How to Create an Employee Handbook

HR Policies

11 May 2025 (Last updated 16 June 2025)

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Writing an employee handbook from scratch is a big undertaking. You have to explain a lot of rules and guidelines in a way that is easy to understand yet is detailed enough to get the full message across to your employees.

Creating an employee handbook is a critical step in setting your employees up for success. Employees need to know what is expected of them as they go about their daily duties. They need to be well-informed about the company’s policies and procedures and know to get in touch with management or HR when needed. An employee handbook should contain lawful and reasonable management directions that your employees must abide by or face disciplinary action. 

For this reason, it’s a good idea to consult a professional.  They can review the contents of your employee handbook and advise you on any terms or conditions that may be hard to interpret or unlawful. By taking this extra step, you could be in a better position to defend employee claims.

Aside from the basic employment guidelines, your employee handbook should introduce staff to the way you do things, the values you stand for, and the kind of corporate culture you envision. Having this information can give your employee handbook a ‘personal touch’ that is more engaging for your staff to read.

What to include in your employee handbook

How you choose to structure the contents of your employee handbook is entirely up to you. The kind of information you include will depend greatly on the size of your company, the industry you specialise in, and the tone or style you use to communicate with your employees.

Regardless of your approach, there are certain things that every company should include in their employee handbook, such as a reflection of the current company culture, workplace policies and procedures, company expectations, and key onboarding information.

You might wish to include:

  • Information on the Company Culture
  • Important Company Values
  • Your Mission Statement

These things help establish what sets your company apart and why employees should want to work for you. 

Provide a comprehensive overview of your company’s policies and procedures

As part of your employee handbook, you may include:

  • General employment information and policies and a Code of Conduct
  • Discrimination, bullying and harassment policies and grievance procedures
  • Health and safety policies, procedures and information
  • Information about employee benefits, bonus schemes, reward and recognition programmes
  • Leave policies and procedures
  • Performance standards and training and development opportunities
  • Disciplinary, termination and redundancy policies
  • Confidential information, privacy and internet and email policies
  • Use of Company property e.g. company mobile phone policy

Outline company expectations

In addition to your general employment information and information about who your company is, you may also consider including a section about the reasonable expectations your company has for your employees. What type of performance do you expect? Is there a specific attitude or a specific set of behaviours your company should exemplify? Clearly lay out your company’s expectations for employees.

You could also include any relevant information about what your employees should expect from your company, especially as it differs from other companies in your industry. Consider information like continuing education offers and experience employees can gain as well as specific help available at your company. 

Include key onboarding information

Employees will likely refer to the employee handbook more during the onboarding process than they do at any other point during employment. To help ensure that employees are able to easily access information related to the onboarding process, make sure your handbook contains everything they need to know to get signed up for benefits, connect with members of your HR department, or learn more about how to accomplish their jobs. Some employee handbooks may even contain critical training information that can help employees do their jobs more effectively. 

Creating the employee handbook

Whether you’re a small business that’s just getting off the ground or a business that has been around for a while, but that needs a new employee handbook, your handbook creation process will look much the same. 

  1. Take a look at your policies. Update anything that is out-of-date, especially changed benefits policies or health and safety policies that are not in keeping with current standards. 
  2. Create an outline for your handbook, including all of the important information you want to add to it. 
  3. Summarise your important policies and procedures, then add those summaries along with the extended versions of the procedures. 
  4. Add any other important information
  5. Have an employment relations professional review your handbook to ensure that it meets all necessary legal requirements and reflects best practice
  6. Edit your handbook.
  7. Distribute as needed.
  8. Consult employees as to any new policies or major procedural changes if required in accordance with the applicable award or agreement.
  9. Get employees to sign off on the handbook to acknowledge their understanding.
  10. Update regularly.

Great culture starts with Peninsula

Peninsula works with business owners and employers to create comprehensive employee experiences and productive workplaces. Our tailored resources can guide you through all your employment relations and workplace health and safety challenges. Talk to our team members on 1300751653 today.

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