The Need for the Preparation of Employment Manuals and Agreements

The law does not require employers to write employee handbooks, and some employment agreements are also not mandated by law. It is, however, to the best interest of both employers and employees that preparation of employment manuals and agreements are undertaken before hiring people for the job.

A lot of thought should go into the preparation of employment manuals and agreements. Having manuals and agreements sets expectations on what the employees can expect from their employers and vice versa. An employee handbook will also give employees standard information about workplace rules and regulations, benefits, and the likes. It minimizes misunderstandings and may protect employers from lawsuits filed by employees.

Employment agreements such as non-compete clauses and confidentiality agreements may be very useful to employers. This is true especially if they plan to hire people who will handle sensitive business information and trade secrets.

Here are a few things that you may want to include in your employee handbook:

• Company introduction – it is always good for an employee handbook to include a clearly stated company history, philosophy, and values.


• Salary procedures – this will include the methods of payment, how to ask for a raise and when employees will be eligible for it. It’s also good if you can explain the schedule of bonuses, pay cut-offs and the likes.


• Company rules – if you have a strict dress code, this should be indicated clearly in the company handbook. If you impose certain rules such as an “English only” policy, you may also indicate the areas where it will be in effect.


• Disciplinary actions – what acts from employees would lead to disciplinary action? Some companies even post a table of the kind of offense and the corresponding disciplinary action (a memo, suspension, etc) depending on the severity of the offense and how many times the employee committed it.


• Benefits – include all non-government mandated bonuses and benefits that you give employees so that they’ll know what to expect. If you include a severance package, include it and all its provisions and conditions in the handbook.


• Sexual harassment policy – it’s important that this policy is clearly stated in the handbook. What would constitute sexual harassment, how to file a complaint, and a clear declaration that this form of harassment will not be tolerated in the workplace.


• Attendance – emphasize the need for punctuality and good attendance. Explain the process for filing leaves, and the consequences for performing poorly in this area.


• Hours – explain how many hours employees are expected to work, and the process for filing overtime.


• Smoking – indicate your rules about on-the-job smoking. If you have a smoking area and if you provide smoking breaks for employees, include that as well.


• Conduct that are not covered in the handbook – of course you can’t cover every kind of issue in the workplace in your employee handbook. Be careful to include this to prevent further disputes about offenses that were not explicitly indicated in the handbook.

To make sure that all the provisions in your employee handbook and other documents are legally sound, it’s best to involve the help of lawyers in the preparation of employment manuals and agreements.