All the essentials: employee handbook template

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Your employee handbook outlines your culture, mission, policies, and expectations—essentially everything that makes you, you. 

Companies of all sizes benefit from a well-written, structured handbook. Your people can use your employee handbook to understand and align with your company values and procedures.

With this in mind, we’ve drawn up an outline for the ultimate employee handbook template. You can follow this structure as a basic blueprint to make your own document. 

What is an employee handbook? 

HR leaders create and regularly update comprehensive employee handbooks: Documents detailing a company’s policies, procedures, and expectations. Handbooks can help organize, guide, and inspire goal-driven company activities. 

You might give your new joiner a physical or digital copy of the employee handbook during onboarding, so that they can review key details, and follow up with questions.

New and seasoned team members can use the handbook on an ongoing basis to keep details like leave policies, code of conduct, company culture, and review processes top of mind. 

Why do you need an employee handbook? 

A handbook serves as a guiding light and helpful reference point so that the team knows which behaviors are acceptable and which are not. Company leaders can organize company policies, procedures, and expectations in a written document to help define the company culture.  

Managers can refer to the employee handbook to build out strategic team plans and move toward overarching company goals. 

<Download a free employee handbook template.>>

What to include in an employee handbook

We’ve split our sample employee handbook template into eight different sections:

• Introduction
• Employment essentials
• Policies and conditions
• Code of conduct
• Compensation and continuing development
• Benefits and perks
• Paid time off and holidays
• Employee resignation and termination

Each section is just as important as the last. They include vital information for team members and act as the comprehensive go-to guide for new joiners.

1. Employee handbook introduction

Your introduction can give the new hire a brief overview of what will be in the handbook and include a short welcome paragraph. Share your mission statement, your value statement, and a brief history of the company. 

This may be the first official experience a new joiner has with your company. This introduction acts as a first impression—and we all know how important first impressions can be.

If you have a digital handbook, you can add a video to introduce the document. This way, your team members can put faces to names, and get a feel for the general atmosphere of the working environment. This helps engage team members—especially remote and hybrid colleagues who won’t physically immerse themselves in your company culture. 

2. Employment essentials

This is an in-depth, highly informative section that helps establish the basic definitions related to the company. It acts as a basic FAQ section for whenever a new or existing team member has a question. 

Your employment essentials section can include:

Employment contract terms

Outline the basic terms and conditions of the employee contract. You can define the difference between your full-time and part-time employees, as well as other types of employment your company offers. 

Attendance terms

HR leaders can use a handbook to create essential clarity around attendance policies. The attendance policy outlines core procedures like how team members call in sick or how they can officially file for paid or unpaid time off. You may also include the exceptions for an unreported absence. 

Company processes

Include all of the company’s vital processes, such as how the business handles performance reviews, how meetings are set up for remote and hybrid workers, and how you go about setting individual and team goals. 

This section can also detail the communication avenues your business uses—whether an instant messaging service or email—as well as the proper way to set OOO (out-of-office) or send WFH (work-from-home) messages. 

Company values

In this section, you can lay out the basic expectations you have for the work environment and your values surrounding teamwork. Give a clear indication of the company culture each person is expected to uphold. 

3. Company policies and conditions

This section highlights what sort of workplace your company is building. It describes the conditions your people will be working in and covers internal policies.

The policies and conditions section usually includes:

Physical health and safety

This section provides your teams with everything they need to know in order to stay safe in the case of an emergency. It includes your fire drill policies, regulations on a smoke-free and drug-free workplace, and steps to take if an injury occurs at work. 

Mental health and safety 

This section outlines your company’s policy for maintaining the mental health and safety of its team members. It includes how to take sick leave for mental health reasons, what measures the company has in place to protect the mental health of its people, and how to access emergency mental health resources. 

Hybrid and remote working policies 

Hybrid and remote work is a significant part of today’s work landscape, with 54 percent of employees working in a hybrid format and 27 percent working remotely. According to Gallup, companies will maintain these flexible work policies, so you can use this section to cover guidelines relating to remote and hybrid workers, including communication avenues, remote monitoring, and virtual team-building opportunities.

