Dec 16, 2025

Employee Handbooks: The Basics

Company policies, procedures and information offer employees — both new and current — a place to turn when they have questions about company information. Read through to learn how to streamline policies with templates.

An employee handbook is a vital resource for new hires, helping them quickly adapt to your company's culture, policies and expectations. It serves as a guide to workplace conduct, legal regulations and company benefits.

Additionally, it reinforces accountability — employees sign an acknowledgment form confirming they have read and understood the handbook, which can be helpful when enforcing company policies.

Introduction and company overview

The handbook should begin with an introduction that outlines its purpose and welcomes new employees to the organization. This section typically includes the following:

• A statement of the handbook's purpose
• A welcome message from leadership
• An overview of the company's history, mission and values

This section sets the tone for workplace culture and provides new employees with an understanding of the organization they are joining.

Workplace conduct and expectations

Clearly defining workplace conduct ensures employees understand how to represent the company professionally, both in and outside the office. This section should include these details:

• Code of conduct — expectations for professionalism and behavior
• Non-solicitation policy — guidelines on soliciting co-workers for personal or commercial ventures
• Company ethics and image — how employees should uphold company values

Additionally, outline the legal aspects of employment, such as confidentiality agreements, noncompete clauses and employee acknowledgment forms.

Employment policies and procedures

This section provides clarity on employment-related policies, helping employees understand their rights and responsibilities.

Here are some key topics you may want to include:

• Equal employment opportunity policy — commitment to a fair and inclusive workplace
• Promotion guidelines — how career growth and internal mobility are handled
• Expense reimbursements — policies for work-related expenses
• Special accommodations — procedures for requesting workplace adjustments
• Employment of relatives — policies on hiring and working with family members
• Personnel file policy — how employee records are maintained and accessed

Workplace safety and inclusion should also be addressed, including harassment and discrimination policies, fraternization guidelines, and workers' compensation procedures.

Attendance and work schedules

Establishing clear expectations for attendance and working hours helps maintain productivity and fairness.

This section should cover these details:

• Standard work hours — define expected schedules
• Exempt vs. nonexempt status — clarify wage classifications
• Overtime policies — guidelines for working beyond standard hours
• Break and meal periods — legal requirements and company-specific rules
• Remote work policies — expectations for employees working from home
• Weather-related absences — procedures for inclement weather or emergencies
• Termination due to inability to work — guidelines for extended absences

Professionalism in the workplace

Maintaining a professional and respectful work environment is essential. Clearly outline policies related to this information:

• Dress code — appropriate attire for the workplace
• Smoking, drugs and alcohol — rules on substance use
• Workplace violence and weapons — safety policies to protect employees
• Security and parking — guidelines for workplace safety and facility use
• Visitor policy — rules for nonemployees on company premises
• Conflicts of interest — addressing potential ethical concerns
• Gifts and business ethics — policies on giving and receiving gifts

These policies help reinforce a professional and secure working environment for all employees.

Compensation and benefits

Employees should have a clear understanding of their compensation and available benefits. This section should outline the following information:

• Payroll schedule — when and how employees are paid
• Time tracking — requirements for logging work hours
• Benefits eligibility — who qualifies for which benefits
• Health, dental and vision insurance — available health care options
• Life and disability insurance — financial protection for employees
• Retirement plans — company-sponsored savings plans
• Bonuses and stock options — performance incentives
• Workers' compensation and unemployment assistance — employee protections
• Paid legal aid and supplemental insurance — additional coverage options

Providing transparency on these topics ensures employees understand their total compensation package.

Time off and leave policies

Employees need clear guidelines on when and how they can take time off. Cover policies related to the following topics:

• Paid holidays and vacation — company-approved days off
• Paid time off and sick leave — accrual and usage policies
• Family and Medical Leave Act — employee rights under federal law
• Bereavement leave — time off for personal loss
• Jury duty and military leave — requirements for civic and military obligations

Acceptable use of company property

To maintain security and productivity, it's important to establish guidelines for using company resources:

• Computers and phones — proper use of company-issued devices         
• Social media and blogging policies — what employees can and cannot share online

Clearly defining these policies helps protect company data and maintain professionalism in digital communications.

Employee monitoring policies

If your company monitors employee activities — whether digitally or physically — transparency is key. This section should outline the following:

• Digital surveillance — how and why company devices or communications are monitored
• Physical surveillance — security measures in the workplace

Performance management and discipline

A structured approach to performance management helps employees grow while maintaining accountability.

Key areas to cover are as follows:

• Professional development — opportunities for skill-building and career advancement
• Performance evaluations — how employees are assessed
• Disciplinary actions — procedures for addressing policy violations
• Conflict resolution — steps for resolving workplace disputes
• Formal complaints — how employees can report concerns

Legal disclaimers and handbook updates

To protect the company and set proper expectations, include disclaimers that state the following:

• The employee handbook is not an enforceable contract.
• Policies are subject to change at any time.

Please note a handbook will need to be updated if and when there are changes to industry-related regulations, labor laws or company policies.

The best way to go about this is to minimize guesswork and elect a staff member who is responsible for updating the employee handbook when said changes come about. That way, if difficult questions pop up regarding certain protocols or how something should be done, the handbook can reduce confusion for everyone involved.

Wrapping it up

It is wise to outsource your handbook, but make sure you customize them according to your company's needs and rules.

Use everyday language, but feel free to ask an employment specialist to review it to make sure it abides by both federal and state regulations. The easier the material is to read, the easier it will be for your staff to understand the policies and implement them at work, resulting in a more positive and productive work culture.

Does this sound complicated? It is! Ask about our HR services that will help with the creation of your company's handbook to ensure it adheres to regulations and meets your company's needs.

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