The Employee Handbook - A Knol By Sreekrishnan Narayanan
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- Words: 3,984
- Pages: 12
17/08/09
The Employee Handbook - a knol…
The Employee Handbook An effective communication tool for human resources management Having associated with Insurance employees' trade Union movement for more than a decade in India, the Author of this Knol is a staunch supporter of ethics in human resources management. He was member of the Standing Committee (General Insurance) and the Working Committee of the All India Insurance Employees' Association and also the Regional Secretary of Tamil Nadu General Insurance Employees' Association, based at Coimbatore, India. Contents Introduction Advantages Recommended Contents more
Introduction It was several decades after the industrial revolution that the requirement of a strategic and coherent approach to effectively handle the most precious resource of any commercial enterprise – the human resource – was realized to be an essential ingredient for the success of the business organisation. Several modern management techniques were tried and tested until the concept of Human Resources management largely replaced the term personnel management, as an evolutionary process. One of the changes brought within the employer-employee relationship during the course of this evolution has been the emphasis on transparency. Most organisations now consider the need to be more transparent in their ongoing relationship with their human resources except to the extent of absolute confidentiality becoming inevitable. As a natural corollary, policies and standards were sought to be declared, formulated, documented, published and distributed within the enterprise. One such important document evolved in the process is the Employee Handbook which is a written-down documentation describing in brief or at length, the policies and standards relevant to the employment practice adopted by the organisation, facilitating mutual understanding of the rights and obligations of the parties to the contract of employment. knol.google.com/k/…/6
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Though Employee Handbook is not purported to be the legal document authenticating the contractual relationship between the employer and the employee, the contents therein can be relied upon as substantive evidence against allegations of unhealthy labour practices such as workplace harassment or discrimination.
Advantages The availability of a periodically updated and properly written Employee Handbook has several advantages from the points of view of both the employer and the employees. Some of these are listed below: 1. It facilitates the employer to ensure ongoing communication with the employees, by providing a consolidated version of work-related information, clearly spelling out what the employees can expect from the employers and what is expected of the employees 2. It goes a long way in establishing the employer’s commitment to consistent, fair and dispassionate approach to the management of human resources 3. The Handbook being made available to all cross sections of employees, helps minimize disputes and promote harmony within the organisation apart from saving the attendant costs of possible escalation of avoidable issues 4. It helps decentralization of human resources management to the level of immediate supervisors, facilitating free flow of decision-making on routine matters 5. A well-drafted Handbook also plays an effective role in redressing employee grievances, the common factor engendering disgruntled employees and quite often bursting into major labour disturbances 6. In many countries, the statutory requirement of ensuring fair treatment of employees and good labour practices is sought to be achieved by effective human resources management practices including distribution of the Employee Handbook 7. An organisation that consistently pursues a policy of keeping the Employee Handbook updated and circulated or distributed among the employees stands a good chance of defending its position against legal actions for alleged workplace harassment or discrimination that are common these days. 8. For new recruits, Employee Handbook is very helpful in engendering a sense of belonging to the organisation apart from playing a positive role in inculcating the best industry/workplace culture in them and raising their level of confidence 9. It even helps the immediate family members of employees meeting with work-related accidents in determining the available recourses to them upon such eventualities and/or contingencies 10. The Employee Handbook also enhances the employer’s image in the labour market and helps attracting talents with ease
Who should initiate? knol.google.com/k/…/6
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Given the impact that a well-drafted Employee Handbook will create among the stake-holders, it is always recommended that the highest decision-making executive of the organisation shall initiate the process of putting it in motion, and play an active role in supervising, reviewing, recommending and ensuring that it is regularly updated; it sufficiently reflects the employer’s agenda; and it is well-received and serves the objectives optimally. Though dedicated Human Resources personnel may be assigned with the relevant tasks and responsibilities, the executivecontrol over the entire process is a sine-qua-non.
Does the Handbook serve as a Personnel Manual? It should be remembered that the Employee Handbook is not always exhaustive and comprehensive. It is also not meant to replace a Personnel Manual that contains more comprehensive and exhaustive information and procedures pertaining to different aspects of employment. Generally, the Employee Handbook is, at best, a guiding document that may refer to more exhaustive sources for detailed information on any particular issue or subject dealt with. There is no hard and fast rule that imposes documentation of an exhaustive and comprehensive allpurpose Employee Handbook that handles all aspects of Human Resources management in the organisation.
Recommended Contents The following contents are recommended for incorporation into the Employee Handbook in order to achieve the objectives outlined. Care must be taken to ensure that none of the provisions contained in the Handbook is in contravention of any local or federal statute.
