Use an employee handbook to communicate workplace policies, but don't make any promises you don't intend to keep.

If you have more than a few employees, it's a good idea to create an employee handbook that clearly explains your workplace policies. The benefits of having an employee handbook are many: Every employee receives the same information about the rules of the workplace; your employees will know what you expect from them (and what they can expect from you); and you'll buy yourself valuable legal protection if an employee later challenges you in court.

What Goes in an Employee Handbook

Here are topics to consider including in an employee handbook.

Introduction. Begin the handbook by describing your company's history and business philosophy.

Hours. State the normal working hours for full-time employees, rules for part-time employees, and how overtime compensation can be authorized for those entitled to it.

Pay and salaries. Be clear on how you set pay and salaries and how you raise them. Also explain any bonus programs.

Benefits. Explain the rules relating to benefits, including vacation pay, sick pay, unpaid leave, health benefits, other insurance benefits, and retirement benefits.

Drug and alcohol abuse. Many businesses have a policy prohibiting employees from using drugs or alcohol in the workplace. Some also offer to help employees deal with substance abuse through counseling or employee assistance programs. Include this information in your handbook

Sexual harassment. Use your handbook to remind employees that sexual harassment is illegal and violates your policies. Let them know that you will not tolerate unwelcome sexual comments or conduct and that you will treat any complaints of harassment seriously. Specify how and to whom an employee can complain of sexual harassment, what procedures you will follow to investigate complaints, and what actions will be taken against harassers. .