Human Resources 101

Why have an employee handbook?

• Establishes the conditions of employment present at the time of hire for example: hours of work, vacation entitlement, sick day payment, retirement age, etc.
• Acts a reference tool for information about the employee benefit plan, payroll, overtime, pay increases etc.
• Use as part of the orientation process to familiarize employee with the employer and the work location.
• Communication tool to pass along organizational history, culture, and chain of command.
• Familiarization with the organization–who does what, identify appropriate avenues for information.
• Reduces litigation because it clearly outlines what is expected from the employee – i.e. code of conduct, dress, language, smoking.
• Establishes rules and regulations (however, it should include a disclaimer that discipline may be issued for behavior not included in the list — list is not all encompassing)

Essentials of a Good Employee Handbook

1. A disclaimer at the beginning of the handbook limits litigation concerning policies and procedures, hours of work, payment, benefits, etc. A good disclaimer will reserve the right of the employer to make changes to the content.
2. A statement of the employer’s commitment to equal opportunity and to providing a harassment-free workplace.
3. Introduction to the organization.
4. Mission statement of the organization.
5. Recruitment practices:
• how jobs are posted
• how positions are filled.
6. Job evaluation methods.
7. Salary Administration Practices:
• merit increases
• performance reviews
8. Working Conditions:
• hours of work
• attendance
• overtime
• training
• retirement
9. Computer/Internet access policy
10. Code of conduct
11. Special Services:
• staff meals
• security
• health & safety
• staff lounge
• smoking room
• parking
12. Human Resources.
13. Complaint/Grievance Procedures.
14. Pay delivery and other payroll services (deductions):
• Savings Plans
• Charitable Donations
• T4
15. Indirect benefits:
• Group Insurance Benefits
• Employee Assistance Plan
• Pension Plan
• Vacation Sick Leave provisions
16. Leaves of Absence:
• Maternity/Parental Leave
• Jury Duty
• Bereavement Leave
• Personal Leave
17. Guidelines for termination of employment.
18. What to do if you cannot report to work.
19. Acknowledgment of receipt of the book by the employee.
20. Statement that the employer may have to treat some employees differently to ensure equal treatment.
21. Personal Information:
• how to update your file
• release of information on your file
• written request required to review your records

Pitfalls in creating an employee handbook:

1. Information is written in language too difficult to understand.
2. Carelessly chosen wording which creates an employment contract.
3. Failure to state information will be updated from time to time (Management can reserve the right to do this).
4. Inconsistency between sections of the handbook.
5. Over promising or setting unachievable standards.
6. Too much information — less is more. It should be short simple English.
7. Hardback copy makes updating extremely expensive and difficult.
8. Too boring, no theme or sense of fun. Employee will not read.