Most employers are surprised to learn that California does not require companies to have an employee handbook. However, the Fair Employment and Housing Act (FEHA) requires that California employers with at least five employees distribute written harassment, discrimination, and retaliation prevention policies.
Here are some tips on how to roll out a new employee handbook: Invite Your Team To Participate. Communicate Changes. Confirm Receipt. Correct, Update, and Adapt.
While an employee handbook is not legally required of employers, the lack of one can create confusion, as you note, and lead to decreased morale and potential for legal claims. With no handbook guiding them, managers are without rules to rely on.
While rare, an employee handbook can inadvertently create a contract in certain instances. Legally, the key factor in determining whether a company handbook constitutes a contract is if the employer has issued a guarantee to the employee or if the employee promises anything to the employer.
When creating an employee handbook, there are certain elements that must be included for it to be a legally binding contract between employer and employee. These include: Language stating that the agreement is mutually agreed upon by both parties. Clear definitions of expectations regarding job duties.
Small businesses can also benefit from providing their employees with an employee handbook. While they're not mandatory, a well-crafted HR handbook is a single source of information that clearly conveys company culture, practices and policies to employees.