Written Employee Policies Offer Valuable Benefits

In order to maintain a consistent, and legal, approach to how you handle employee issues, the safe way to proceed is to have a formal written employee policy. A written policy also has the additional benefit of avoiding having to negotiate each...


The company’s procedures for reviewing employee performance and adjusting salaries and wages should be explained in some detail here. It’s important to indicate the timing of reviews so that employees know what to expect. Though it may seem obvious, it should be pointed out that “each employee will be paid according to their contribution to the company relative to all other employees.”

In this section, you should also cover what happens when an employee leaves the company or when a previously employed person returns to the company.

4.00 Time Off From Work

The company should address each of the following:

• Holidays

• Vacations

• Sick Leave

• Weather

• Any other type of leave (Maternity, Military, etc.)

5.00 Personal Conduct

This area is probably one of the most important and sensitive areas that you will cover in your employee policy. It is here that you define your expectations regarding how you expect employees to act and react to circumstances that can affect how your company is perceived by its customers. This might cover:

• Personal business

• Alcohol and illegal drugs

• Smoking and tobacco

• Job site conduct

• Grounds for dismissal

• Sexual harassment

• Gratuities from suppliers

• Contributions and

solicitations

• Employee use of company assets

• Employee purchases

6.00 Employee Benefits

There may be many areas of benefits that should be described here briefly, with detailed descriptions contained in more complete plan documents for such things as the company’s group health program and any savings and retirement plans.

You might also want to include in the basic policy such miscellaneous benefits as educational allowances. At the end of the policy document, make sure there is a provision for the employee to acknowledge that he or she has received, read and understood the policies set forth in the document.

The above description is not an exhaustive recipe for developing an employee policy but rather a place to begin. It is important that you do this carefully and consult with the appropriate professionals to ensure the policy conforms to various legal requirements that impact employer/employee relations. Having a formal, written employee policy, however, is the best way to avoid conflicts and misunderstandings as your business grows.