By: Nicole Spaur

One of the most effective ways to foster a solid working relationship between an employer and an employee is to establish frequent and honest communication. For an employer, creating and maintaining an employee handbook is a clear way to do this. A written set of company policies and procedures give both workers and management consistent guidelines for how to deal with employment issues that will naturally arise. Often distributed at the start of an employee’s tenure, handbooks have the advantage of immediately conveying that a company is a welcoming, positive place to work, that will act fairly and predictably, but will not tolerate counter-productive behavior.

Before setting out to create an employee handbook it is important to remember that, while it is a great way to articulate company policy, it is not a contract. To avoid giving any impression to the contrary, absolute language like "never" or "always" or "must" should be avoided when possible. While a company should set clear procedures, it does not want to limit its possible course of action in the future. Similarly, it is important to note that policies in a handbook that an employer has no intention or capability of enforcing can serve the opposite of the desired effect. Employees will lose confidence in management if it says one thing and does another. It is best to compose and, when necessary, modify the employee handbook according to existing company policy, rather than to lean on hollow threats or wishful thinking.

With these pitfalls in mind, the actual contents of an employee handbook can be very straightforward. Distilling and assembling the company’s policies and practices into written language may be challenging, but there are some obvious places all companies can start. In addition to an introduction or statement of company philosophy or purpose, a table of contents and statement of equal employment opportunity are also important early additions. A conspicuous disclaimer that makes clear the handbook is not a contract is essential and often important to state at the beginning.

In determining what to include in its handbook, an employer should decide what it hopes to accomplish with its employee handbook. If yours is a casual workplace, or if you want a short handbook, it may be best to keep it simple and create separate documents to communicate more complicated policies such as those relating to health benefits or retirement plans. Regardless of the tone you chose to adopt, handbooks are the perfect place to outline day-to-day policies governing timekeeping, overtime, payroll information, smoking, worker safety, grievances, breaks and lunch time, dress code, substance abuse and computer use.

The clear, written nature of a handbook also makes it ideal for outlining disciplinary action. Employers can take the opportunity to differentiate between excused and unexcused absences, articulate the need to call in before missing a day of work and warn of repercussions that may come with pattern absenteeism such as repeated sick days on Mondays and Fridays. Detailing these policies in a clear way helps prevent employees from complaining of unfair treatment and saves management from having to make on-the-spot judgment calls that could come back to haunt it.

An employee handbook can also be a good place to delineate a company’s intolerance of sexual harassment and discrimination. With policies such as these it is especially important to make sure that the handbook not only harmonize with company rules but also with applicable law. Of course, no part of an employee handbook should outline policies that contradict the law. Periodic review of a company’s handbook by legal counsel is necessary to ensure that your policies are consistent with the ever-changing business and employment laws.

As essential as maintaining the handbook, is keeping it well distributed to all employees. Having employees sign for receipt of their copy is an effective way of tracking distribution and ensuring that there is no confusion over the handbook’s contents and non-contractual nature. Annual distribution of handbooks also insures that everyone has the most up-to-date company policies freshly in mind. Marshaling the resources to create, maintain and distribute an employee handbook can seem daunting, but the rewards of keeping managers and employees on the same page and working comfortably are invaluable for any company.