What Sections Should You Include in Your Employee Handbook? Here’s a Guide

A well-designed employee handbook is an invaluable asset for a company to have. It can provide a communication gateway between management and employees concerning employer expectations, policies and company background. In addition, a handbook provides a consistent guide for individuals to follow—helping to minimize discrimination and favoritism claims. Beyond that, the document is evidence, in the event that an employee accuses the company of wrongful termination or discrimination, that policies were clearly laid out and accessible for all to reference.

Employee Handbook Sections

A thorough employee handbook includes many sections and specific policies. Listed here are the sections applicable to most organizations and information about what each section might include. However, it is important to customize your handbook and include policies that are applicable to your business and its practices.

Introduction

1. Welcome and Purpose: This section welcomes the employee to the company and outlines the purpose of the handbook.
2. At-will Employment Statement: This piece explains that the handbook is not a contract of employment, and that the employee or employer may terminate the employment relationship at any time, for any reason, with or without cause.
3. Mission Statement: This piece explains the company’s values, goals and commitments.

Employment Policies

1. Americans with Disabilities Policy: This section explains to employees how your company complies with the Americans with Disability Act (ADA).
2. Employment Termination Policy: This section details reasons why an employee may be involuntarily terminated, and explains the policy for submitting notice of resignation.
3. Equal Employment Opportunity: This section allows you to assure prospective and current employees that discrimination is not tolerated at your company. This is also a good place to highlight your stance against harassment (race, sex, national origin, sexual orientation, etc.).
4. I-9 Immigration Reform Policy: Use this section as a disclaimer to explain to employees that you comply with the Immigration Reform and Control Act of 1986, allowing only U.S. citizens or authorized non-citizens to work for your company.

Workplace Conduct

1. Code of Ethics Policy: This piece explains the company’s rules regarding making ethical choices including prohibition of improper payments and political contributions.
2. Complaint Policy: This section explains that employees should voice their concerns immediately so that the company can do its best to remedy the situation.
3. Disciplinary Action Policy: This piece explains the company’s policy for disciplining employees, and also gives examples of situations in which employees may be disciplined.
4. Drug-free Workplace Policy: This policy explains that the company does not condone drug use, and prohibits it on the job, on company or customer premises, and in any vehicle used for company business.
5. Drug and Alcohol Testing Policy: This section outlines the company’s drug and alcohol testing policy, including disciplinary actions, the collection of specimens and testing and use of prescription medications.
6. Harassment Policy: This piece explains the company’s zero-tolerance policy on harassment, provides examples of prohibited behavior and requests that harassment be reported immediately.
7. Sexual Harassment Policy: This piece defines sexual harassment and explains that the company prohibits it. It also gives examples of what constitutes sexual harassment.
8. Standards of Conduct Policy: This policy sets the behavioral expectations for employees, and explains what behaviors should be avoided and the possible consequences for engaging in such behaviors.
9. Violence in the Workplace Policy: This section allows you to set a no-tolerance precedent for violence at your company. It outlines the type of conduct that is prohibited, including physical and verbal threats, and describes the consequences for breaking the policy.
10. Weapons in the Workplace Policy: This piece explains that firearms and other lethal weapons are prohibited on company property, and gives examples of prohibited weapons.
11. Workplace Bullying Policy: This policy details what is considered bullying and states that bullying is prohibited at the company.

Employee Benefits

1. COBRA Benefits Policy: This document explains that the company complies with COBRA and its amendments, and also provides basic information on what to do if employees become qualified for COBRA.
2. Employer-offered Insurance Policy: This policy explains who is eligible for the company’s insurance plan(s), and how much employees must pay for it.
3. Employment Taxes & Voluntary Deductions Policy: This section explains that taxes and benefits deductions will be taken automatically from paychecks, but that it is possible to waive all pretax benefits so that the only deductions would be taxes.

