An employee handbook is incredibly useful for someone who’s in the throes of starting at a new company. It gives them a sense of what the company’s values and culture are, plus a healthy dose of reassurance.
There’s more pressure on the employer as getting it wrong could land them in hot water. Here’s how to swerve any slip-ups and create a compliant employee handbook.
Why do I need an employee handbook?
An employee handbook clarifies policies and expectations across the business in writing, rather than relying on word of mouth, which can differ slightly from chat to chat. If you’re considering relying on contracts, know that an employee contract only stipulates rules and expectations for that employee, so it’s easier to get muddled on broader issues.
Having the same policies and expectations in writing also promotes fairness across the business. It becomes especially handy when an employee is raising a grievance. Just make sure that the wording is perfectly clear without room for interpretation.
The handbook can go into more detail about employment law, which is in a transition period due to changes from the Employment Rights Act 2025.
As mentioned in the intro, a handbook supports the onboarding process by providing ready-to-hand information for new starters.
Is an employee handbook legally binding?
Parts of the employee handbook may be legally binding if they’re also mentioned in the employment contract. Some of this material will likely be enshrined in law as well, like holiday and parental leave.
Non-contractual sections, such as work attire, are not legally binding, but the employee handbook sets the tone of what’s expected.
What core policies should be covered?
It’s wise to have these included in your employee handbook.
Recommended culture and performance policies
Though these are ‘recommended’, they are useful for staff so it’s advisable to put them in.
Staff Squared has this useful employee handbook template if you need assistance getting started. If there’s a bigger job at hand, consider contacting an employment lawyer.
How to distribute the employee handbook to staff
Businesses often send a PDF version of their employee handbook over email. If it’s a small team, you could give them individual hard copies or a larger team could access a digital version through the company intranet.
It’s important to have a way to acknowledge that employees have read and agree to the policies. This strongly applies if there is contractual, must-know information in the handbook. Confirmation could be in the form of a tick box, an email reply or a signature, be it written or digital.
How often should my employee handbook be reviewed? How should changes be communicated?
Your employee handbook should be reviewed at least once a year, though there are parts you should be going over more often. Review statutory sections such as sick pay in April (beginning of the new financial year) and October (generally when the Autumn Budget is announced).
Any information on changes should be accessible by staff. Employees must sign so that they know of any changes to contractual policies to help you to avoid breach of contract and unfair dismissal. If it’s non-contractual, you can usually make changes without consultation, but it’s good practice to let staff know anyway.
Speaking of good practice, do keep a record of all of the changes, the date they were changed and why changes were made. Finally, be aware that significant changes could require extra training to make employees aware of what they need to know.
