Help Me Write An Effective Employee Policy Manual

By Gregory Covey

An effective employee policy manual is one of the most important tools you can have for your business. Clearly stated policies can answer many questions and avoid employee discontent and misunderstanding. Legally, it can also be a valuable defense exhibit in the event of litigation.

Your manual should do more than merely list what the rules are and what actions are taken when they are broken. It needs to address the accrual and usage of vacation, sick, and personal leave time. For instance, is vacation pay accrued at the rate of eight hours monthly or ninety-six hours annually? If it is accrued each month, it can normally be used immediately. If the accrual is annual, it may be unavailable until after the employee celebrates an anniversary. And is there a minimum amount of vacation time that can be used, such as a full day or a full week? Does notice have to be provided before claiming vacation hours, and if so, how much?

If you have a suggestion award program, you need to define it in the policy manual. What are the procedures for submitting the suggestion, and who reviews them? If there is a financial incentive, how is it paid? Is it included on the next regular paycheck, or is a special check issued? How are the taxes handled on such awards?

Tardiness and absenteeism will have to be addressed. Is there a difference between an employee who calls before the shift starts and one who calls after? How will you handle it if he does not call in? And does he have a few minutes to show up before being considered tardy?

Safety procedures are a critical part of the manual. You should include where safety gear is mandatory and which pieces of equipment must be worn. For example, office staff may have to visit the plant on occasion. Do they need to wear hard hats and safety glasses? What disciplinary actions will be taken for failing to wear required equipment? Will it be a verbal or written warning? Are the penalties progressive, with more severe actions taken if the infractions are repeated?

Include information about payroll schedules. Is there a delay of three days or one week after a pay period ends before checks are issued? What about overtime pay? Does it need to be approved in advance, and if so, who has the authority to do so?

One of the most important parts of the manual is the one covering discrimination and sexual harassment. You need to define what it is, what the company considers a violation, and how to report it.

Any policy the company has on employing relatives, parking, eating at the desk, and employee purchases should also be stated clearly. Personal telephone calls, break periods, and visitors not related to the job are also areas you might wish to address.

If you visualize any questions an employee could have during his time with the company, you can produce an excellent manual. A copy should be provided for every new hire, who should acknowledge receipt in writing. Your employees will be more satisfied if given clear and concise policies, and you will avert any misinformation spread by rumor. This is no guarantee that you will never face litigation, but having a well-developed employee policy manual certainly enhances your ability to win such lawsuits. - 29942

About the Author:

Sign Up for our Free Newsletter

Enter email address here