Preamble It is a good practice to incorporate in the Employee Handbook a suitable Preamble in the nature of a disclaimer intended to avoid misinterpretations. The Preamble should be descriptive in nature, emphasizing that the Employee Handbook is intended to provide a summary of the current employment policies, procedures and practice followed in the organisation for information, guidance and reference purposes. Since the Employee Handbook may not contain certain terms, procedures or other aspects specific to the nature of any particular job or category of jobs, it is always advisable to make it clear in the Preamble that in the event of any provision contained in the Employee Handbook is not in conformity with or is contrary to anything contained in the individual contract of employment or a more detailed Personnel Manual or any internal Memorandum circulated among the employees amending any existing provision, the provisions contained in such contract knol.google.com/k/…/6
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of employment, Personnel Manual or Memorandum respectively shall prevail to the limited extent of such variance. The Preamble may also express the privilege vested in the employer to amend any provision contained in the Handbook including discontinuation of any benefits, policies, procedures or other terms and conditions of service as may be necessitated from time-to-time; and also assure that all efforts may be made to notify the employee concerned in such cases, either individually or collectively, by means of appropriate communication channels including internal Memorandum or publication in the Intranet website of the organisation. In order to ensure consistency and credibility to the Employee Handbook, the organisation shall have proper procedure in place to incorporate these amendments in the Handbook from timeto-time.
Table of Contents A good Handbook will contain a Table of Contents (TOC) facilitating the employees to easily browse the appropriate provisions that they are looking for. The TOC is recommended to be as simple and clear as possible with page numbers furnished even for sub-titles for easy location within the Handbook.
Foreword The Handbook being a document intended for distribution among the employees including new recruits, a Foreword from the Chief Executive Officer will add value to the document apart from making it appear more credible and authenticated. The Foreword may begin with welcoming the employee into the organisation. It may contain a summary about the organisation in general with specific references to the local office and its operations. It is a good practice to convey the Mission, Vision and Core Value Statements and Operating principles of the organisation through the Handbook. It may also elucidate on the prospects for career growth within the organisation and formally introduce the employee to the Human Resources department of the organisation.
Induction and Training If the organisation has any specific orientation or induction and training programme, furnish details thereof specifying the objectives of each such session. It is also a good practice to stipulate a time-frame within which the programme is expected to be completed by new employees. knol.google.com/k/…/6
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The Human Resources department should be assigned with the task of continually monitoring and updating the orientation or induction and training programme contents, depending on the functional and job responsibilities of the employees. A good homework with ideally a check-list to be maintained by the HR department will be helpful. Apart from the induction training, it is always advisable to schedule ongoing training sessions periodically covering all categories of employees to keep them updated with new technologies and skills. To encourage participation, it is a good idea to make it part of the Appraisal process. Information on such ongoing training sessions, if offered, may also be furnished in the Handbook with details of subjects dealt with, periodicity, participation criteria, etc.
General conditions of service The Handbook may also contain information about general conditions of service of the employees and information on topics of interest to employees with particular reference to the following:-
Work Permit If statutory requirements stipulate employers to seek Work Permits for certain categories of employees, it shall be appropriate to provide information about the procedure to be followed to obtain such permits and information or documentation expected from the employee in connection therewith (Examples: Photographs, copy of Passport, etc.). Usually, the Human Resources department maintains validity details of such work permits and alert employees sufficiently in advance for renewal thereof. However, it is a good idea to shift the onus on the employees by asking them to notify their Human Resources or Facilities Manager for renewal of their work permit at least one month in advance of its expiry date.
Probation The period of probation, if any, applicable to new employees joining the organisation may be furnished in the Handbook with procedure and consequences of the evaluating process during this period. This section should also cover information on issues likely to raise doubts in their minds such as eligibility for leave during the period of probation.
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Working Hours The regular working hours of the organisation may be stipulated with clarity on specific period, if any, allowed for tea or lunch recess. If there are regular changes in working hours during any specific period of time (example, during the holy month of Ramadan in the Middle East region or Islamic countries), details thereof may also be specified. Similarly, if specific categories of employees are exempted from the usual working hours or are expected to follow different working hours, mention about such deviations may also be made. It is not unusual to add a proviso asserting the employer’s right to require employees to put in additional hours of work to meet unforeseen deadlines or emergencies. However, it is advisable to mention about the employer’s obligation as well, to abide by the industry practice or statutory requirement, where applicable (Example: Payment for overtime work). A trend has emerged in the modern corporate world whereby employees are permitted to work from home, depending on the nature of the work and factors concerning feasibility of such option. If applicable, a mention thereabout is recommended.
