Employee handbook
Also known as: staff handbook, company handbook, employee manual
An employee handbook is the canonical document that describes a company's policies, employment terms, and behavioral expectations. It functions both as a reference for employees and as legal evidence that policies were communicated.
Most small companies skip the employee handbook until something goes wrong — a misconduct complaint, a vacation dispute, an unexpected exit — and then realize they have nothing in writing to fall back on. A handbook does two jobs: it tells employees what to expect, and it gives the company a defensible position in disputes. The hard part is keeping it current; the value is in the version control.
What it typically contains
- Company overview, values, and code of conduct
- Employment terms (working hours, probation, classification)
- Compensation and benefits summary
- Time off policies (annual leave, sick leave, parental leave)
- Performance management and review cadence
- Remote work / hybrid work policy
- Equipment and IT acceptable-use
- Anti-harassment and grievance procedures
- Privacy and data protection notice
- Offboarding procedures
Handbook vs employment contract
The contract sets individual terms (salary, role, term length). The handbook documents policies that apply company-wide and are subject to change with reasonable notice. Most jurisdictions treat the handbook as binding once communicated, so changing it without notice (or worse, retroactively) can create legal exposure.