Why Employee Handbook is important for Employee?

What is an employee handbook?

An employee handbook is the most important document for any new employee in a Company. It provides the employee an insight of the Company, its dealings, various policies, expected code of conduct, expectation of the Company from its employees etc. It is generally given to all the new employees on the first day of their job or along with the Employment Contract. This handbook is not a substitute of an Employment Contract which is to be separately entered with each employee.

Importance of employee handbook

The handbook may vary depending upon the business requirements of the company as well as any specific kind of business but the general areas that an employee handbook may address are:

• Brief history of the company


• An introduction stating why such handbook is needed


• Terms and conditions of employment


• Holiday entitlement


• Code of conduct


• Company rules


• Conflict of interest


• Confidentiality


• Grievance procedures


• General policies etc.

Code of conduct

The employee handbook lays down the code of conduct expected of all its employees when dealing with each other, the management, its agents, customers and so on. An Employee Handbook is designed to introduce and familiarise the employees of the Company with its policies, rules and regulations and the terms and conditions of employment.

Information on important aspects

An employee handbook addresses the concerns and the questions of the employees. Employee handbook provides the info to the employees on the important aspects. Employee handbook helps the employees to know what the company expects from them , and in return what they will get the benefits. Employee handbook provides the clear information on working hours, dress, leaves, termination, disciplinary procedure, health and safety obligations, compensation policy.

Right of amendment

The employee handbook sets out the various benefits that the company offers to its employees along with various policies and procedures. An employee handbook is called often staff manual. It is the best communication tool between employer and employee. The company has right to amend, delete, suspend any right but it cannot deprived the employee from their constitutional rights. Any amendment to the employee handbook must be issued by a circular from time to time as and when required.

Review of employee handbook

Employee handbook must be reviewed after the changes in law. It is the duty of the employer to provide the latest copy of the employee handbook after the reviewing it.

Reasonable and fair

Employer must adopt and introduce such polices which are reasonable and fair. Employer cannot deprive the employees form their statutory rights. In case of conflicts between employee handbook and statutory rights, then the statue will prevail over the employee handbook.

Promote equal employment policy

An employee handbook must missies the discrimination and promote the equal employment policy . Employer before implementing the employee handbook must consider the federal and all local employment laws.

Employee handbook always promotes the :

• Healthy atmosphere  within the organisation;


• Minimises the disputes and concerns

Part of employment contract

The provisions set out in the employee handbook must be read along with the terms and conditions of employment contract and shall form a part of the employment contract.  Any amendment to the employee handbook must be issued by a circular from time to time as and when required.

Net Lawman provides the comprehensive and up to date employee handbook. Such as

Employee handbook

You may want every aspect of working relationship with your employees in the form a policy document substantially circulated for the knowledge of every person working for the organization. We have provided a model Employment Policy manual which highlights the Policies that govern Employment and reflect management’s working style and culture of an organization.