Time Away From Work

1. Communicable Disease Policy: This policy explains the procedure for dealing with employees with communicable diseases; employees with signs or symptoms must report them to HR, must be responsible for keeping the company informed of changes and must provide documentation of the illness. This piece also explains that individuals with communicable diseases will not be discriminated against.
2. Contagious Illness Policy: This section explains the company’s desire to maintain a healthy workplace, and that if employees have contagious illnesses, they are asked to ensure that their presence at work poses no threat to other employees.
3. Federal Family and Medical Leave Policy: This document explains that employees may use FMLA leave for qualified absences from work, and details notification and certification requirements for using said leave.
4. Funeral Leave Policy: This section explains whether leave time for a death in the family and/or for a funeral will be paid, and if a death notice must be provided in order to take the day off.
5. Jury Duty Policy: This piece explains that employers must allow their employees to take leave to serve on a jury or testify in a court case. It should also inform employees whether or not they will be paid for jury duty leave.
6. Lunch and Rest Periods Policy: This section tells employees how much time they are given for lunch and other breaks, and whether or not break time is paid.
7. Military Leave Policy: Use this policy to inform those in the armed forces of how you will handle compensation while they are fulfilling their civic duties.
8. Nursing Mothers Policy: This piece explains that the company will provide accommodation in the form of break time and a private space for nursing mothers to express breast milk while at work for the first year of a child’s life.
9. Paid Time Off Policy: This section serves to answer employee questions regarding how paid time off is accrued, who is eligible, how many days employees are offered, how to request vacation and payout policies upon termination. It also provides employees with a detailed guideline for how to take paid time off.
10. Pandemic Flu Leave Policy: In the event that one or more of your employees or a member of their family contracts a pandemic flu, this section informs them how to proceed. It is also important to outline whether or not pandemic flu leave is paid and/or counts against an employee’s vacation time.
11. Parental/School Leave Policy: This section explains that, for companies that provide separate vacation and sick time, employees can use a certain amount of sick leave to attend events or meetings at their children’s school.
12. Religious Observances Policy: Since certain religious holidays fall during the workweek that are not recognized by the company, this section instructs employees on how to request time off to observe a religious holiday. Set a precedent for whether employees will be paid for those days and what they must do to qualify to take the day off.
13. Sick Time Policy: This section outlines how (or if) employees are paid for sick days, how to record sick time and the protocol for alerting the company when ill.
14. Time Off to Vote Policy: This policy explains that if an employee would not have ample time to vote either before or after work on the day of an election, he or she is permitted to take time off of work to do so. This time is paid, and does not count against accrued time off or sick time.
15. Vacation Policy: This section serves to answer employee questions regarding how vacation pay is calculated, who is eligible, how many days employees are offered, how to request vacation and payout policies upon termination. It provides employees with detailed guidelines on how to take vacation days.

Information & Office Security

1. Emergency Action Plan: Emergency action plans are procedures established to organize employee actions during workplace emergencies. This section contains information on reporting a fire, evacuation procedures, and rescue and medical duties. To reduce chaos during an emergency, this section provides the necessary guidance to keep employees safe.
2. Facility Access & Visitors Policy: This section explains that, as a safety precaution, facility access and visitors are regulated—employees must enter through the main door during staffed hours, or use their own key to enter other doors or to enter outside of staffed hours, and visitors to the facility must be accompanied by authorized personnel at all times.
3. General Computer Usage Policy: This policy provides basic computer-use rules, with an emphasis on the company’s right to access information created, transmitted or stored on its information systems.
4. Recording Devices Prohibited Policy: This section explains that the company prohibits the use of picture phones or other visual image recorders in areas such as bathrooms or locker rooms, in which employees expect a level of privacy.

