As a business owner, your time is limited, and your resources are precious. Employers must answer questions from their employees every day, ranging from the mundane “Do we get the day off on Arbor Day?” to the significant “What are my productivity expectations?” Many of these questions can be answered in a well-drafted employee handbook.

Employee handbooks can save employers and employees time and prevent disagreements and unnecessary litigation expenses by accurately describing the policies, procedures, and expectations of the employer. Larger businesses, with 10 or more employees, may especially benefit from having such a handbook, because there is likely to be less direct interaction between the management and the employees in such a company.

All employee handbooks should contain certain provisions. First, the handbook should include an introduction to the company, with an accompanying description of the company’s philosophy and approach to doing business. This helps employees understand what is expected of them and what they can expect while working for the company.

Secondly, the handbook should reaffirm the at-will employment relationship. Under Wisconsin law, in the absence of a written agreement to the contrary all employees are presumed to be at-will employees, which generally mean that their employment can be terminated at any time. With respect to such employees, the handbook should specifically state that either the employer, or the employee, may terminate the employment relationship at any time, with or without notice or cause. To further that understanding, the handbook should also indicate that it is not intended, nor should it be construed to constitute, a contract of employment, or any guarantee of continued employment. Do not be afraid to repeat this language throughout the handbook, especially in sections discussing disciplinary procedures and termination.

Third, the handbook should include information on general company policies, such as expected work hours, with definitions of the work week and times for breaks and lunch, and summaries of expected behavior, such as dress codes and policies on sexual and other forms of harassment. Information on performance reviews and evaluations should also be included in the handbook. This way, employees will know how often and when they can expect to be evaluated, and such evaluations can be effectively used to improve performance and productivity Employees who understand the employer’s expectations are more likely to meet those expectations, and are encouraged to exceed those goals required for promotions and raises.

It is also helpful to outline the grievance and disciplinary procedures to be utilized for addressing violations of company policies and rules that do not result in immediate termination.

Finally, the handbook should include a written acknowledgement by the employee that he or she received a copy of the handbook, had an opportunity to review its contents, understands its contents, and agrees to abide by the policies contained in the handbook. This way, you can avoid challenges to terminations and other disciplinary actions on the grounds that the employee was not aware of the policy or rule he or she has violated.

Other provisions can be specifically tailored to the company and the nature of its business. For example, manufacturers and building contractors may wish to include provisions on specific safety rules, including reporting accident and injuries that occur on the job. If employees operate company-owned or leased vehicles, the handbook should specify rules for the use of those vehicles, such as limiting the operators and occupants to company employees.

As important as a handbook is, it is equally important to consistently follow the policies and procedures outlined in the handbook. For example, if the disciplinary process outlined in the handbook is not followed in the case of a particular employee, this fact can be used to challenge the employee’s termination in an unemployment compensation dispute, or as evidence of discrimination in a state or federal proceeding. Consequently, it is imperative that all management personnel are familiar with company policies, and that they follow those policies on a consistent basis.

As handbooks and manuals generally address legal issues, such as harassment and privacy regulations, it is helpful to have an attorney with experience in employment matters review the handbook or manual before it is given to employees. An attorney can also assist in making sure the language in the handbook is specific, so that employees and courts do not interpret vague provisions against the drafter, i.e. the company.

No handbook or policy manual can possibly address all of the issues that may come up in the context of the employer-employee relationship. However, a well-drafted employee handbook can go a long way toward making both the employer, and the employee, more comfortable by eliminating some of the guesswork in the employment relationship, as well as saving litigation costs and other expenses.