Workplace Resources Though it is a general practice followed by organisations with dedicated HR departments to provide for Furniture, Stationery, Computer and peripherals to new recruits either at the time of their entry or within a reasonable time thereafter, some companies may expect employees to furnish prescribed requisition forms for being provided with these resources. It is advisable to mention about such requirements, if any, in the Handbook itself, preferably with the prescribed form, if applicable, as annexure thereto. The Handbook may also provide for handing over or requisitioning work resources and the procedure to be followed in the event of internal transfers within the organisation. Workplace resources may include provision of Stationery, Furniture, Computer and Accessories, Landline and/or Mobile Phone instrument, Punch or Proximity Cards for Office entry or exit, allotment of parking space for private vehicles, logon credentials for accessing the organisation’s local area network, access to the organisation’s Intranet, Email system, etc.
Recovery and Reimbursements Some organisations allow their employees to use personal devices such as Mobile Phones owned by the organisations themselves, for personal use and recover proportionate usage charges from these employees. Similarly, charges for international private calls made from the knol.google.com/k/…/6
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landline phones are also recovered. On the other hand, official expenses incurred by employees from their personal devices such as telephone rental and call charges, internet rental and usage charges, etc., are reimbursed by the organisation. The policy of the organisation in respect of the above scenarios and the procedure to be followed in these cases may be furnished in the Handbook.
Dress Code Expectation of the organisation as to the dress code to be followed by different categories of employees during given periods of time may be furnished in the Handbook. Some organisations may insist certain dress code to be followed only on certain situations such as use of full suit and tie while attending Client meetings, etc. There may also be exemptions from dress code during certain days of the week. In some cases, women may not be expected to follow any specific dress code whereas men may be required to. Depending on the policy of the organisation in this regard, the Employee Handbook may describe the expectations on dress code and also attendant penal consequences, if any, when the code is violated.
Moral or Ethical Standard Several multinational organisations respect certain moral or ethical standard as a matter of policy. The standard may include ban on smoking in designated areas of work, ban on use of mobile phones at workplace, observing restraint on certain activities during the holy month of Ramadan in Islamic countries, etc. Organisations expecting employees to follow such standard, if any, are advised to incorporate such expectations in the Employee Handbook.
Recreation and Entertainment There are organisations that allow their employees to relax or even take a quick nap during working hours apart from allowing employees to play indoor games, facilitate women workers with play area for their children during working hours, etc. Some organisations facilitate the playing of channel music all the time that they believe, will contribute to employee productivity. The Handbook may furnish such details, where applicable.
Duty to notify personal information changes knol.google.com/k/…/6
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Personal details of employees such as telephone or mobile phone numbers, email address, residential address, marital status, etc., are subject to changes from time-to-time and the organisation needs to have updated information at all times. As such, the Handbook may advise employees to notify the designated Officer about changes to their personal information as soon as practicable.
Service Requests Procedure to be followed by employees for new services or restoration of services such as facility for international call dialling or roaming on telephone, provision of devices like GPS or Blackberry, restoration of data from backup, replacement of defective Computer or peripherals, etc., may also be furnished in the Handbook with prescribed forms, if any, to be used for such requests as annexure thereto.
Pay and Allowances It is a good practice to furnish the general procedure for disbursement of pay and allowances and such other relevant information as a separate chapter in the Employee Handbook. Ideally, details pertaining to pay and allowances may be furnished in different paragraphs dealing with each of the components for a good order, some of which are furnished below.
Disbursement of Pay While the Handbook may refer to the individual employee’s contract of employment for actual details of pay, the common features and other aspects of pay may be furnished as a matter of general information. For example, the general rules of pay disbursement like the regular date of payment, what happens if the regular date happens to be a public holiday, whether the employee is allowed to draw pay in cash or is the pay disbursed by bank transfer, basis of calculating pay for employees joining the organisation otherwise than at the beginning of the month, method of computing compensation for overtime work, etc., may be furnished in the Handbook.
Allowances Since different organisations have their own internal rules and regulations as to payment of allowances, it is a good practice to furnish an overview of all types of allowances applicable to different categories of employees in the Handbook. Furnishing a brief description of different allowances such as Dearness Allowance, House Rent Allowance, Hill Area Allowance, Night Shift Allowance, Overtime Allowance, Officiating Allowance, Special Area Allowance, etc., will knol.google.com/k/…/6
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help employees to understand both the concept and computation of these allowances.
Fringe benefits Compensation to employees in addition to salary is generally termed as Fringe benefits. Some examples of fringe benefits are paid holidays, retirement plans, life and health insurance plans, subsidized cafeterias, company cars, stock options, and expense accounts. In many cases, fringe benefits can add significantly to an employee's total compensation, and are a key ingredient in attracting and retaining employees. For the most part, fringe benefits are not taxable to the employee, though they are generally tax-deductible for the employer. It is a good practice to furnish details of Fringe benefits recognized by the organisation while making it clear that entitlement to such benefits would be in terms of the individual contract of employment.