Confidentiality and data protection

Companies have access to a large amount of personal information about team members. Organizations can help their team members feel more comfortable about sharing this information by explaining how their data is protected. This helps to build a strong culture of trust between team members and the company. 

Many companies will also be privy to a lot of customer information. This section can also highlight how team members can keep their customer data secure. Everyone is responsible for data security, and companies benefit by educating team members on properly handling and protecting all data they access.

4. Code of conduct

Your code of conduct outlines expected workplace behavior. Providing a clear moral compass helps create a safe and comfortable environment for everyone.

The code of conduct section includes: 

Equal opportunities

Employee handbooks often include a statement about equal opportunities. For example, companies in the United States may include an Equal Employment Opportunity Commission (EEOC) statement. HR leaders can also add details on their organization’s DEI&B (diversity, equity, inclusion, & belonging) initiatives.

Harassment, violence, and discrimination

Feeling safe and content contributes to a happy and productive workplace. In this section, you can include your policies on forms of harassment, violence, or threatening behavior in the workplace.

Define exactly what constitutes each of these behaviors and describe the repercussions. Include clear steps for reporting concerns, such as who to contact and how to reach them.

Conflict of interest and solicitation

The rules surrounding a conflict of interest or solicitation may not always be clear. Clarify what constitutes a conflict of interest or solicitation and the consequences of violating these policies.

Reporting a breach

This section outlines how to report a breach of the code of conduct. Highlight that reporting is confidential and there aren’t negative consequences for reporting a breach.

5. Compensation

This part of the employee handbook can cover salary, bonuses, and other forms of compensation. 

Payroll 

This section reviews how and when team members are paid, overtime rules, deductions, and advancements. Provide a detailed schedule of paydays to empower team members to accurately plan their finances and cover expense reimbursement processes. Explain the legality behind each section to help reduce confusion.

Bonuses and equity

Outline your bonus program, whether it’s a yearly bonus, a quarterly bonus, or commission-based bonuses. If your company offers equity, you can include how equity is distributed and vested.

Pension and retirement

Clearly communicate the eligibility criteria for pension and retirement benefits and explain company contributions and matches in detail. For example, in the United States, many companies match a portion of team member 401(k) contributions. 

If your company offers various options, outline each available plan. Provide how-tos so that new joiners know how to access and manage these funds and benefits.

6. Benefits and perks

Many companies provide their people with a range of benefits and perks. This is a great way to show appreciation for your people and support retention efforts. 

Your benefits and perks section can cover: 

Support for employee wellbeing 

This section covers anything from discounts for local gym memberships, a recommended and discounted psychiatrist or therapist, or a home office stipend. 

Learning and development

Continued learning and development is an important part of a business’s retention strategy. It helps team members visualize their future path at the company and paves the way for exciting opportunities to grow their skills.

Discuss what training your company offers, recommended conferences for specific teams to attend, and if you provide a stipend for work-related seminars. 

Insurance

This section includes a detailed description of what is and isn’t covered by the company’s insurance. Insurance options might include health insurance, life insurance, dental insurance, and others.

Company car and parking

You may offer a company car as a benefit if your team members are often on the road. Outline the criteria for the car and whether you’re covering a portion or the full value. 

For team members who work in person at the office, state whether or not you offer free parking. 

Expenses

Some companies offer to cover work-related expenses, such as restaurant bills from work-related meals or gas for the company car. Detail which expenses are covered and which aren’t. 

7. Paid time off and other leave

Holidays are a great way for your team members to take a well-deserved break. It’s important to encourage team members to have a good work-life balance and take the time to maintain their mental health, which you can highlight in this section. You can also include a detailed outline of the official holidays your team members benefit from, as well as how the accrual of paid time off works. 

Your paid time off and holidays section includes:

Paid time off (PTO) and unpaid time off

Outline how your paid time off and unpaid time off work, including how much time you offer and how to request time off. Cover policies for all team members, including contractors, hourly employees, and interns.

Sick leave

Sick leave gives team members time to recover from illness or act as a caregiver to a sick family member. Sick leave requirements can vary by jurisdiction, so it’s helpful to check local laws to stay compliant. 

Holidays

Different countries observe different holidays, which can be confusing for global teams. Outline the holidays your company observes in each country where you have team members.

