Employee Handbook: Sections to Include [+Free Sample]

Most companies have a company handbook, which outlines the rules and regulations of their business. This document should be updated from time to time in order for it to make sense with current policies. An employee handbook is one important way to introduce changes into your workplace culture smoothly

The “free employee handbook template word” is a document that is created by the company and goes into detail about what employees should do. The document includes sections to include, such as dress code, conduct, etc.

An employee handbook is a document that outlines the rules and behaviors that are required of employees in the workplace. Employees may use it as a reference to learn about important regulations including benefits, dress code, and work schedules. Maintaining an up-to-date employee handbook ensures all workers, regardless of their boss or department, have access to the same information. Similarly, a complete handbook may assist managers in more consistently managing their personnel.

While creating an employee handbook may seem daunting at first, using a template may make the process go more smoothly and guarantee that you include all of the important elements. You may also design a handbook that meets your requirements using a specialized employee handbook builder or working with your existing HR system.

To Get Started, Download a Sample Handbook

Employee Handbook Sample (Free)

One of our in-house HR specialists prepared a free printable employee handbook example that contains rules that all organizations should consider putting in their own handbook. These portions were chosen because they apply to small company owners in all 50 US states.

Employee Handbook Template (PDF/Word/Google Doc) is available for free.

However, keep in mind that the example doesn’t include all of your company’s specific regulations. Furthermore, it may not be comprehensive enough to fulfill some state standards, such as statutory sick leave or protected classes under the Equal Employment Opportunity Act (EEO) (e.g., sexual orientation or identity). Check local rules, such as those regulating sexual harassment or commuting benefits, before finalizing your handbook to ensure that it is thorough.

Include the Following Sections in Your Employee Handbook

In their employee handbooks, company owners should include a number of parts. Make sure the handbook includes company culture as well as crucial legal papers that will protect you and your staff, such as nondisclosure agreements and rules.

Consider include the following parts in your employee handbook:

• Introduction to the Business and Its Values: Share your company’s purpose statement, why and how you were created, and insight into the company’s working culture at the start of the employee handbook.
• Nondisclosure and Noncompete Agreements: A nondisclosure agreement (NDA)—also known as a confidentiality agreement—protects a company’s private information by restricting what an employee may communicate with outsiders. A non-compete clause stops ex-employees from stealing your customers or launching a competitive company.
• Anti-Discrimination Policy: This section of an employee handbook assists you in complying with federal labor regulations aimed at preventing workplace discrimination. Use a section of your company’s employee handbook to lay out pertinent federal anti-discrimination regulations, as well as any state-specific obligations.
• At-Will Employment: Explain the notion of at-will employment in your company’s employee handbook. If your firm employs at-will personnel, either you or the employee may end the relationship at any moment and for any reason.
• Compensation and Benefits: An employee handbook is also a good location to include information about how the firm pays workers, how often they are paid, and on what day(s) of the month they are paid. Additional advantages including as flextime, commuting benefits, and health insurance may also be included in the agreement.
• General Employment Information: This section should explicitly outline a company’s probationary term (if applicable) as well as the procedures to follow if an employee wishes to resign.
• Computers and Technology Policy: Specify your rights as an employer to see electronic documents and use workplace devices such as computers in your employee handbook. This is also an ideal moment to set a password-update policy, give password-security suggestions, and define your smartphone policy.
• Leave Rules: Make sure your staff are aware of your paid time off, sick leave, parental leave, and other policies, as well as when they apply. This is also an excellent spot to include a list of corporate holidays and the policy on jury duty.
• Progressive Discipline Policy: This is a nice area for the business owner to outline the measures that will be done under the progressive discipline policy of the organization. It should also explicitly state forbidden conduct and provide a reminder that, regardless of the disciplinary policy, at-will employment remains in place.
• The employee handbook’s signature part certifies that the employee got a copy of the document, read it, and understood it. This approach encourages the employee to take it more seriously and may aid in a wrongful termination lawsuit defense. LegalZoom, for example, may assist you in drafting an employee handbook acknowledgement form.