Right of recovery There may be circumstances leading to disbursement of pay and allowances with inadvertent errors in computation thereof. For the sake of good order, it is a good idea to clearly mention in the Handbook that while the organisation shall take every care to ensure accuracy in computation of pay and allowances, it retains its right to recover excessive payments, if any, made due to oversight or inadvertent errors in computation upon discovery at a later date.
Deductions Similar to description of various allowances, it is a good practice to furnish details of possible deductions from the employees’ pay on account of statutory or other obligations. Examples of deductions are Taxes such as Income Tax, Profession Tax, and Installments for repayment of loans or advances, etc. In countries where statutory rules or regulations mandate issuance of prescribed forms authenticating the pay or allowances drawn by categories of employees for the purpose of furnishing Income Tax returns, procedure for obtaining these forms may also be described in the Handbook. The Handbook may also describe the procedure for handling situations where there are statutory restrictions on the limit of deductions from employees’ pay and allowances.
Career Growth The opportunities available within the organisation for the employee’s career growth may be knol.google.com/k/…/6
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incorporated in the Employee Handbook. This could be an area to tap the potential available in every employee by offering proper direction and avenues for growth. Policy on Continuous Professional Development, incentives for newer qualifications attained, facilities to enhance knowledge and skills such as access to Libraries, Online resources and such other matters may be described under this section. If the organisation has developed or adopted any Promotion Policy, the salient features of the Policy may be furnished.
Attendance and Leave Policies The organization’s Attendance and Leave Policies may be spelt out in clear terms in the Employee Handbook as it is one of the topics of interest to employees. It is always recommended to mention the organization’s holiday-year if it is different from the calendar year.
List of Holidays Wherever practicable, the public holidays declared by the local Government or local authority for the appropriate year as applicable for the organisation, may be listed out in the Handbook. Leave EntitlementThe Handbook may list out the types of leave (or holiday) to which an individual employee or category of employees is entitled to during a holiday-year with the rules and regulations in connection therewith. Care should be taken to ensure that none of the provisions are in contravention with any applicable law in force. The types of leave may include Casual leave, Standard leave or Earned leave, Sick leave or Medical leave, Maternity or Paternity leave, Adoption leave, Study leave or Examination leave, Parental leave and Special leave. It may also be advisable to mention about circumstances where authorized absence does not fall under any of these types of leave in which case it may be treated as unpaid leave. Limits, if applicable for any type of leave during a holiday-year, may also find place in the Handbook.
Unauthorized absence The definition and consequences of unauthorized absence may be spelt out in clear terms. Circumstances where absence may be deemed to be unauthorized may also be explained.
Employee Safety In many countries, it is mandatory to bring to the attention of all or certain categories of knol.google.com/k/…/6
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employees about certain safety measures and procedures to be adopted while at work. Some organisations, even in the absence of any such statutory requirements, issue advisories to employees on safety precautions to be taken while at work. The organisation may also have its own Business Resiliency-related procedures to be followed by all or certain categories of employees. The Handbook may also describe the steps that each and every employee is required to take in the event of emergency situations such as fire, power outage and accidental injury of a colleague. It is a good idea to describe common first aid procedure and furnish information about the availability and contents of one or more First Aid boxes in the premises of the organisation.The Employee Handbook is an ideal means of communication about matters related to employee safety and relevant procedures.
Conduct, Disciplinary and Appeal Rules The organization’s rules of conduct and procedures for disciplinary action and appeals may also find place in the Employee Handbook. If the organisation promotes a conciliatory approach and encourages a mechanism to redress the grievances of employees, procedure thereof may also be furnished. Some organisations encourage and expect employees to alert the management in case of any wrongdoing within the organisation comes to their notice. In order to ward off the consequential threat to employees, the organisation may follow certain procedures to deal with such situations aimed at protecting the disclosing person by maintaining confidentiality. This may also find place in the Employee Handbook. The Handbook may also contain procedure for dealing with allegations of workplace harassment or bullying. The duties and responsibilities of employees in the context of the organization’s policies on Data Protection, Email and Internet Usage and Transfer Policy including relocation within the same organisation or within the group or organisations may also find place in the Handbook.