General Practices

1. Anti-discrimination Policy: This policy explains that the company does not discriminate against anyone for traits that are protected under local, state or federal law.
2. Attendance and Standard Working Hours Policy: This document explains what constitutes an excused versus an unexcused absence, when employees are expected to arrive and depart, and what absences will be paid or unpaid.
3. Background Check Policy: This section provides employees with a formal warning that background checks may be conducted before reassignments or promotions.
4. Business Expense Reimbursement Policy: This section of the handbook is important for establishing uniformity among employees with regard to travel, meal and entertainment expenses. It outlines guidelines on what expenses will be reimbursed, how to request reimbursement and where to submit requests.
5. Company Car Policy: This policy helps employees who use company-owned cars to understand the expectations for using the vehicle.
6. Company Credit Card Policy: This section helps employees with company credit cards understand the basic rules for using them.
7. Confidential Information and Company Property Policy: This policy explains the expectation that employees will protect confidential information and company property and not share them with unauthorized individuals.
8. Conflicts of Interest Policy: This section explains that employees must avoid putting themselves in positions in which their actions or interests may conflict with those of the company, and also explains the expectation that employees will report any potential conflicts of interest to management.
9. Customer Complaint Policy: This policy explains the company’s policy and process for dealing with and resolving customer complaints in a timely manner.
10. Dress Code (General): This section details how employees are expected to dress in order to represent the company in a professional manner.
11. Dress Code (Summer): This document explains the dress guidelines for the summer months, which are a bit more casual than the general dress requirements.
12. Driving While on Company Business Policy: Since the company is potentially liable if employees get into an accident on company time or while in a company-owned vehicle, this section explains the basic safe driving guidelines for driving while on company business.
13. Educational Assistance Program Policy: This section explains the company’s desire to encourage employees to further their education, and also explains what qualifies a program or course for educational reimbursement.
14. Employee Classification Policy: This policy allows you to define the classifications of employees and explain how benefits are allocated based on those classifications.
15. Employee Fraternization Policy: This document explains that romantic relationships between supervising, managing or executive employees and subordinates are prohibited, and that all employees are prohibited from engaging in inappropriate interactions in the workplace, including any behavior that negatively affects the work environment.
16. Employee Discount Policy: This section details the employee discount on goods and merchandise.
17. Employee Referral Bonus Policy: This piece explains the company’s policy of providing bonuses for employee referrals
18. Employment of Relatives Policy: This section explains that immediate family members of employees may be considered for employment with the company unless it would create a direct supervisor-subordinate relationship with a family member, or affect the work environment negatively in any way.
19. Improper Payments and Gifts Policy: This section explains that the company prohibits the solicitation, acceptance, offer or payment of bribes.
20. Injury & Illness Reporting Policy: This document explains that all injuries and illnesses must be reported immediately, regardless of whether or not they are work-related.
21. Media Relations Policy: This policy specifies who is authorized to discuss the company with the media, and what constitutes a media inquiry.
22. Online Social Networking Policy: This policy explains the expectation that social networking sites will not be used during working hours, unless it is for the company’s gain, and also reminds employees to be cautious of what they post on social networking sites outside of working hours.
23. Open Door Policy: This section allows you to encourage employees to contact their supervisors when they cannot resolve problems on their own. It is important to assure them that their voices will be heard to keep morale high.
24. Orientation Period Policy: This section explains to employees that the first 90 days of employment are considered orientation, after which a performance evaluation will take place.
25. Overtime Pay Policy: Alerts employees about the procedures concerning overtime and payment for extra hours worked.
26. Pay Periods and Check Distribution Policy: This section outlines when and how employees are to be paid. It explains that paychecks are only released to authorized individuals, and that if an individual chooses direct deposit of his or her paycheck, the payroll information will be available online.
27. Direct Deposit Policy: Explains your company’s direct deposit policy and the advantages of using direct deposit.
28. Performance Evaluation Policy: This section explains that management is responsible for providing formal and informal feedback to employees on an ongoing basis.
29. Personnel Records Policy: This document reminds employees to alert HR if they have a change of status in order to keep personnel files up to date. It also explains that personnel records are highly confidential and only accessible to authorized individuals.
30. Phone Call Policy: This section explains the protocol for using telephones during working hours, both for business and personal purposes.
31. Physical Examination Policy: This policy provides background on why physical examinations are necessary and how they relate to employees’ positions with the company.
32. Safety Policy: This section provides an overview of the general safety precautions that should be followed in the workplace, as well as the procedure for reporting accidents.
33. Severe Weather Policy: This document explains what to expect if inclement weather occurs, related to whether or not the company will be open and how to determine whether or not to go to work.
34. Smoke-free Environment Policy: This section explains that the company is a smoke-free environment and that smokers must observe the same guidelines as nonsmokers regarding the frequency and length of breaks.
35. Social Functions Policy: This policy reminds employees to behave professionally and represent the company well, even when attending social events hosted by the company.
36. Solicitations, Distributions & Use of Bulletin Boards Policy: This section explains the forums available for employees to use to communicate non-work events and personal items for sale with their co-workers.
37. Time Card Regulations Policy: This document explains that each employee must maintain his or her own time card on a regular basis, and sets rules for when employees can punch in and out.
38. Workers’ Compensation Policy: This section outlines that the company will pay for insurance to replace income lost in the event of an injury or illness while on the job.

Appendix

1. Application for Re-employment Following Military Leave: This application is to be submitted by employees wishing to return to their former position upon return from military leave.
2. Application & Request for Educational Reimbursement: This form should be completed by employees wishing to further their education and receive reimbursement from the company for the course(s) taken.
3. Certificate of Entrance into Military Service: This form should be completed by an employee when leaving his or her position to complete military service
4. Certificate of Return from Military Service: This form should be completed by an employee upon his or her return from military service.
5. Employee’s Request to Take Voting Leave: This form should be completed by employees who wish to take leave from work in order to exercise their right to vote.
6. Expense Report: This expense report should be used by employees to report business expenses for which they would like reimbursement.
7. Mileage Report Form: This form should be used for employees to report miles driven on company business using personal vehicles.
8. Report of Jury Duty Pay: This form should be used by employees to report hours or days of work missed due to jury duty.
9. Vacation Request Form: This form should be completed by employees wishing to request time off of work for vacation.
10. Application for Company-issued Credit Card: This application should be completed by employees wishing to be issued a company credit card for business expenses.
11. Receipt of Company Employee Handbook: This form should be signed by employees to signify that they have received a copy of the employee handbook and that it is their responsibility to read it.
12. Receipt of Harassment Policies: This document should be signed by employees to signify that they have received both the Harassment Policy and the Sexual Harassment Policy and understand that it is their responsibility to read them.

Additional Policies

Other policies, beyond the ones explained in this document, may be implemented or may affect your business. Include the following if they are pertinent to your company or industry:

• Adoption Assistance Policy
• Alternative Working Schedules Policy
• Diversity Policy
• Domestic Partnership Policy
• Employer-provided Mobile Devices Policy
• Flextime Policy
• Internal Transfer or Promotion Policy
• Non-FMLA Leave Policy
• Personal Leave Policy
• Salary Advance Policy
• Smoke-free Incentive Policy

© 2023 Zywave, Inc. All rights reserved.

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