Employment Musts: The value of an Employment Handbook

Authors: Ann Bugeja & Christine Borg Millo

What is an Employment Handbook and why is it used?

An Employment handbook is a manual for all employees in a business entity, company or firm, as it lays the very foundations of their basic entitlements and company standards which local employment law grants them.

As opposed to an employment contract, the handbook is intended to apply generally to all employees who work in a business entity as it is tailormade to the needs of that particular corporate entity. Since it contents apply to all employees, it is quite typical that certain clauses in employment contracts specify more detailed particulars, terms and benefits applicable to that certain employee in comparison to the generally drafted handbook. In fact, many handbooks would possess a supremacy clause wherein it would state that the terms of the employment contract would supersede the contents of the handbook.

As a working manual, a handbook is drafted using more straight forward language, making it practical for all employees to easily denote and understand their entitlements by virtue of the handbook. Yet, it is still important that, when applicable, all legal conditions stipulated in the handbook are based on provisions which stem from local employment legislation so that all employment conditions of employees are adequately covered. The content of other related human management provisions which are not covered by employment laws, relating to, for instance, appearance and dress codes, company benefits such as health insurance and travel allowances, performance reviews and the like, are at the discretion of the company.

The handbook is mainly used as a reference tool, therefore the organisation and proper structuring of the contents of the document in various sections display a good-reference point for its readers and users. The sub-headings would be drafted in such a way that it essentially easy for employees (and their employers) to access the required information quickly and efficiently.

The contents of the Handbook

It is generally the case that the handbook would begin by providing an overall explanation of the company values and principles, before delving into the information regarding employment conditions and company procedures which are in place and which would apply to the employees.

The employment conditions typically included would be, among others, rules on working hours and requesting time off, provisions (if any) regarding overtime, whether leave can be carried over to the following year and the various forms of leave entitlement. Moreover, the procedure with respect to sickness and obtaining of medical certificates, company policy on shut down and forced leave and a list of public and national holidays would also be provided. In this way, there is no room for the need of clarification by the employer, as all rules would be clearly specified in the handbook, which may be amended from time to time. Thirdly, it would also include detailed clauses regarding salaries, their revision and related matters, including the period within which wages are paid and any deductions which are due in terms of law.

A valuable section in the handbook is terms which discuss circumstances of termination of employment, such as reaching retirement age, providing of notice periods, and the issuing of charge letters and/or warning letters in the case of serious grievances which have occurred at the place at work. Here, it is also common to include provisions relating to discipline, behaviour and employee conduct, and procedures which the company puts into place to manage wrongful conduct.

Other examples of what rules the handbook normally caters for include, but are not limited to the following:

• Expenses policy; for the reimbursement of expenses like travel, accommodation ad hospitality;
• Anti-corruption and bribery policy; ensuring a zero-tolerance approach towards bribery and corruption at the work place with all business dealings and relationships;
• Anti-harassment, victimisation and bullying policy; eliminating the possibility of any cases of bullying, victimisation and harassment from arising;
• Record-keeping and maintaining of employee information;
• Disciplinary procedures and grievance procedures;
• Whistleblowing policy to guarantee a ‘speak-up’ mentality by all employees;
• Training and performance review policy;
• Health and Safety rules at the place of work (especially in industries where certain employees do not have a fixed place of work or work around travel schedules);
• IT and communications systems policy; and
• Rules regarding the use of social media.

Conclusion

The handbook should be reviewed periodically, to ensure that its provisions continue to meet the legal obligations and reflect best practice of the company and its staff members. Employees at a managerial level have a specific responsibility to operate in accordance with the provisions set out in the handbook and moreover to set an appropriate standard of behaviour by leading by example and adhering to all rules inscribed by the handbook. Conversely, the employees must be fully aware of the policies and procedures in place and possess a duty to familiarise themselves with its contents and comply with it at all times. A failure to comply with the handbook may result in disciplinary action to be taken by the company.