Emergency Contacts It is also recommended to furnish the contact information (such as landline or mobile numbers) of personnel to be contacted after normal office hours for use in emergencies. Version History It is a good practice to incorporate the version details and history of the Handbook at a conspicuous place in the Handbook for the purpose of reference and records. knol.google.com/k/…/6
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The Employee Handbook - a knol…
The Employee Handbook An effective communication tool for human resources management Having associated with Insurance employees' trade Union movement for more than a decade in India, the Author of this Knol is a staunch supporter of ethics in human resources management. He was member of the Standing Committee (General Insurance) and the Working Committee of the All India Insurance Employees' Association and also the Regional Secretary of Tamil Nadu General Insurance Employees' Association, based at Coimbatore, India. Contents Introduction Advantages Recommended Contents more
Introduction It was several decades after the industrial revolution that the requirement of a strategic and coherent approach to effectively handle the most precious resource of any commercial enterprise – the human resource – was realized to be an essential ingredient for the success of the business organisation. Several modern management techniques were tried and tested until the concept of Human Resources management largely replaced the term personnel management, as an evolutionary process. One of the changes brought within the employer-employee relationship during the course of this evolution has been the emphasis on transparency. Most organisations now consider the need to be more transparent in their ongoing relationship with their human resources except to the extent of absolute confidentiality becoming inevitable. As a natural corollary, policies and standards were sought to be declared, formulated, documented, published and distributed within the enterprise. One such important document evolved in the process is the Employee Handbook which is a written-down documentation describing in brief or at length, the policies and standards relevant to the employment practice adopted by the organisation, facilitating mutual understanding of the rights and obligations of the parties to the contract of employment. knol.google.com/k/…/6
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Though Employee Handbook is not purported to be the legal document authenticating the contractual relationship between the employer and the employee, the contents therein can be relied upon as substantive evidence against allegations of unhealthy labour practices such as workplace harassment or discrimination.
Advantages The availability of a periodically updated and properly written Employee Handbook has several advantages from the points of view of both the employer and the employees. Some of these are listed below: 1. It facilitates the employer to ensure ongoing communication with the employees, by providing a consolidated version of work-related information, clearly spelling out what the employees can expect from the employers and what is expected of the employees 2. It goes a long way in establishing the employer’s commitment to consistent, fair and dispassionate approach to the management of human resources 3. The Handbook being made available to all cross sections of employees, helps minimize disputes and promote harmony within the organisation apart from saving the attendant costs of possible escalation of avoidable issues 4. It helps decentralization of human resources management to the level of immediate supervisors, facilitating free flow of decision-making on routine matters 5. A well-drafted Handbook also plays an effective role in redressing employee grievances, the common factor engendering disgruntled employees and quite often bursting into major labour disturbances 6. In many countries, the statutory requirement of ensuring fair treatment of employees and good labour practices is sought to be achieved by effective human resources management practices including distribution of the Employee Handbook 7. An organisation that consistently pursues a policy of keeping the Employee Handbook updated and circulated or distributed among the employees stands a good chance of defending its position against legal actions for alleged workplace harassment or discrimination that are common these days. 8. For new recruits, Employee Handbook is very helpful in engendering a sense of belonging to the organisation apart from playing a positive role in inculcating the best industry/workplace culture in them and raising their level of confidence 9. It even helps the immediate family members of employees meeting with work-related accidents in determining the available recourses to them upon such eventualities and/or contingencies 10. The Employee Handbook also enhances the employer’s image in the labour market and helps attracting talents with ease
Who should initiate? knol.google.com/k/…/6
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Given the impact that a well-drafted Employee Handbook will create among the stake-holders, it is always recommended that the highest decision-making executive of the organisation shall initiate the process of putting it in motion, and play an active role in supervising, reviewing, recommending and ensuring that it is regularly updated; it sufficiently reflects the employer’s agenda; and it is well-received and serves the objectives optimally. Though dedicated Human Resources personnel may be assigned with the relevant tasks and responsibilities, the executivecontrol over the entire process is a sine-qua-non.
Does the Handbook serve as a Personnel Manual? It should be remembered that the Employee Handbook is not always exhaustive and comprehensive. It is also not meant to replace a Personnel Manual that contains more comprehensive and exhaustive information and procedures pertaining to different aspects of employment. Generally, the Employee Handbook is, at best, a guiding document that may refer to more exhaustive sources for detailed information on any particular issue or subject dealt with. There is no hard and fast rule that imposes documentation of an exhaustive and comprehensive allpurpose Employee Handbook that handles all aspects of Human Resources management in the organisation.
Recommended Contents The following contents are recommended for incorporation into the Employee Handbook in order to achieve the objectives outlined. Care must be taken to ensure that none of the provisions contained in the Handbook is in contravention of any local or federal statute.
