That said, a poorly written or incomplete handbook can cause more harm than good. Oftentimes, poorly written handbooks are a mecca for employee rights and claims against the employer, which can cause legal problems. To avoid these problems, make sure these main elements are included in your company's employee handbook:

1. Company Overview. Every employee handbook should start off by introducing the company.



2. Equal Oppotunity Employer. Every employee handbook should state that the employer will not based employment or employment decisions on the employee's religion, sex, age, race, etc...



3. Disclaimer. Every employee handbook should have a disclaimer at both the beginning and end. The disclaimer should specify that the handbook is not a contract of employment and that the employee remains an employee at will ("We recognize the employee's right to resign at any time for any reason; similarly we may terminate any employee at any time, with or without cause.") Failure to include the notice, might enable a terminated employee to sue you for breach of contract.



4. Sexual Harassment Policy. California requires every employer to have a written sexual harassment policy, even if there is only one employee. The policy should clearly state that your company will not tolerate such conduct and the policy itself should set forth how such claims will be redressed.



5. Definitions. Distinguish between full-time employees and contract employees, but avoid using the words "permanent" and "probationary." Calling workers permanent implies an arrangement that you cannot terminate "at will" and probationary implies that employment will be permanent after the probationary period ends.



6. Defined Work Week. You should carefully define your work week as the seven-day period within which you calculate overtime. Never specify a "normal" work week of Monday through Friday. If you do, your employees might refuse to work after 5:00 P.M. during the week and on weekends.



7. Vacation Policy. Your vacation policy should state that the company must approve the timing of employee vacations and provide a description of all other leave policies (sick, burial, family, medical, jury duty and military). This will enable you to maintain adequate staffing during peak vacation seasons.



8. Pay and Benefits. Every employee handbook should set forth general statements about when paychecks will be issued, how promotions and wage increases are handled, and what benefits are provided by the employer.



9. Acknowledgment Page. Finally, every employee handbook should contain an acknowledgment page to encourage and ensure the employee reads the handbook. The signed acknowledgment page shpuld be placed in the employee's personnel file.

The actual policies in the manual should vary from company to company, depending on the company's size, the number of employees, and the benefits offered. The policies and content set forth above are applicable even to businesses with just a single employee.