Why handbooks are a pain — and necessary

Resolved: Putting together a good employee handbook is a pain. But having a weak one — or none at all — could be dangerous. First, consider some statistics from the Equal Employment Opportunity Commission: Last year, complaints against employees went up by 9%, or 7,000 total, and complaints this year are on a pace to increase by 11%. And history shows that the tighter and tougher the economy gets, the more complaints get lodged.
Now, consider what weapons you have to avoid complaints. If you haven’t listed your employee handbook among the weapons, maybe you should. It could be your No. 1 preventive measure. So let’s build a checklist of what should be in your employee handbook:
Two general legal statements. Most lawyers recommend that your handbook lead off with two statements about the legality of the content. In general, they should note:
1. that all employees are employed at will, and thus, they can be terminated at any time (except in union situations), and
2. that the handbook is not intended to be an employment contract, and the employer has the right to revise any part at any time.
An “open door,” or grievance policy. There’s a difference between writing down your complaint policy and just telling employees about it. Putting the policy in a formal, written form serves at least two purposes:
1. Makes clear the exact procedure employees can use to get their complaints addressed — without calling a lawyer or the EEOC.
2. Lets everyone — including judges — that you’re committed to the process enough to write it down.
Benefits information. Leave policies, retirement plans, insurance coverage and other benefits should be listed, along with the  terms of the benefits (such as, for instance, the formula for accumulating leave). They instill loyalty in the employee and show the company as more than just a place to work. Note: Make sure the handbook gives the employer full discretion to interpret the terms of all benefits programs and determine eligibility and entitlements. And the  section should specify that if the benefit description in the handbook differs from the plan documents, the plan documents govern. This protects you from mistakes and puts more weight on a document that’s probably undergone legal analysis.
Standards of conduct. You’ll want to have a list of the types of  conduct that could subject an employee to discipline, up to and including termination. Just be sure to note that the list isn’t all-inclusive and that there can be other infractions that are subject to discipline.
Overtime. If necessary, you’ll want to note that overtime can be required when it suits business needs. And don’t forget to mention that nonexempt employees must have appropriate approvals before working overtime.
Telecommunications. State the terms under which employees can use company  phones, faxes, computers, Internet connections, etc., including those employees who work offsite.
Confidentiality. Employees should be prohibited from disclosing confidential company or co-worker information to anyone or using it for personal purposes.
Ethics. Remind employees that no one is allowed to use their position or knowledge gained through employment for personal financial gain, and they all must deal with vendors, contractors and other business contacts in a legitimate manner at all times. You may also want to detail the company’s position on outside employment and what’s considered a conflict of interest. How tight this policy is depends on the nature of your business.
Attendance and punctuality. You can lay out your attendance policies in a reasonably straightforward way, but don’t forget to include a  job-abandonment policy if an employee fails to call in  or appear for work for a certain number of consecutive work days.
Business expenses. While it is helpful to have guidelines for nature and amounts that may be spent in the pursuit of business, this policy is mentioned here for another reason entirely. It is imperative that companies set standards for the timing and nature of submitting expense reports and ensure employees know they are responsible for the accuracy and truthfulness of all such submissions. Theft via padding expense reports is a genuine concern.
Prohibitions on personal use of office equipment, telephones and supplies. A policy of this nature is actually an anti-theft measure. Costs stack up, in astonishing amounts, just from the fact that workers take pens, reams of paper and even electronics for their own use, not to mention the costs from phone bills and time taken away from work when employees make personal calls. Employees need to be informed that company property, including time, is for company use only, and this includes time spent on personal cell phones.