Preamble It is a good practice to incorporate in the Employee Handbook a suitable Preamble in the nature of a disclaimer intended to avoid misinterpretations. The Preamble should be descriptive in nature, emphasizing that the Employee Handbook is intended to provide a summary of the current employment policies, procedures and practice followed in the organisation for information, guidance and reference purposes. Since the Employee Handbook may not contain certain terms, procedures or other aspects specific to the nature of any particular job or category of jobs, it is always advisable to make it clear in the Preamble that in the event of any provision contained in the Employee Handbook is not in conformity with or is contrary to anything contained in the individual contract of employment or a more detailed Personnel Manual or any internal Memorandum circulated among the employees amending any existing provision, the provisions contained in such contract knol.google.com/k/…/6
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of employment, Personnel Manual or Memorandum respectively shall prevail to the limited extent of such variance. The Preamble may also express the privilege vested in the employer to amend any provision contained in the Handbook including discontinuation of any benefits, policies, procedures or other terms and conditions of service as may be necessitated from time-to-time; and also assure that all efforts may be made to notify the employee concerned in such cases, either individually or collectively, by means of appropriate communication channels including internal Memorandum or publication in the Intranet website of the organisation. In order to ensure consistency and credibility to the Employee Handbook, the organisation shall have proper procedure in place to incorporate these amendments in the Handbook from timeto-time.
Table of Contents A good Handbook will contain a Table of Contents (TOC) facilitating the employees to easily browse the appropriate provisions that they are looking for. The TOC is recommended to be as simple and clear as possible with page numbers furnished even for sub-titles for easy location within the Handbook.
Foreword The Handbook being a document intended for distribution among the employees including new recruits, a Foreword from the Chief Executive Officer will add value to the document apart from making it appear more credible and authenticated. The Foreword may begin with welcoming the employee into the organisation. It may contain a summary about the organisation in general with specific references to the local office and its operations. It is a good practice to convey the Mission, Vision and Core Value Statements and Operating principles of the organisation through the Handbook. It may also elucidate on the prospects for career growth within the organisation and formally introduce the employee to the Human Resources department of the organisation.
Induction and Training If the organisation has any specific orientation or induction and training programme, furnish details thereof specifying the objectives of each such session. It is also a good practice to stipulate a time-frame within which the programme is expected to be completed by new employees. knol.google.com/k/…/6
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The Human Resources department should be assigned with the task of continually monitoring and updating the orientation or induction and training programme contents, depending on the functional and job responsibilities of the employees. A good homework with ideally a check-list to be maintained by the HR department will be helpful. Apart from the induction training, it is always advisable to schedule ongoing training sessions periodically covering all categories of employees to keep them updated with new technologies and skills. To encourage participation, it is a good idea to make it part of the Appraisal process. Information on such ongoing training sessions, if offered, may also be furnished in the Handbook with details of subjects dealt with, periodicity, participation criteria, etc.
General conditions of service The Handbook may also contain information about general conditions of service of the employees and information on topics of interest to employees with particular reference to the following:-
Work Permit If statutory requirements stipulate employers to seek Work Permits for certain categories of employees, it shall be appropriate to provide information about the procedure to be followed to obtain such permits and information or documentation expected from the employee in connection therewith (Examples: Photographs, copy of Passport, etc.). Usually, the Human Resources department maintains validity details of such work permits and alert employees sufficiently in advance for renewal thereof. However, it is a good idea to shift the onus on the employees by asking them to notify their Human Resources or Facilities Manager for renewal of their work permit at least one month in advance of its expiry date.
Probation The period of probation, if any, applicable to new employees joining the organisation may be furnished in the Handbook with procedure and consequences of the evaluating process during this period. This section should also cover information on issues likely to raise doubts in their minds such as eligibility for leave during the period of probation.
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Working Hours The regular working hours of the organisation may be stipulated with clarity on specific period, if any, allowed for tea or lunch recess. If there are regular changes in working hours during any specific period of time (example, during the holy month of Ramadan in the Middle East region or Islamic countries), details thereof may also be specified. Similarly, if specific categories of employees are exempted from the usual working hours or are expected to follow different working hours, mention about such deviations may also be made. It is not unusual to add a proviso asserting the employer’s right to require employees to put in additional hours of work to meet unforeseen deadlines or emergencies. However, it is advisable to mention about the employer’s obligation as well, to abide by the industry practice or statutory requirement, where applicable (Example: Payment for overtime work). A trend has emerged in the modern corporate world whereby employees are permitted to work from home, depending on the nature of the work and factors concerning feasibility of such option. If applicable, a mention thereabout is recommended.
