One of the central tasks of any HR department is to develop and distribute employee handbooks, ensuring that all team members have a clear understanding of expectations and company policies. A good handbook not only ensures a higher level of buy-in and compliance, but it may also be an important legal protection for employer and employee alike.
Creating a good handbook is one thing, but enforcing its policies can be quite another. For HR teams, it’s important to know what is and is not permitted with respect to legally executing the terms of an employee handbook.
Why Do Employee Handbooks Matter?
First, a quick refresher: Why do HR teams care so much about employee handbooks? There are a number of reasons why businesses benefit from having clearly-defined policies made available in an employee handbook.
- Clear communication helps employees understand what is expected of them, and to better comprehend their role within the organization.
- Handbooks can serve as important legal documents, keeping the organization fully compliant with relevant labor laws.
- Handbooks ensure consistency, making it so that all employees receive the same information about company policies and procedures.
- A handbook can be especially helpful during the orientation process, bringing new hires up to speed more quickly.
For these reasons and many others, it’s important not only to develop a handbook, but to ensure that its policies are consistently enforced.
What Kinds of Policies Should a Handbook Cover?
No two handbooks are exactly the same, but there are a few types of policies that are standard to cover. These include:
- Employment Policies (EEO, anti-discrimination, anti-harassment, employment classification)
- Workplace Conduct Policies (attire, attendance/punctuality, code of ethics)
- Urlaubsregelungen (sick leave, vacation leave, family medical leave)
- Performance Policies (employee reviews, disciplinary procedures)
- Conflict Resolution Policies (how to file complaints and address grievances)
What are the Legal Dimensions of Enforcing Handbook Policies?
Clearly, employee handbooks can summarize a range of important policies… the question is, what measures can HR take to implement and enforce these policies?
As HR teams think about the legal ramifications of their employee handbook, there are a few considerations to keep top-of-mind.
Begin with a Legal Review
First things first: Before you finalize and distribute your handbook, or approve of any updates to it, be sure you have it carefully reviewed by legal counsel. Your business attorney or your full legal team can verify that your handbook is completely in-line with federal, state, and local regulations.
Ensure Legal Liability Protections
The legal structure of your business can also have a major impact on handbook legality. For example, it’s important to choose a legal structure that has some built-in legal liability protection, just in case an issue with the handbook does arise. For many businesses, this means registering as a Limited Liability Company, or LLC. Doing so requires you to file Articles of Organization with your state, and to work with a Registered Agent. For an example, check out Northwest Registered Agent reviews.
Confirm Receipt from Employees
When you distribute the handbook to your employees, be sure they acknowledge receipt. This can be done with a signature page, or with some kind of digital acknowledgement. Maintain these confirmations in employee files. Should there ever be any kind of dispute, you must be ready to prove that your employees did in fact receive a clear summary of company policies.
Pair the Handbook with Training
While providing written policies is important, there may also be certain policies that call for training and employee development. Simply put, you need to ensure that employees know how to comply with the expectations you’re providing them. Training sessions can be especially important for policies that pertain to harassment or to workplace safety. From a legal standpoint, providing thorough employee training is an important way to make your policies enforceable.
Focus on Consistency
When it comes to enforcing the policies in your handbook, nothing matters more than consistency. Be sure you’re enforcing policies in the same way across departments, teams, and levels of seniority. Any sign of favoritism can not only create friction with your employees, but also undercut the legality of your handbook policies.
Keep Documentation
Every HR professional knows the value of ensuring thorough documentation. It’s important to keep comprehensive records of any disciplinary actions taken with respect to handbook policies, along with any complaints or resolutions your HR team deals with. Documentation is an important form of legal protection, and also demonstrates full adherence to your policies.
Review and Revise Your Handbook
Remember that local, state, and federal laws are subject to change. Sometimes, these changes will necessitate revision to your handbook. Make sure you review it at regular intervals and make any needed edits or additions. This is a task where it is wise to involve your legal counsel.
Outline Disciplinary Measures
What happens when an employee is found to be non-compliant with the handbook? What options are on the table for discipline or correction? To ensure a handbook that’s legally sound, you need to be clear and upfront about disciplinary mechanisms. And again, consistent enforcement is imperative.
Request Feedback
What if part of your employee handbook is unclear or seems contradictory? There may be issues that HR doesn’t spot, but other employees may have insight. Have a policy for accepting feedback for the employee feedback. Make it clear that you are always open to questions, comments, or suggestions.
For Employee Handbooks, Legal Issues Loom Large
Every company benefits from having a carefully-crafted employee handbook, created by HR in conjunction with legal counsel. As you develop your handbook, make sure you’re attentive to questions of legal enforcement, with a particular focus on consistency, clear communication, and legal liability protections. And, ensure you have a rhythm in place to review and revise your employee handbook on a regular basis.