A lawsuit against your organization is a hassle and can cost your company hundreds of thousands of dollars. Moreover, it will also damage your company’s reputation. One of the most effective ways to avoid this is by creating a complete and easy-to-understand employee handbook for your small business. It is best to work with a Human Resources professional to avoid legal issues in the future.
Why Having an Employee Handbook is a Smart Idea
Believe it or not, there were about 99,000 discrimination charges filed in 2012 under the Equal Employment Opportunity Commission. When an employee files a lawsuit against a company, it will have various negative impacts on your business:
- Builds a negative reputation for your business in the community
- Loss of employee morale
- A significant expense for your defense
By having a comprehensive employee handbook, you are reducing the number of claims filed against your business. It can be the main defense against litigation and its various costs. The handbook is a document that demonstrates your organization’s proper compliance with the policies.
Additionally, having a well-written employee handbook for your small business will also benefit both your company and your workers. It consists of clear expectations for your employees. This way, each worker knows his/her limitations and rights.
What Should Be Included in Your Employee Handbook
Every employer, regardless of the number of employees it has, should create and include all of its policies in an employee handbook. Outlining the guidelines and policies of your organization should be the basic goal of your employee handbook.
When a new employee is hired, he or she should be aware that reading and understanding the contents of the handbook is an essential aspect of the employment process. It helps the worker become familiar with the new job and company he or she is employed in.
A handbook states that your company’s rules and standards are communicated and implemented fairly. Your employees will be aware that you are consistent with your guidelines and policies.
The key to the successful facilitation of this process is by composing a handbook with a thorough content. Keep that it best to keep the document easier to read.
Make sure that your employee handbook Includes sections that address the following criteria:
- Hiring
- Discipline
- Termination
- Health
- Workplace safety
- Conduct and behavior
- Leaves and other benefits
- Timekeeping and compensation
- At-will employment
- All policies and guidelines set by your organization
Seek the Help of a Human Resources Professional When Creating Your Employee Handbook
How will you ensure that your employee handbook complies with all state and federal laws? You must work with a Human Resources expert. After your handbook is created, you must take time to review the content on a regular basis so you will be able to determine the policies that have to be updated, added, or deleted. When you update a policy, make sure that you have it checked by a Human Resources legal counsel.
What to do After a Handbook was Created?
The next important step after your company’s employee handbook for your small business is created is to give it to every new employee. When they received the document, the worker must acknowledge the receipt by signing the acknowledgment page.
Dissemination of the employee handbook can be done in several ways.
Distributing Employee Handbooks the Traditional Way
The traditional way (but is still used nowadays by some companies) of distributing the handbook is by printing it and handing a copy to each employee. It is a bit costly because you will have to spend on the printing fees, paper, binding, etc. The master hard copy is usually retained in the workplace.
Distributing Employee Handbooks the Modern Way
With advances in technology, many tasks can be completed over the computer. Many employers prefer the electronic distribution of the handbook because it offers convenience and flexibility. Electronic dissemination also saves time and money.
There are two ways to use the computer in the handbook distribution: 1) the employer makes the handbook accessible to its workers via the intranet, or 2) utilize a service that stores the handbook electronically, gives the employees access to view and read the document, gather electronic signatures of workers who have received and understood the handbook, and store those acknowledgment receipts.
What to Keep in Mind When Distributing the Employee Handbook
Whichever option you choose, you, as the employer, must make a validation that each of your workers has a copy of your company’s handbook and that they have reviewed and understood its content. It indicates that the signee has a full understanding of the “at-will” statement.
One thing that you should require your employees is to sign the employee handbook acknowledgment form or receipt upon employment. Although not required by law, this step is very crucial because it is proof that handbook distribution is one of the tasks that your organization does not ignore.
A copy of the acknowledgment form must be stored in the employee’s electronic or physical personnel file. Do not forget to provide the employee with a copy of the receipt. If that employee files a lawsuit against your company in the future, you have proper documentation that proves you have asked that worker to sign the form and is aware that the document was given to them upon employment.
Other Options if Employees Don’t Want to Sign the Acknowledgment Form
If there are workers who do not want to sign the acknowledgment form, you cannot force them to do that. Employers have other options. You may require them to handwrite this: “I refuse to sign the acknowledgment form.” It should include the date of the notation.
Another option is to ask one of your company’s representatives to write: “The employee refused to sign the Employee Handbook acknowledgment form.” Let your chosen representative and another witness sign the document with the date of notation.
Lack Time to Create a Handbook But Want to Protect Your Company from Lawsuit?
Creating the initial employee handbook for your small business or updating it can be a difficult and time-consuming task for some employers. This process does not have to be daunting.
With our HR on Demand Service, our Human Resources professionals will provide you with guidance in creating a handbook that complies with the laws. They have extensive knowledge and experience in best practices and policies in the workplace. We will give you and your employees peace of mind with a comprehensive employee handbook.
Call us now at Call +1 (714) 634-4838