Compassionate leave

Companies may offer paid compassionate leave when team members lose a loved one or receive bad news. Compassionate leave gives team members time to be with their family, sort out difficult details, and prioritize self-care without the stress of maintaining work responsibilities at the same time. 

Parental leave

In this section, state how much leave you provide team members who are having or adopting a child. You can also include if you offer flexible hours for parents who have to pick their children up from school or have other parental duties. In some countries or states, providing parental leave is a legal requirement for employers.

8. Employee resignation and termination

Sometimes a person or a company isn’t the right fit. In that case, you’ll want to ensure the leaver understands the resignation or termination processes.

This section covers:

Resignation

Each company will have its own resignation policies and processes. Clearly detail these policies so that all parties know what to expect when a team member hands in their notice of resignation. In this section, include information about exit interviews, which can provide useful insights about the team member’s experience at your company. 

<<Download a free exit interview template.>>

Notice periods

When a person hands in their resignation, communicate a clear minimum notice period set out by the company so they have time to prepare a replacement. This section outlines the notice periods for both the leaver and the company. 

It’s also important to note that notice period policies tend to vary from country to country. So, if your company has different locations, detail which policies apply to each location.

Contract termination

Here, outline your policies regarding termination along with the compensations and severance pay you offer.

9. Disclaimers and employee acknowledgment

In this section, new joiners will sign to confirm receipt and understanding of the handbook. The acknowledgment and disclaimers section generally includes specifications of at-will employment and a statement that the employee handbook does not act as a sole contract.

HR and legal teams can also include additional legal policies and information, like a non-disclosure agreement.

Employee handbook best practices

Once you’ve created a strong draft of your employee handbook, keep these best practices in mind: 

1. Follow a template

Follow and customize a high-quality employee handbook template so you can cover your organization’s goals, expectations, and culture. A template simplifies the process and ensures consistency. 

<<Download your free employee handbook template.>>

2. Make it customizable and easy to update 

Whether you distribute the employee handbook using physical or digital copies, make sure you keep each version securely saved in an editable format. This way, if expectations change or goals shift, HR leaders can make updates without starting from scratch. 

3. Consult with legal professionals 

While the handbook is separate from a contract of employment, HR teams can still consult with legal professionals before distribution. Check if certain areas require sensitive wording or legal updates to maintain compliance.

4. Share it early during employee onboarding 

While the entire onboarding process can span over weeks, you can share the employee handbook on day one (or even during preboarding). 

New joiners can review the handbook from the start and familiarize themselves with company policies. The sooner team members can access this information, the sooner they can integrate and contribute to their team.

5. Keep it accessible 

Keep the wording in your employee handbook as accessible as possible so all new joiners can easily understand expectations. Managers can also set reminders for themselves to follow up with new team members and answer questions they may have after reading the handbook. 

You can also take steps to make the handbook physically accessible to all your people, either by printing team copies to keep in a central location, providing hard copies for each team member, or sending a digital copy. 

<<Create your customized employee handbook by downloading the free template.>>

Great employee handbook examples

A great employee handbook delivers the voice, purpose, and vision of your company while emphasizing the important role that  each team member plays. Your company handbook will look different from other company handbooks because it will reflect the personality of your business and the tone of your company culture. 

Instead of taking a one-size-fits-all approach, these companies created impressive handbooks that empower their team members:

The Patagonia handbook places the company’s mission center stage and begins with facts about climate change. Grounding all team members in a central mission lays a strong foundation for cohesion and a culture of teamwork. 
The Netflix handbook emphasizes the power of each individual within an organization. Netflix highlights nine desirable behaviors and skills, with a strong emphasis on personal responsibility and high performance.

Download your free employee handbook template

New joiners rely on having a comprehensive employee handbook to streamline their transition into working for a new company with new rules and responsibilities. When everything’s in writing, there’s little room for confusion. Your teams can fully immerse themselves in the company’s culture and have a handy go-to guide for when questions inevitably arise. 

Using this sample employee handbook template, you can build your own handbook filled with useful nuggets of information and your company’s personality.

<<Download the template to create your customized employee handbook.>>

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