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Employee handbooks also help prevent legal disputes between employers and employees To ensure that all employees have received and reviewed the employee handbook, they may be required to sign an acknowledgment form
Moreover, a simple employee handbook establishes important legal protections for employers and defines the employment relationship For example, if an employee is fired, the “at-will” policy in a well-written handbook should protect the company from legal retribution
There are a few important distinctions between employee contracts and handbooks First and foremost, an employment contract is legally binding while an employee handbook is not--although it should outline various company legal policies Secondly, employee contracts are specific to each employee and therefore apply solely to the individual who signs one
An employee contract details the legal rights and obligations of the employee To that extent, an employee must be consulted if an employer changes the terms of the contract
Employee handbooks, on the other hand, detail guidelines, policies, and procedures for all company employees These include expected behaviors and practices that may not be legally binding (i e punctuality) Furthermore, with handbooks, employers can update the handbook as long as their revisions are sent to employees
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Handbooks allow companies to detail the expectations of all staff members in a standardized way They also help establish the company’s standards of accountability Additionally, they provide a platform to share the organization's culture, values, and mission with its employees, and provide a resource for employees regarding their benefits, perks, policies, and so forth
Without a written handbook, employees may be left with an incomplete understanding of their benefits, and may therefore not fully take advantage of all you offer as a company More seriously, an employee handbook communicates expected workplace behavior and performance Therefore, if issues arise with employee behavior or performance, a handbook makes it difficult for the employee in question to claim ignorance
Do startups need an employee handbook to cover only a few people? We recommend any organization with more than five employees draft an employee handbook Creating one in the early stages of the company’s development enables the founders to work out company values and policies at the ground-level and helps ensure that culture imbues future growth
More specifically, creating a handbook allows you to sort out smaller policies, like which expenses you’ll reimburse, while those costs are still marginal
We also recommend that family businesses create an employee handbook, even for family members Often family operations have difficulty separating business from family Having a written handbook should help members of a family business avoid difficult disputes over work policies that can affect relationships at home
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