An employee handbook lays out a company’s policies, expectations, and workplace guidelines. It helps employees understand their rights, responsibilities, and the company’s culture. It’s a go-to resource for both new hires and long-time employees, ensuring consistency in how workplace issues are handled.

What should an employee handbook include?

A solid employee handbook should cover key areas like:

  • Company overview: Mission, vision, values, and workplace culture.
  • Employment policies: Hiring, termination, work hours, and attendance.
  • Code of conduct: Behavior expectations, ethics, dress code, and communication.
  • Compensation and benefits: Salary, bonuses, insurance, and retirement plans.
  • Leave policies: Vacation, sick leave, parental leave, and unpaid time off.
  • Workplace safety: Health and safety procedures, emergency protocols, and reporting hazards.
  • Technology and internet usage: Rules for company devices, email, and social media.
  • Anti-discrimination and harassment policies: Commitment to equal employment, harassment prevention, and reporting processes.
  • Performance reviews and promotions: Evaluation criteria, feedback process, and career growth opportunities.

What’s the difference between an HR policy and an employee handbook?

They’re related but serve different purposes:

  • HR policies are internal documents used by the HR team to manage employees and stay compliant with labor laws. These are more detailed and legally focused.
  • Employee handbooks summarize HR policies in a way that’s easy for employees to understand. They communicate workplace expectations and company culture.

In short, HR policies shape how the company operates, while the handbook helps employees navigate those policies.

How does an employee handbook benefit employees and employers?

It’s useful for both sides:

For employees:

  • Sets clear expectations, reducing confusion about workplace rules.
  • Increases transparency in company policies and benefits.
  • Helps employees understand their rights and protections.
  • Acts as a reference for workplace concerns or disputes.

For employers:

  • Ensures consistent enforcement of company policies.
  • Lowers legal risks by clearly stating company rules.
  • Builds trust by promoting transparency.
  • Makes onboarding easier by giving new hires a clear guide.

How to create an employee handbook?

To create your employee handbook, you should:

  1. Define the purpose: Decide what information to include and how it will be used.
  2. Gather key policies: Work with HR, management, and legal teams to ensure accuracy and compliance.
  3. Use simple, clear language: Skip legal jargon—make it easy to understand.
  4. Organize logically: Use sections, bullet points, and headers for readability.
  5. Add a disclaimer: Make it clear that policies may change and the handbook isn’t a legal contract.
  6. Review and update regularly: Keep it current with new laws and company policies.
  7. Distribute and train employees: Provide digital or printed copies and offer training sessions on key policies.

A well-structured employee handbook helps create a positive, well-informed workplace.