An Employee Handbook is an important tool that enables employers to clarify the boundaries and responsibilities of the employment relationship with employees outside of the normal Contract of Employment. The purpose of a Staff Handbook is not to clarify certain terms but to set expected standard of behaviour by both the employer and its employees. A Handbook, as a non-contractual document, can be updated regularly, providing guidance policies on various aspect of the employee’s working life, such as, policies relating to sickness, disciplinary and grievance policies, holiday policies, fringe benefits such as bonuses and other matters generally.

A well drafted Handbook will allow an employer to both incentivise staff and also to clarify what standards of behaviour are expected of them. Once a Handbook is put into place, an annual review of the Handbook, including any updated policies, will help to maintain the Handbook as a current document in the ever developing world of employment law. An example of this is the recent Bribery Act, whereby standards of behaviour were set out in law dealing with organisations and their dealings with third parties. These obligations of course apply to employees and a policy such as this, alongside other policies, will set the standards of behaviour expected of employees. If employees fail to comply with such policies then it may allow the employer to commence a disciplinary process against the employee.

Employee Handbooks are also important from a non-discrimination point of view, providing standards of behaviour in respect of equal opportunities as well as confidential avenues for employees to make any complaint of harassment. If an employer has a clear anti harassment and anti bullying procedure in place, this will allow any employee that feels they are being bullied or harassed to make an appropriate complaint and, more importantly, will potentially prevent the employer from being liable for any claims against the business.