It is not essential to have a staff handbook, but such a document can be very useful in setting out, in greater detail than an employment contract allows, information about an employer and what an employee should expect. Importantly, a staff handbook usually contains non-contractual policies meaning the employer has flexibility (within reason) to amend them without needing employees’ consent. In contrast, contractual terms are binding and, usually, changes have to be agreed.
A staff handbook can also provide evidence of how the employer deals consistently with a range of matters to help rebut an argument that treatment in any particular case is “unfair” or that an individual has been singled out. It will also provide a standard by which the employer will be judged, so any departure from the policies contained in it should be considered carefully and it is recommended that the reasons are documented.
Whilst employers generally have to act reasonably, it can be reasonable to have a policy that is stricter than the norm if the employer’s industry or company values justify this. By way of example, an organisation’s disciplinary policy is often set out in the staff handbook where non-exhaustive examples of gross misconduct are defined. These may include specific “no-no’s” which reflect matters that the business considers could be particularly risky or brand-damaging. Care will still need to be taken to ensure that the application of policies is not discriminatory.
Summary of reasons to have a staff handbook
- It can help keep a business “on track”
- A well-drafted staff handbook will create clarity around policies and expectations, in turn supporting HR processes and helping to guide management and the senior leadership team in decision-making
- A staff handbook is an instrument to communicate company culture and values and encourage a joined-up approach – at its best, it will contribute to positive employee and customer engagement and further the employer’s “mission”
- It can help employees understand expectations for conduct and performance (i.e. benchmarking)
- A staff handbook can help minimise risk and conflict
What’s your organisational style?
A practical consideration in introducing (or updating) a staff handbook is how the employer wants it to represent its business. A regulated financial services firm may have a different tone/emphasis in how it sets out its policies and what they cover compared with, say, an innovative, less “corporate” business in which creativity and individuality are hallmarks of the company’s culture and there are fewer constraints on how business is conducted.
When putting together a handbook, it can be helpful for an employer (or its HR team) to ask itself:
- Will the content be contractual or non-contractual (bearing in mind that, sometimes, a handbook fleshes out contractual terms – e.g. a pension clause)?
- What communication style or tone do you want the staff handbook to adopt?
- Are there industry-specific requirements or standards that you would want to reflect in the drafting?
- Do you want employees to acknowledge that they have received the staff handbook and confirm that they have read it? (This might need to be factored into job offer letters, for example.)
- How will updates to the staff handbook be communicated? Will they be electronic only/shared on the staff intranet or reissued as inserts/printed?
Cains’ employment lawyers can review or provide a staff handbook tailored to your requirements and advise on the application of policies in less “standard” situations and/or specific industry sectors. Come and talk to us if you feel your HR documentation would benefit from a health check generally; we’ll be happy to provide recommendations and help you bring your templates into compliance.
