So you have started a business and things are going great. You are turning a profit, the buzz about your business is fantastic, and you have been able to hire new employees. Now you suddenly realize you probably need a Human Resources director, and to develop an employee handbook. The purpose of an employee handbook is not only to communicate company policies, operating processes and procedures for your company, but also to convey the culture of the organization and maybe a bit about both its history and vision for the future. Most importantly, your employee handbook will outline your legal obligations as an employer, and your employee’s rights regarding employment with your company.
What to include in your employee handbook
The following are suggestions for the general structure of an employee handbook. You can use these topics or sections as a general outline for adding topics that are applicable to your business or industry, and discard those that do not apply to how your business operates.
- Disclaimer: A brief statement explaining that Ohio is an “employment at will” state, which means that an employer is permitted to terminate an employee for any reason or for no reason. A disclaimer explains to the employee that the following document is not an employment contract or a promise of permanent employment, and that the policies outlined in the handbook are subject to change.
- Company information: Mission and vision statements of the company and a brief discussion of the company’s history.
- Legal compliance: Equal Employment Opportunity (EEO) statements, your company’s harassment and discrimination policies and how you will respond to claims of harassment or discrimination.
- Non-Disclosure Agreements and Conflict of Interest Statements: Will your employees be working with proprietary information, trade secrets or confidential client information? If so, a non-disclosure agreement (NDA) can protect those assets.
- General employment information: This section will contain the core information about company policies, and should include detailed information about:
- Compensation
- Employee benefits
- Leave policies
- Promotions
- Work Schedule
- Tardiness policy
- Evaluation, discipline, and termination policies
- Safety & security: Employers owe a duty of care to their employees to provide a safe and secure working environment. This section of the handbook will outline the safety protocols for your buildings and company vehicles.
- Workers’ compensation policies: Explain Ohio’s workers’ compensation policies, who an injured worker should notify if they become injured on the job, and deadlines for reporting an injury in the workplace.
- Behavior & conduct: Outline the behavioral expectations of employees including issue such as:
- Dress code
- Confidentiality
- Personal calls
- Drug/alcohol policy
- Computers, technology and data security: In an era of data breaches and hacking, every employee has a role to play in maintaining the company’s information security. In this section, you might outline your company’s policies for the appropriate use of company computers, and the handling of personal identifiable information for employees, customers, and clients. You can also include information about social media policies, Internet and email conduct, and the use of their employee email address.
- Employee’s signature page: When a new employee is given a copy of the employment handbook, they should also receive a signature page which they can sign and date signifying that they have read and understand the handbook.
What are some of the benefits of having an employee handbook?
While an employee handbook is not required by law, an employee handbook is a helpful resource for both employers and employees. Make sure employees have easy access to the handbook to have access to answers about common questions that come up concerning company policies and procedures. They also provide a venue for communicating information that the law requires an employer to inform employees about such as minimum wage, meal times, breaks, what to do if they are injured on the job, and many other important issues.
An article in The Balance discusses how employee handbooks help employers to consistently apply policies and avoid the appearance of favoritism and discrimination charges. The policies published in an employee handbook can help protect employers from lawsuits, give employees a clear and uniform set of guidelines for behavioral expectations, and inform employees about how a charge will be investigated if they claim sexual harassment or discrimination.
Your employee handbook should be clear and easy to understand
You should strive to make sure that the language in your employee handbook is as clear and unambiguous as possible. Avoid using acronyms and jargon that could be easily misunderstood. Once you feel confident that a draft of your handbook is complete and accurate, having an attorney review it to make sure it actually contains required information and says what you want it to say is a great idea.
An employee handbook is a document that will evolve over time as your business grows and policies change. Make sure to create a way for the document to be updated as frequently as necessary, and that you have it reviewed by legal counsel each time a new version is distributed.
Alex Gertsburg is a managing partner at Gertsburg Licata. He may be reached at (216) 573-6000 or at [email protected].
Gertsburg Licata is a full-service, strategic growth advisory firm focusing on business transactions and litigation, M&A and executive talent solutions for start-up and middle-market enterprises. It is also the home of CoverMySix®, a unique, anti-litigation audit developed specifically for growing and middle-market companies.
This article is for informational purposes only. It is merely intended to provide a very general overview of a certain area of the law. Nothing in this article is intended to create an attorney-client relationship or provide legal advice. You should not rely on anything in this article without first consulting with an attorney licensed to practice in your jurisdiction. If you have specific questions about your matter, please contact an attorney licensed to practice in your jurisdiction.
