InstituteHR PoliciesPolicies and ProceduresUSAHR ManagementEnglishAnalysisFocus AreaHuman ResourcesIn Depth (Level 3)
What policies does an employer need?
['HR Policies']

- While specific policies depend on a company’s needs, several policies are considered common practice.
The policies implemented will vary depending on the company’s specific work operations and environment. Below are some of the most common policies companies maintain:
- Anti-discrimination — Employees should be aware that that the company prohibits any kind of discrimination in the workplace. The policy should include clear explanations about what constitutes discrimination and should outline the company’s commitment to keeping it out of the workplace.
- Attendance — Provide expectations for employee attendance, disciplinary measures, jury duty, etc. Employee attendance can have a direct effect on a company’s bottom line, and unexcused absences should not go unnoticed. Employees need to know what their obligations are and what potential consequences there may be.
- Benefits — Share details on health insurance, tuition assistance, life insurance, retirement plans, pension plans, employee assistance programs (EAPs), medical reimbursement, etc.
- Confidentiality — If employees are dealing with sensitive or confidential information, it may be wise to ask those people to sign a confidentiality statement. Gossip, faulty conclusions based on incomplete information, speculation or premature discussion of company plans or expectations can seriously harm and perhaps destroy a business or its customers. Employees should be warned of this danger.
- Continuation of health benefits/COBRA (the Consolidated Omnibus Budget Reconciliation Act) — Create a policy for continuation of health/medical benefits to employees that leave the company. Despite providing the general notice under COBRA, employees benefit from having a reference to turn to.
- Dress code — If the company has any requirements or expectations for appearance, inform employees through a policy. Some companies require uniforms; if so, it’s best to indicate who provides and pays for uniforms — the employer or the employee. Grooming requirements may also be considered. These should be stated clearly, as should requirements for safety or sanitary garments.
- Email/internet/computer — Employees need to know that computers and email and internet accounts are the property of the company and that there should be no expectation of privacy. It may also be a good idea to include information on how a company may monitor employees’ computer, email, and internet usage.
- Employee separation — Document information for exit interviews, severance pay, and references. Although termination is distasteful to many business owners, it is wise to have a written policy on matters such as layoffs, seniority rights, severance pay, and the conditions that warrant summary discharge. Document in writing all events leading to a summary discharge, as this evidence will be critical in determining liability in unemployment compensation claims as well as possible civil actions.
- Family and medical leave — Share eligibility, procedures, who to contact, and what is or is not Family and Medical Leave Act (FMLA) leave. The FMLA requires a poster to inform employees of their rights, but employers may provide more detail.
- Flexible scheduling — Describe in detail any flexible scheduling programs the company has, guidelines, and eligibility. Flexible scheduling helps with workplace-family balance issues, and employees benefit from knowing the boundaries.
- Grievance procedures — Whether the company has a collective bargaining agreement or not, employees benefit from knowing what to do with their complaints. Plan for grievances and establish procedures. Consider the employee’s right to demand review and consider provisions for third party arbitration.
- Holidays — Describe eligibility for holiday benefits, holiday closings, and when work is permitted or required.
- Payroll — Share when employees are paid, and options such as automatic deposit. Employees need to know when they will be paid, and on what basis.
- Performance reviews — Describe when reviews are conducted, criteria, results, etc. Each employee’s performance should be periodically reviewed and evaluated. Organizations need to determine what factors will be considered. Determinations must be made on whether serious deficiencies will be cited in writing and a deadline set for improvement; and whether salary adjustments and training recommendations will be made based on the review.
- Promotions — Detail what is expected of employees to achieve promotion, etc. Consider promotion matters including normal increases of wages and salaries, changes of job titles and the effect of the company’s growth on employee advancement.
- Safety rules — Share the importance of safety, consequences for not following procedures, reporting incidents, workers’ comp, etc. Every employee has certain responsibilities to help preserve safe and secure working conditions, be it opening the doors in the morning or locking up at night, tending a cash register, being alert for shoplifting, being alert for conditions that can cause injury, knowing what to do in case of a robbery or other emergency.
- Sexual harassment — Provide clear definitions of sexual harassment, consequences, disciplinary issues, etc. Actively prohibiting sexual harassment can go a long way in court if a sexual harassment claim is filed. If employers have a policy, it needs to be enforced.
- Sick leave — Share information on eligibility, scheduling, allotment, accrual dates, calling in, and carrying over time to another year. Employees benefit from knowing what the limits are to the company’s sick leave policies, and any potential consequences.
- Smoking — Are there designated smoking areas? Is smoking prohibited? Has the policy defined the company’s stance on e-cigarettes? Policies for smoking on the job or on the work premises should be clear and enforced.
- Substance abuse — Document consequences for substance abuse on the job. Use or abuse of alcohol or illegal substances on the job usually results in termination, especially after one or two warnings. Organizations may also consider employee use or abuse outside work when it affects such things as job performance through tardiness, absence, inattention, mood swings, and avoidable accidents. Local social services may be available to help troubled employees. Policies on substance abuse must be clear, in writing, and enforced.
- Time worked recordkeeping — What forms are to be used by various employees for tracking time worked. The Fair Labor Standards Act (FLSA) requires the recording of hours worked by all employees who are eligible to receive overtime pay.
- Use of company property — Share proper use of computers, tools, copy machines, telephones, supplies, etc. An employee may ask to use company equipment or facilities for personal business. Limits or prohibitions on such use should be clear from the beginning of a person’s employment.
- Vacation — Describe eligibility, scheduling, allotment, accrual dates, and carrying over time to another year. Another consideration may be whether to allow employees time off for personal needs, emergencies in the family, or special religious observances (be aware of religious discrimination laws). Time off policies may also include lunch hours and work breaks during the day, jury duty, and service in the local volunteer fire department, or the local National Guard and Civil Air Patrol units.
- Weapons — If weapons are mentioned only within a larger code of conduct policy, consider separating weapons into their own policy. The policy should clearly define what constitutes a weapon, whether weapons are allowed on company premises, and how violations of the policy should be reported and will be handled. Be sure to review all state and local laws. For instance, some states specifically allow employees to store weapons in their private vehicles on employer property.
- Work from home — More employees now than ever are working from home, and employees and employers benefit from having a policy that communicates what is expected. Expectations can include hours of operation, communicating, attending meetings, and so forth. Dress codes are likely somewhat moot, but if employees are engaged in online calls or conferences that include video, appropriate attire should be worn.
- Work hours — Describe when employees are expected to work and when employees cannot work. Consider the number of hours per week, the number of days per week, evening and holiday work, and the time and method of payment for both regular and overtime hours. Unnecessary payment of overtime cuts profits. With planning, employees’ work should be organized to keep overtime at a minimum. When peak periods occur, the use of part-time help paid at regular rates may be considered.