The Importance of Employee Handbook in an Organisation

Every businesses want to have their policy in place. And therefore, create employee handbook that clearly communicate your workplace policies. The purpose of a clear concise employee handbook in a business cannot be underestimated. A definite employee policies can resolve disputes before they arise and protect both the employer and the employee from any sort of misperception and the potential of litigation.

Why employee handbook for an organisation?

Employee handbook set forth expectation and clearly defines the boundaries for the employees and let them know what their rules and benefits are. Employers clearly communicate to the employees regarding how they should behave, what they should wear and how they will be compensated during a professional crisis. Once the employees understand their responsibilities, they have a reference point for how to execute their job and maintain discipline

Employee handbook can protect employers by clearly stating the policies and procedures that can prevent liability. If an employee has a dispute with his employer, he may try to use the employee handbook as leverage to prove deficiency on employer’s part. Courts may also consider employee handbook to be a binding contract, even if the employment relation is at- will. A well-structured handbook can protect both the employee and the employer as it set forth certain rules and structures whenever an issue arises

The employee manuals establish information about organisation’s policies regarding holidays, leave, work hours, pay procedures, overtime pay, performance reviews, recreational breaks, dress code, salary or pay revision or pay procedures. They also contain information about orientation and training policies as well as relieving or termination procedures. This helps employees build confidence while they learn what kind of treatment they can expect in the organisation

The handbook present organisation’s policies on using companies as well as personal gadgets and other equipment within the office premises. Some companies have restrictions on the usage of communication devices like mobile phones. Employee handbooks also embrace the terms and conditions for the use of these devices and also the sites they employees are not expected to visit

With a well-structured and planned handbook, the HR manager can save time. They need not have to explain the same policies every time a new employee joins or answer the same question over and again

Employee handbook convey performance parameters and benefits that employees receive on reaching those parameters. It also covers information regarding the promotion and demotion and clearly help employees gain clarity on their job responsibilities

The handbooks publish company’s policies on employee safety measures and procedures to manage occupational hazards and accidents

In a nutshell, employees’ manuals brings in uniformity across different organisation. The handbook set guidelines for everyone to follow and state the consequences of violating the rules. The handbook also inform employees of statutory laws regarding workplace behaviour with co-workers and management. This prevent workplace conflicts and legal disputes.

What is employee handbook comprised of?


Describe company’s history and business philosophy.

Hours of work

State normal working hours for full-time employees, part-time employees and overtime compensation.


How pay and salaries are set and how they can be raised. The bonus program is also included.


Explain the rules related to vacation pay, sick leaves, unpaid leaves. Other benefits include health benefits, insurance benefits, retirement benefits and employee referral benefits


Handbook reminds employees that sexual and other types of harassments are illegal and violet company’s policies.


Explain several unexplained absences or repeated tardiness.


Manual let employees learn as what procedures they should follow to report and resolve any complaints. A written complaint procedure can help shield your business from any liability especially if an employee later sues for illegal discrimination and harassment.

Use of Electronic gadgets

The handbook includes company’s policies on use of email, blogs, social network sites and the internet. The employees are made aware of the fact, that their communication may be read and are not private.


The employee manual explains the types of conduct that can get employee in trouble. It could be theft, fighting, violence and harassment.

Workplace civility

Employees at all levels of the company are expected to treat each other with respect and the success of the business depends on cooperation and teamwork among all employees.

If your company is in need of employee handbook, check with Lighthouseriskservice, The manual will give both you and your employee’s full peace of mind when it comes to taking the right steps regarding any disciplinary procedures in an organisation.

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