Do Small Businesses Need an Employee Handbook?

Although most small businesses provide their employees with some form of contract of employment, many do not issue an employee handbook.
 
An employee handbook is a very useful means of explaining what is expected in the workplace and how any employment grievances by an employer or employee should be handled. Each employee should have access to a current handbook, which should contain a variety of information from sick days to dress code.

A comprehensive employee handbook is an invaluable asset to many small businesses. Employees with the book have "no excuse" for being unfamillar with the rules. Additionally, it saves employees from constantly asking your HR personnel about sick days or vacation!

What Should a Small Business Employee Handbook Contain?

Because all small businesses are different, the details contained within an employee handbook will vary depending on the nature of the business. However, a number of core issues should normally be included in all employee handbooks.

Conditions of Employment

The employee handbook should explain the basic conditions employment. They might include the following:
  • hours of work
  • overtime working
  • vacation and holiday entitlement
  • staff dress code
  • notice periods
  • pension plan
  • health and safety (including smoking policies).

Employee Absences

One of the biggest areas for potential controversy is employee absences. The employee handbook should include information about policies regarding all types of absences, both approved and unapproved. Topics covered in employee handbooks should include:
  • holidays
  • leave of absence due to unforeseen circumstances
  • maternity leave
  • sick days.

Employee Disciplinary Procedures

The employee handbook should include details of the procedures to be used if the business decides to take action against employees. Including the disciplinary procedures in the employee handbook helps to make sure that all employees are dealt with equally if and when a grievance arises.

An appeals procedure should also be included in the employee handbook to simplify dealing with disputes should they occur.

Equal Opportunities for All Employee

All businesses need to ensure that no employee suffers any form of discrimination within the workplace. The employee handbook needs to cover areas such as equal pay, racial discrimination, sexual harassment and disability issues, so that business owners do not risk becoming liable for prosecution.

Employee Use of Information Technology

Nowadays, nearly everyone uses computers in their work. The employee handbook should cover both data protection issues and health and safety issues relating to information technology.

Distribution of the Employee Handbook

The ideal time to issue a copy of the employee handbook to an employee is when they are appointed to a new position. All businesses should review their employee handbook, at least once a year. After changes have been made, the revised edition should be reissued and distributed to all employees.