Having a comprehensive employee handbook is crucial for any business, but developing the document for your organization can be overwhelming when you consider the extent of information that must be included.

Considered a necessarily evil, employee handbooks are generally looked at by employers as a means to cover their….assets, in the event of a potential lawsuit.

Effective employee handbooks let employees know what is expected of them, and helps employers reduce the risk of litigation that can harm their company’s success.

While valuable employee handbooks will be extensive and specific to the business, ALL employee handbooks should cover some key points.

Disclaimer: While the list below are must-haves, there are several other provisions that are required for to create a comprehensive employee handbook, and employers must also determine what they need to include by law.

Compensation and Benefits

Your organization’s employee handbook should clearly lay out the compensation structure (weekly, bi-weekly, monthly) part and full-time schedule, overtime policies, and salary increases.

If necessary, any salary bonuses, stock options, or commission opportunities should also be explained.

This is also the appropriate section for benefits to be outlined. Does your organization offer health, dental, vision and life insurance plan options? What about wellness programs or a transit allowance for commuters? All of this should be articulated here.

Code of Conduct

Under this heading, the handbook should detail your company’s attendance policies, break periods, and other general expectations for employee conduct.

Other things the employee handbook should cover in this section include dress code standards, substance abuse and smoking policies, and internet and/or email use policies.

Keep in mind that some things, such as anti-discrimination policies are required by law to be included.

Depending on your industry, you may also be legally required to outline securities laws, or conflict of interests.

Due to the legal importance of this section, make sure it is written clearly and without too much legal jargon that could prevent employees from understanding the content!

Vacation Policy

While it seems basic, there is a lot to be covered in this sub-section as well.

How do employees accrue vacation time? How do they request time off? Is it flexible i.e. can vacation days be rolled over into the next calendar year?

This section should also spell out which holidays your organization observes, if employees will receive higher compensation for working on holidays, as well as sick leave, medical leave, or maternity leave.

Other things you may not have thought of...

Depending on the nature of your business, there could be other miscellaneous policies important to you employee handbook.

Do your employees sometimes have to drive to client meetings? Be sure to detail your reimbursement or company vehicle use policies.

Are some of your employees equipped with large social networks? Consider including a social media use policy in your employee handbook.

Are your employees using their own devices at work? You should clearly outline your organization's cell phone and electronic device policy.

A few closing notes

Your organization's employee handbook is a living document. This means it should be updated at least annually in order to stay compliant. Consider that 10 years ago, a social media policy wouldn't have been relevant - but is crucial today.

As well, reviewing the handbook is an important step of the onboarding process for new employees.

Need some extra tips to help get your employee handbook up to date? Check out one of our free resources below!