Employee Handbook

What is an Employee Handbook?

An Employee Handbook ("Employee Handbook") is the basic constitution for the employees and includes a set of rules, principles, values, and behaviours, that the employees are expected to follow while working for an organization and define the desired behaviour. Employee Handbook acts as a guide to the employees from the inception of their job until the termination. The Employee Handbook can be used for any type of organization, regardless of size and area of work.

The Employee Handbook is a one-sided agreement drafted by the organization without any negotiation with the employees, and employees will have only the option to sign and acknowledge the same.

What is the difference between the Employee Handbook and the Employee Code of Conduct Policy?

An Employee Handbook covers a broader range of information including organization policies, benefits, and procedures whereas an Employee Code of Conduct Policy focuses specifically on ethical standards and behavioural expectations from the employee.

Is it mandatory to have an Employee Handbook?

No, it is not mandatory to have an Employee Handbook. However, having one helps the employees be informed about the organization's expectations, policies, and procedures, which can reduce misunderstandings and disputes.

What can be the duration of an Employee Handbook?

An Employee Handbook is considered a living or ongoing document with constant changes made to it by the organization as per the changes in law, internal policies, and practices.

What has to be done once the Employee Handbook is ready?

Once the Employee Handbook is filled and printed, it can be circulated to the employees either as soft copies or physical copies, in either case, it is better to get the acknowledgement receipt from the employees. It is always better to make this Employee Handbook available to all employees and other stakeholders of the company.

The Employee Handbook needs to be regularly reviewed and updated to ensure it remains current and relevant to the organization.

What happens when the employee violates the Employee Handbook?

In case any employee violates the Employee Handbook, the organization can set a progressive disciplinary action including verbal warning, warning letter, suspension, and dismissal from the employment.

What must an Employee Handbook contain?

An Employee Handbook must contain the following sections:

• Introduction: including the organization's history, vision, mission and values.
• Employment policies: hiring policies, employment status, and equal opportunity information.
• Compensation and benefits: details on salary, benefits, bonuses, and other compensation.
• Work and attendance: policies on work schedule, attendance, and leave.
• Performance management: this outlines the process for performance evaluation, feedback mechanisms, etc.
• Health and safety: details of safety guidelines to be followed while on duty.
• Grievance procedures: steps for employees to raise concerns with the concerned authority.
• Termination policy: information on resignation, termination, and exit procedures.
• Data protection policy: details and procedures while handling both internal and external confidential information.

What laws are applicable to an Employee Handbook?

The employment laws are covered under the respective Shops and Establishment Acts of the states concerned. In general, rules under the Indian Contract Act, 1872 will be applicable. Following are other general laws that may be applicable:

• The Industrial Disputes Act, 1947
• The Factories Act, 1948
• The Payment of Wages Act, 1936
• The Equal Remuneration Act, 1976
• The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013

How to modify the template?

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