Workplace Resources Though it is a general practice followed by organisations with dedicated HR departments to provide for Furniture, Stationery, Computer and peripherals to new recruits either at the time of their entry or within a reasonable time thereafter, some companies may expect employees to furnish prescribed requisition forms for being provided with these resources. It is advisable to mention about such requirements, if any, in the Handbook itself, preferably with the prescribed form, if applicable, as annexure thereto. The Handbook may also provide for handing over or requisitioning work resources and the procedure to be followed in the event of internal transfers within the organisation. Workplace resources may include provision of Stationery, Furniture, Computer and Accessories, Landline and/or Mobile Phone instrument, Punch or Proximity Cards for Office entry or exit, allotment of parking space for private vehicles, logon credentials for accessing the organisation’s local area network, access to the organisation’s Intranet, Email system, etc.
Recovery and Reimbursements Some organisations allow their employees to use personal devices such as Mobile Phones owned by the organisations themselves, for personal use and recover proportionate usage charges from these employees. Similarly, charges for international private calls made from the knol.google.com/k/…/6
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landline phones are also recovered. On the other hand, official expenses incurred by employees from their personal devices such as telephone rental and call charges, internet rental and usage charges, etc., are reimbursed by the organisation. The policy of the organisation in respect of the above scenarios and the procedure to be followed in these cases may be furnished in the Handbook.
Dress Code Expectation of the organisation as to the dress code to be followed by different categories of employees during given periods of time may be furnished in the Handbook. Some organisations may insist certain dress code to be followed only on certain situations such as use of full suit and tie while attending Client meetings, etc. There may also be exemptions from dress code during certain days of the week. In some cases, women may not be expected to follow any specific dress code whereas men may be required to. Depending on the policy of the organisation in this regard, the Employee Handbook may describe the expectations on dress code and also attendant penal consequences, if any, when the code is violated.
Moral or Ethical Standard Several multinational organisations respect certain moral or ethical standard as a matter of policy. The standard may include ban on smoking in designated areas of work, ban on use of mobile phones at workplace, observing restraint on certain activities during the holy month of Ramadan in Islamic countries, etc. Organisations expecting employees to follow such standard, if any, are advised to incorporate such expectations in the Employee Handbook.
Recreation and Entertainment There are organisations that allow their employees to relax or even take a quick nap during working hours apart from allowing employees to play indoor games, facilitate women workers with play area for their children during working hours, etc. Some organisations facilitate the playing of channel music all the time that they believe, will contribute to employee productivity. The Handbook may furnish such details, where applicable.
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Personal details of employees such as telephone or mobile phone numbers, email address, residential address, marital status, etc., are subject to changes from time-to-time and the organisation needs to have updated information at all times. As such, the Handbook may advise employees to notify the designated Officer about changes to their personal information as soon as practicable.
Service Requests Procedure to be followed by employees for new services or restoration of services such as facility for international call dialling or roaming on telephone, provision of devices like GPS or Blackberry, restoration of data from backup, replacement of defective Computer or peripherals, etc., may also be furnished in the Handbook with prescribed forms, if any, to be used for such requests as annexure thereto.
Pay and Allowances It is a good practice to furnish the general procedure for disbursement of pay and allowances and such other relevant information as a separate chapter in the Employee Handbook. Ideally, details pertaining to pay and allowances may be furnished in different paragraphs dealing with each of the components for a good order, some of which are furnished below.
Disbursement of Pay While the Handbook may refer to the individual employee’s contract of employment for actual details of pay, the common features and other aspects of pay may be furnished as a matter of general information. For example, the general rules of pay disbursement like the regular date of payment, what happens if the regular date happens to be a public holiday, whether the employee is allowed to draw pay in cash or is the pay disbursed by bank transfer, basis of calculating pay for employees joining the organisation otherwise than at the beginning of the month, method of computing compensation for overtime work, etc., may be furnished in the Handbook.
Allowances Since different organisations have their own internal rules and regulations as to payment of allowances, it is a good practice to furnish an overview of all types of allowances applicable to different categories of employees in the Handbook. Furnishing a brief description of different allowances such as Dearness Allowance, House Rent Allowance, Hill Area Allowance, Night Shift Allowance, Overtime Allowance, Officiating Allowance, Special Area Allowance, etc., will knol.google.com/k/…/6
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help employees to understand both the concept and computation of these allowances.
Fringe benefits Compensation to employees in addition to salary is generally termed as Fringe benefits. Some examples of fringe benefits are paid holidays, retirement plans, life and health insurance plans, subsidized cafeterias, company cars, stock options, and expense accounts. In many cases, fringe benefits can add significantly to an employee's total compensation, and are a key ingredient in attracting and retaining employees. For the most part, fringe benefits are not taxable to the employee, though they are generally tax-deductible for the employer. It is a good practice to furnish details of Fringe benefits recognized by the organisation while making it clear that entitlement to such benefits would be in terms of the individual contract of employment.