It may also make sense to include any or all of the following components, depending on the nature of your business:

• Attendance regulations
• Procedures for refund of expenses
• Policies on alcohol, firearms, and drugs
• The dress code is:
• Guidelines for working from home

When creating an employee handbook, there are a few things to keep in mind.

Include material specific to your company’s size, location, culture, and kinds of workers in your employee handbook to keep it current. When deciding what to include in your employee handbook, keep the following points in mind:

All Workplaces Must Meet State Requirements

When deciding which parts to include in your employee handbook, keep in mind your work locations, and be sure to include applicable regulations for each state where you have workers. The following are some instances of location-specific requirements:

• Sick leave requirements: Include information in your company’s employee handbook if your city or state mandates firms to give workers with a certain amount of sick leave. California, for example, mandates that businesses give at least one hour of paid sick leave for every 30 hours worked.
• Legality of marijuana usage: Outline your company’s policy on marijuana use by workers in places where it is legal, such as Alaska, Oregon, Maine, and Colorado.
• Consider utilizing your company’s employee handbook to describe when (if ever) an employee may carry a handgun in the course of work if your state permits open or concealed carry of guns or other weapons. Arizona, Vermont, and Kansas, for example, allow open carry of weapons without a permit, and more states are enacting gun regulations every year.
• No explicit break or lunch restrictions are imposed by the Department of Labor (DOL) or the Fair Labor Standards Act (FLSA). Some states, however, have their own break time rules. California, for example, mandates workers who work more than 10 hours a day to take two 30-minute lunch breaks.

Size of the Company

Consider the amount of employees your company employs when determining which parts to include in your employee handbook. If you have 50 or more workers, for example, you must follow the Family Medical Leave Act (FMLA) and offer health insurance under the Affordable Care Act (ACA). Companies with 15 or more workers must follow the Pregnancy Discrimination Act, and you may require a maternity leave policy, depending on the size of your firm and its location.

Many state and municipal regulations also require firms of a particular size to meet specific workplace rules. In Seattle, Washington, for example, firms with 20 or more workers are required to give commuter benefits. Pregnancy benefits are required in California for workers in organizations with fewer than five employees.

Employees of various types

When determining what to put in the employee handbook, consider the sorts of employees your company employs. It’s important to think about if your company has:

• Hourly workers: If you have hourly or part-time employees, you may need to define how break, lunch, and paid time off rules apply to them. Similarly, indicate how the organization pays for overtime in the employee handbook.
• 1099 independent contractors: Clearly indicate which rules and elements of the handbook do not apply to contractors, such as medical benefits.
• Remote workers: It’s more important than ever to include information regarding remote work in your employee handbook. Consider if remote employees are eligible for any extra perks or whether they are expected to work particular hours.

Organizational Culture

The personality and environment of a company are reflected in its culture. Use the employee handbook to explain the company’s leadership style, purpose, values, and other aspects of its identity. Begin by asking the following questions when implementing your business culture into the handbook:

• Is it really necessary to have a dress code? Do you trust your staff to choose their own work clothes?
• Do you amuse your customers? Do staff get together for meals or drinks on a regular basis?
• Do you encourage people to share things on social media? Do you want to promote or prevent employees from posting about corporate news and activities on social media?
• Do work schedules make a difference? Is your company run on the basis of job performance or the number of hours spent physically on the working site?
• Do you have any reward programs? Is your company offering special incentives, such as safety incentives or rewards for customer or staff referrals?

Start with our free employee handbook example and add to it as needed after you’ve decided what parts to include in your handbook.

