress code and performance reviews.
How to create an Employee Handbook
After you’ve hired a new employee, it's time to prepare for employee onboarding. A New Hire Checklist, Employee Privacy Policy, and Employee Handbook are all essential documents to use during the onboarding process.
Note: LawDepot’s Employee Handbook Template is customized to the specific rules and regulations of your state. This means that your document will include any state-specific regulations around breaks, working hours, and state-mandated medical leaves.
Create your Employee Handbook with these six simple steps:
Step 1: Provide company details
First, our questionnaire will ask you to give some basic details on your business. This includes stating your company’s name, number of employees, and location.
Additionally, you can provide information about your company’s background, which might include how your company started, your mission and vision, and what products or services you provide.
Finally, before moving on to the next step, confirm if your company already has an employee handbook in place, as it will be replaced by this new handbook.
Step 2: Explain your company’s working hours and breaks
Next, define the work terms for your business. This includes:
- Minimum and maximum hours for full-time employment
- If your employees will work on-site or remotely
- If your company has a flexible working arrangement
- Your company’s core/operating hours
- Any rules for meal and rest breaks
Step 3: Describe vacation, time-off, and medical leave details
An Employee Handbook should contain information about taking time off. Usually, this includes:
- If the company will provide employees with sick or personal leave
- If employees are required to work on holidays or if they will receive paid time off
- Which holidays your company will observe
- If employees will receive paid time off for vacation and, if so, how many weeks they will receive
- Any additional rules for vacation days
Additionally, you will be asked to specify which types of leaves your company will provide. Please note that our Employee Handbook is customized to your state. As such, our template will already include any leaves that are required by law. For example, in Alabama, employers must provide employees with military leave, jury duty or selection leave, emergency responders leave, voting leave, and crime victim leave.
Step 4: Outline payment details
This section of the Employee Handbook covers all the important payment information, including how often employees will be paid and how they will be paid.
Step 5: Outline any additional procedures, regulations, or benefits.
The last section covered in our questionnaire will be any miscellaneous employee benefits or regulations that haven’t already been covered, including:
- Dress code
- Health insurance
- Retirement plans
- Performance review details
- Any additional rules or regulations
Finally, both the employer and employee will review and sign an Acknowledgment Form. By signing this document, both parties acknowledge that they have read and understand all the policies and procedures of the company.
Benefits of an Employee Handbook
1. Clarifies expectations and prevents misunderstandings
An Employee Handbook is a vital resource because it puts all the essential details of working for a company in writing. This helps prevent misunderstandings by creating a document that employees can reference during their employment term. Having a physical document to consult as their employment progresses ensures that individuals can easily navigate company policies and expectations.
An effective Employee Handbook establishes clear standards, which helps to enhance workplace efficiency. Additionally, this document helps to foster trust and create a positive and honest working environment.
3. Offers legal protection
Although an Employee Handbook is not a legal contract, having the policies of a workplace laid out in writing offers a certain degree of legal protection. In the case of any legal proceedings, an Employee Handbook is a useful document that clearly establishes the rights and responsibilities of both parties.
Are Employee Handbooks legally binding?
No, Employee Handbooks are not legally binding contracts. However, a good Employee Handbook may protect employers and employees in the case of a lawsuit or any other employment-related legal claims.