Employee Handbook: What to Include

An employee handbook sets clear expectations and protects your business. Here's what to include and how to get it right.

Why Have a Handbook?

Business Benefits

• Consistency: Same rules apply to everyone
• Clarity: Employees know what's expected
• Protection: Evidence of policies if disputes arise
• Efficiency: Reduces repeated questions
• Culture: Communicates your values

Legal Benefits

• Documents required procedures (disciplinary, grievance)
• Shows commitment to compliance
• Evidence in tribunal claims
• Demonstrates fair and equal treatment

Essential Policies

Required by Law

Must be provided in writing:

• Disciplinary and dismissal procedure
• Grievance procedure
• Information about pensions

Must be made available:

• Health and safety policy (if 5+ employees)

Highly Recommended

• Absence and sickness reporting
• Annual leave
• Equal opportunities
• Anti-harassment and bullying
• Data protection
• IT and communications use
• Social media

Handbook Structure

Typical Sections

1. Welcome and Introduction

• Company background
• Values and culture
• How to use the handbook

2. Starting Work

• Probationary period
• Induction
• Training

3. Pay and Benefits

• Pay arrangements
• Expenses
• Benefits overview
• Pension

4. Working Arrangements

• Hours of work
• Flexible working
• Remote working
• Time recording

5. Leave and Absence

• Annual leave
• Sickness absence
• Maternity/paternity/adoption
• Other leave types

6. Standards and Conduct

• Code of conduct
• Dress code
• Alcohol and drugs
• Conflicts of interest

7. Performance

• Appraisals
• Development
• Performance management

8. Disciplinary and Grievance

• Disciplinary procedure
• Grievance procedure
• Appeal processes

9. Policies

• Equal opportunities
• Anti-harassment
• Health and safety
• Data protection
• IT and communications
• Social media
• Whistleblowing

10. Leaving

• Notice periods
• Resignation
• Exit interviews
• Return of property

Key Policies in Detail

Disciplinary Procedure

Must include:

• What constitutes misconduct
• Examples of gross misconduct
• Investigation process
• Hearing procedure
• Possible sanctions
• Appeal process
• Right to be accompanied

Grievance Procedure

Must include:

• How to raise a grievance
• Informal resolution option
• Formal procedure
• Hearing process
• Appeal process
• Timescales

Equal Opportunities

Should include:

• Commitment to equality
• Protected characteristics
• What discrimination looks like
• How to report concerns
• Consequences of breach

Anti-Harassment and Bullying

Should include:

• Definitions
• Examples of unacceptable behaviour
• Reporting mechanism
• Investigation process
• Support available
• Consequences

Sickness Absence

Should include:

• How to report absence
• Who to contact
• When to contact (timescales)
• Certification requirements
• SSP and company sick pay
• Return to work process
• Long-term sickness

IT and Communications

Should include:

• Acceptable use
• Personal use rules
• Monitoring statement
• Data security
• Password requirements
• Remote working rules
• Consequences of breach

Social Media

Should include:

• Personal use guidelines
• Representing the company
• Confidentiality
• Colleagues and clients
• Monitoring
• Consequences of breach

Contractual vs Non-Contractual

Contractual Terms

Become part of the employment contract:

• Binding on both parties
• Can only change with agreement
• Breach is breach of contract

Examples: Enhanced sick pay, enhanced redundancy, specific benefits.

Non-Contractual Policies

Guidance that can be changed:

• Can be updated without agreement
• Should still consult before changing
• Not breach of contract if changed

Examples: Most policies, procedures, guidelines.

Making It Clear

Include a statement like:

"The policies and procedures in this handbook are non-contractual unless expressly stated otherwise. The Company reserves the right to amend them from time to time. Employees will be notified of any changes.

Where policies are stated to be contractual, any changes will require consultation with affected employees."

Drafting Tips

Use Plain English

• Short sentences
• Clear language
• Avoid jargon
• Explain technical terms

Be Specific

Vague: "Employees should report absence promptly."

Better: "If you cannot attend work, you must telephone your manager before 9am on the first day of absence."

Include Examples

Where helpful, give examples of:

• What constitutes misconduct
• How to apply a policy
• What to do in specific situations

Be Consistent

• Use same terminology throughout
• Apply policies equally
• Don't contradict other documents

Distribution

How to Provide

Options:

• Printed copy (signed receipt)
• Electronic copy (email with acknowledgment)
• Intranet (with notification)

Acknowledgment

Get employees to confirm:

• They've received it
• They've read it (or will)
• They'll comply with policies

Sample acknowledgment:

"I confirm that I have received a copy of the Employee Handbook dated [date]. I agree to read and comply with the policies and procedures it contains. I understand that the handbook may be amended from time to time and that I will be notified of changes."

Signed: _________________ Date: _________

New Starters

Include in induction:

• Provide copy on day one
• Highlight key policies
• Get acknowledgment signed
• Answer questions

Updates

When changing policies:

• Notify all employees
• Provide updated version
• Explain what's changed
• Get re-acknowledgment for significant changes

Keeping It Current

Annual Review

At minimum, check:

• Are statutory rates current?
• Have laws changed?
• Do procedures reflect practice?
• Are policies still appropriate?

When Laws Change

Update for:

• Minimum wage changes
• Statutory leave changes
• New statutory rights
• Changes to existing rights

When Practice Changes

Update for:

• New working patterns
• New technology
• Changed procedures
• Lessons from incidents

Common Mistakes

1. Too Long and Complex

Problem: No one reads it.

Solution: Keep it concise, use plain language.

2. Not Updated

Problem: Contains wrong information.

Solution: Annual review, track legal changes.

3. Inconsistent with Contracts

Problem: Handbook says one thing, contract another.

Solution: Align documents, specify which takes precedence.

4. No Acknowledgment

Problem: Employee claims didn't know about policy.

Solution: Get signed acknowledgment.

5. Unclear on Contractual Status

Problem: Dispute about whether policy is contractual.

Solution: State clearly which policies are contractual.

6. Not Following Own Policies

Problem: Creates unfairness, undermines defences.

Solution: Train managers, follow procedures.

Digital Handbooks

Advantages

• Easy to update
• Searchable
• Environmentally friendly
• Trackable (who's accessed)

Considerations

• Not everyone has easy computer access
• Need system to notify of changes
• Consider hard copy option
• Maintain version control

E-signatures

Electronic acknowledgment is generally valid:

• Use reliable e-signature tool
• Keep records
• Make process simple

Checklist

Creating a Handbook

• List required policies
• Draft in plain English
• Include all essential content
• Specify contractual status
• Review for consistency with contracts
• Have legally reviewed
• Plan distribution method
• Create acknowledgment form

Launching the Handbook

• Distribute to all employees
• Brief managers on content
• Collect acknowledgments
• Answer questions
• Store acknowledgments securely

Maintaining the Handbook

• Schedule annual review
• Monitor legal changes
• Update when needed
• Communicate changes
• Re-collect acknowledgments for major changes
• Maintain version history