Right of recovery There may be circumstances leading to disbursement of pay and allowances with inadvertent errors in computation thereof. For the sake of good order, it is a good idea to clearly mention in the Handbook that while the organisation shall take every care to ensure accuracy in computation of pay and allowances, it retains its right to recover excessive payments, if any, made due to oversight or inadvertent errors in computation upon discovery at a later date.
Deductions Similar to description of various allowances, it is a good practice to furnish details of possible deductions from the employees’ pay on account of statutory or other obligations. Examples of deductions are Taxes such as Income Tax, Profession Tax, and Installments for repayment of loans or advances, etc. In countries where statutory rules or regulations mandate issuance of prescribed forms authenticating the pay or allowances drawn by categories of employees for the purpose of furnishing Income Tax returns, procedure for obtaining these forms may also be described in the Handbook. The Handbook may also describe the procedure for handling situations where there are statutory restrictions on the limit of deductions from employees’ pay and allowances.
Career Growth The opportunities available within the organisation for the employee’s career growth may be knol.google.com/k/…/6
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incorporated in the Employee Handbook. This could be an area to tap the potential available in every employee by offering proper direction and avenues for growth. Policy on Continuous Professional Development, incentives for newer qualifications attained, facilities to enhance knowledge and skills such as access to Libraries, Online resources and such other matters may be described under this section. If the organisation has developed or adopted any Promotion Policy, the salient features of the Policy may be furnished.
Attendance and Leave Policies The organization’s Attendance and Leave Policies may be spelt out in clear terms in the Employee Handbook as it is one of the topics of interest to employees. It is always recommended to mention the organization’s holiday-year if it is different from the calendar year.
List of Holidays Wherever practicable, the public holidays declared by the local Government or local authority for the appropriate year as applicable for the organisation, may be listed out in the Handbook. Leave EntitlementThe Handbook may list out the types of leave (or holiday) to which an individual employee or category of employees is entitled to during a holiday-year with the rules and regulations in connection therewith. Care should be taken to ensure that none of the provisions are in contravention with any applicable law in force. The types of leave may include Casual leave, Standard leave or Earned leave, Sick leave or Medical leave, Maternity or Paternity leave, Adoption leave, Study leave or Examination leave, Parental leave and Special leave. It may also be advisable to mention about circumstances where authorized absence does not fall under any of these types of leave in which case it may be treated as unpaid leave. Limits, if applicable for any type of leave during a holiday-year, may also find place in the Handbook.
Unauthorized absence The definition and consequences of unauthorized absence may be spelt out in clear terms. Circumstances where absence may be deemed to be unauthorized may also be explained.
Employee Safety In many countries, it is mandatory to bring to the attention of all or certain categories of knol.google.com/k/…/6
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employees about certain safety measures and procedures to be adopted while at work. Some organisations, even in the absence of any such statutory requirements, issue advisories to employees on safety precautions to be taken while at work. The organisation may also have its own Business Resiliency-related procedures to be followed by all or certain categories of employees. The Handbook may also describe the steps that each and every employee is required to take in the event of emergency situations such as fire, power outage and accidental injury of a colleague. It is a good idea to describe common first aid procedure and furnish information about the availability and contents of one or more First Aid boxes in the premises of the organisation.The Employee Handbook is an ideal means of communication about matters related to employee safety and relevant procedures.
Conduct, Disciplinary and Appeal Rules The organization’s rules of conduct and procedures for disciplinary action and appeals may also find place in the Employee Handbook. If the organisation promotes a conciliatory approach and encourages a mechanism to redress the grievances of employees, procedure thereof may also be furnished. Some organisations encourage and expect employees to alert the management in case of any wrongdoing within the organisation comes to their notice. In order to ward off the consequential threat to employees, the organisation may follow certain procedures to deal with such situations aimed at protecting the disclosing person by maintaining confidentiality. This may also find place in the Employee Handbook. The Handbook may also contain procedure for dealing with allegations of workplace harassment or bullying. The duties and responsibilities of employees in the context of the organization’s policies on Data Protection, Email and Internet Usage and Transfer Policy including relocation within the same organisation or within the group or organisations may also find place in the Handbook.
Emergency Contacts It is also recommended to furnish the contact information (such as landline or mobile numbers) of personnel to be contacted after normal office hours for use in emergencies. Version History It is a good practice to incorporate the version details and history of the Handbook at a conspicuous place in the Handbook for the purpose of reference and records. knol.google.com/k/…/6
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