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There isn’t any particular law that requires you to create an employee handbook. However, every organization needs to communicate certain information to employees, from vacation accrual to dental benefits to disciplinary policies. Putting the information in writing ensures that everyone gets the same information, and provides a means to reference the material when a particular topic comes up.
Scope
Although an employee handbook isn’t required, a number of laws require written procedures. In other cases, written procedures are simply a good business practice.
Regulatory citations
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Key definitions
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Summary of requirements
Be wary when creating handbooks. The information could create an implied contract for employment or benefits if not properly worded. Also, since the handbook tends to be a summary of information (especially on topics like medical insurance), be sure that the handbook clearly states that it is for reference only and is not a complete description of all provisions or requirements. Also, provide a statement that the handbook does not create a contract, implied or otherwise, for continued employment.
An organization may want to create more than one version of the employee handbook, especially if it has different classes of employees who qualify for different benefits. There’s nothing wrong with having two or more versions (or a supplemental handbook of additional benefits) to prevent confusion about which benefits apply to which employees.
Company policies vs. Employee handbooks. Although not required, handbooks help ensure consistency in things like discipline and provide a reference for complicated human resources (HR) issues, like creating an affirmative action plan.
A company or organization may have a number of company policies, but these often contain different information than the employee handbook. Organizations may even have policies that employees don’t need to know about, like specific procedures for terminations.
For example, a company might have a policy on how to designate and track Family and Medical Leave under the Family and Medical Leave Act (FMLA), but employees don’t need to know all of the company’s procedures for tracking leave. They might only need to know the eligibility criteria, the amount of leave allowed, and how to request leave. The handbook can be an effective means of communicating what employees need to know without including information that isn’t relevant to them.
Typically, an employee handbook is a condensed version of policies that directly affects the employees themselves (from attendance requirements to vacation accrual), but the handbook is written in more simple terms and doesn’t need to contain information on how certain things are handled internally.