Costs of an Employee Handbook

Working with in-house HR personnel, a consultant, or an employment attorney specialized in employment law may all help you create an employee handbook for your organization. The expense of maintaining an employee handbook is also an annual investment, but it is worthwhile since your staff will have access to the most up-to-date tools. When developing an employee handbook, you may come into the following expenses and services:

• If you don’t have an in-house HR department, HR companies and lawyers may build a bespoke employee handbook for you. You may avoid difficulties caused by an ambiguous, inadequate, or deceptive employee handbook by employing a third-party that specializes in human resources and employee communications. You might spend up to $5,000 for this service, depending on your demands and location.
• Legal review: Legal examination of employee handbooks established by company owners or HR specialists may be beneficial. This sort of audit may verify adherence to applicable labor regulations and safeguard company owners in the event of an employee lawsuit. An attorney, on the other hand, may charge hundreds of dollars per hour, particularly in a huge market. If you don’t want to employ an attorney, LegalZoom offers packages that make creating a handbook as simple as completing a few questions. LegalZoom’s Business Advisory Plan begins at $31.25 per month, and its experts may also check papers for compliance.
• Maintenance: After developing an employee handbook, set aside time each year to update it to reflect current policies and regulatory needs. Then, have your lawyer go over the new version, and arrange staff training to ensure that everyone is on the same page. Again, if you don’t want to pay legal costs, try signing up for a monthly subscription like LegalZoom’s.

Where Can I Purchase an Employee Handbook?

Consider if you’re currently dealing with a source that can give you with an employee handbook example, such as our template above, before starting from scratch.

Software for Human Resources

A example employee handbook is included in many human resource information system (HRIS) software packages. Zenefits users, for example, get access to a sample employee handbook template that its experts can help you personalize. Consider trying out a free Zenefits demo if you don’t currently have HR software.

Payroll Processing

Many payroll firms provide an employee handbook example as an add-on service to help their clients’ HR requirements. However, not all payroll systems contain HR capabilities, so ask your payroll service provider whether handbook templates are available—or if employee handbook support is included with a service before you sign up.

Employer Organization for Professionals

A professional employer organization (PEO) is an outsourced HR service that works with companies to handle the back end of HR functions such as payroll, benefits, and resources, including employee handbooks. While a PEO is more expensive than HR software or a payroll provider, it is a good alternative for company owners who are concerned about employee and HR compliance. Its experts will not only assist you in putting up the handbook, but will also provide legal advice on policy issues.

Justworks is one of the most cost-effective PEOs, with monthly rates ranging from $39 to $99 per employee, depending on the size of your company. To get started, get a free Justworks demo.

Consultant in Human Resources

A human resources expert or an outsourced HR agency may assist you in writing or revising your handbook policies, as well as reviewing the final version. HR consulting businesses might charge anywhere from $95 and $200 per hour, with an average of $142. Some consultants may provide flat-rate services for a few thousand dollars, such as creating an employee handbook. However, you can often discover freelancers with HR experience that can assist you create your employee handbook at a reduced cost.

Builders of employee handbooks

Consider using a specialized employee handbook-building tool if you don’t want to engage with an HR or payroll supplier.

The Society for Human Resource Management (SHRM) is a non-profit organization dedicated to (SHRM)

If you’re in charge of a one-person HR department, joining SHRM may be beneficial. SHRM delivers free downloadable HR policies, templates, and resources as the industry leader in HR best practices. For $350, you may use the SHRM Employee Handbook Builder to create a personalized handbook for each state where you have workers.

AirMason

AirMason is a tool for creating, maintaining, and managing employee handbooks. It allows you to build many handbooks and access them from any computer or mobile device. The Startup plan, which covers organizations with one to 99 workers, begins at $62.42 per month (when invoiced yearly). The Small Business plan, which costs $83.25 per month, is designed for companies with 100 to 199 workers. For bigger businesses, custom pricing is available. To explore whether AirMason is a suitable match for your company, sign up for a free seven-day trial or schedule a demo.

Handbooks

Small company owners may use Handbooks to develop a complete employee handbook that contains up-to-date and HR-approved text. The tool may be used in all 50 states and saved as a Word document. Users may pick between a free edition that contains a basic manual with 16 pages of the most important regulations and a $19.95 version that covers everything. The advanced package includes 28 pages of rules, procedures, and standards, as well as an additional handbook for independent contractors.

Conclusion

Employee handbooks are an essential means for business owners to protect themselves while also ensuring that their workers are aware of the company’s culture, employment requirements, and current regulations. Answering inquiries from workers may save you time, money, and hassles if you have a decent handbook. Furthermore, in the event of a wrongful termination litigation, a well-written handbook might be used as a defense.

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