Digital University's

Model Employee Handbook

This handbook has been developed by Digital University using material provided by Wisconsin Women's Business Initiative Corporation and Online Women's Business Center (OWBC) in partnership with the US Small Business Administration (SBA). It is public domain material designed to assist businesses in providing sound employee policies and procedures. Digital University, Inc., OWBC and the SBA expressly disclaim any responsibility and liability for material, opinions, or advice communicated in this document.

The Company Employee Handbook

Introduction

The actual policies adopted will vary from company to company and will depend to a large extent on size, number of employees, benefits offered, and other factors. A small family-owned and operated business generally does not require as many written policies as a company with a large, diverse workforce. But regardless of the size or complexity of your business, once you hire your first employee its best to take the time to think through the policies for your company, have at least the minimum list of policies for your employees, and write them down.

We have included a wide variety of company employee policies in this section. Whenever possible, we have provided examples to help you develop your own company employee handbook. Make sure that you understand the policies that you choose for your company -- don't just copy these examples as they may not be appropriate for all situations.

Table of Contents

Employee Handbook: Acknowledgement Form

Employee Handbook: Introduction

History

Goals, Values and Beliefs

Employee Handbook: Equal Opportunity

Employee Handbook: General Policies

Employee Handbook: Attendance

Employee Handbook: Use of Company Property

Employee Handbook: Confidentiality

Employee Handbook: Dress Code

Employee Handbook: Computer Usage

Employee Handbook: Safety and Accident Rules

Employee Handbook: Anti-Substance Abuse

Employee Handbook: Sexual Harassment

Employee Handbook: Smoking

Employee Handbook: Performance Reviews

Employee Handbook: Employment Categories

Employee Handbook: General Policies

Employee Handbook: Compensation and Benefits

Employee Handbook: Payroll

Employee Handbook: Work hours and reporting

Employee Handbook: Holidays

Employee Handbook: Vacation

Employee Handbook: Short-term Disability

Employee Handbook: Continuation of Medical/COBRA

Employee Handbook: Worker's Compensation

Employee Handbook: Retirement Plans

Employee Handbook: Tuition Assistance

Employee Handbook: Employee Assistance Program

Employee Handbook: Employee Assistance Program

Employee Handbook: Other Benefits

Employee Handbook and Human Resource Policies

Employee Handbook: Acknowledgement Form

You should make sure that the employee knows that it is their responsibility to read and understand the company handbook. It is a good idea to put this acknowledgment up front versus at the end of the handbook. This way, the employee cannot miss it and it will, hopefully, ensure that your employees actually read the handbook. Additionally, you can avoid prolonged "but no one told me" conversations. The acknowledgment statement should be signed by the employee, within a reasonable time (i.e. two (2) weeks) and returned to the appropriate personnel representative.

It is important that the acknowledgment be clear without sounding ominous or threatening.

First Federal

EMPLOYEE HANDBOOK

This employee handbook has been prepared for your information and understanding of the policies, philosophies and practices and benefits of FIRST FEDERAL Corporation. PLEASE READ IT CAREFULLY. Upon completion of your review of this handbook, please sign the statement below, and return to your personnel representative by the due date. A reproduction of this acknowledgment appears at the back of this booklet for your records.

I, ____________________, have received and read a copy of the FIRST FEDERAL Corporation Company (The Company) Employee Handbook which outlines the goals. policies, benefits and expectations of The Company, as well as my responsibilities as an employee.

I have familiarized myself, at least generally, with the contents of this handbook. By my signature below, I acknowledge, understand, accept and agree to comply with the information contained in Employee Handbook provided to me by The Company. I understand this handbook is not intended to cover every situation which may arise during my employment, but is simply a general guide to the goals, policies, practices. benefits and expectations of The Company.

I understand that The Company Employee Handbook is not a contract of employment and should not be deemed as such, and that I am an employee at will.

______________________________________
(Employee signature)

Please return by: ______________________
(put date here)
Feel free to cut and paste

It is a good idea to set aside time and have your employee read the handbook during the orientation process, or provide an extra thirty minutes at a lunch break during the first week for this express purpose. Then encourage the employee to take it home and further review during the second week of employment. Schedule a conference with the employee at the end of the second week, or Monday of the beginning of the third week (no later), to answer any questions and obtain the signed acknowledgment; or have the personnel department set it up, as appropriate.

Employee Handbook: Introduction

The introduction is an important component of your company's employee handbook. This is the place for you to welcome the employee to your company as well as describe the company, its mission, values and beliefs, and perhaps even describe some of the long term goals. You're not trying to recreate your business plan in the handbook, just provide a few key statements so that the employee has the opportunity to learn about the company from the very beginning. You will want to include your mission statement and describe in general terms the employee's role in fulfilling this mission. At a minimum.

Many companies formulate the introduction into the form of a welcome letter to employees, as shown in the example below.

First Federal

EMPLOYEE HANDBOOK

Dear Employee,

Welcome to First Federal!

We are excited to have you as part of our progressive team. You were hired because we believe you can contribute to the achievement of our goals and to the bottom line of success, and share our commitment to our mission statement.

First Federal is committed to distinctive quality and unparalleled customer service in all aspects of our business. As part of the team, you will discover that the pursuit of excellence is truly a rewarding aspect of your career with First Federal. As a team member, you must "own" the results of your productivity.

This employee handbook contains the key policies, goals, benefits, and expectations of First Federal; and other information you will need as part of our team.

Our mission statement:

At FIRST FEDERAL, we pledge to provide distinctive quality and unparalleled customer service as we strive to gain the respect and trust of our customers, suppliers and partner vendors.

The success of FIRST FEDERAL is determined by our success in operating as a unified team. We have to earn the trust and respect of our customers every day in order that the customer make the decision to choose our services. We sell service and service is provided by people. There are no magic formulas.

Our success is guaranteed by creative, productive employees who are empowered to make suggestions while thinking "outside the box." Your job, every job, is essential to fulfilling our mission to "provide distinctive quality and unparalleled customer service" everyday to more people who "trust and respect" us. The primary goal at FIRST FEDERAL, and yours, is to live our mission statement and continue to be an industry leader. We achieve this through dedicated hard work and commitment from every employee. It is the desire of FIRST FEDERAL's management, from top to bottom, to have every

employee succeed in their job, and assist in achieving our goals.

You should use this handbook as a ready reference as you pursue your career with FIRST FEDERAL. Additionally, the handbook should assure good management and fair treatment of all employees. At FIRST FEDERAL, we strive to recognize the contributions of all employees.

Welcome aboard. We look forward to your contribution.

Sincerely,

Jessica Jones Marva Preston
President Human Resource Director
Feel free to cut and paste

The remainder of the introduction contains a statement of the company's values and beliefs, its goals, an overview or history of the company, and the equal opportunity employment affirmation. These topics can be covered in succinct paragraphs or set out in outline form. If you choose to forego a welcome letter, the elements included in the previous letter can be incorporated into the introduction. Since this is your employee handbook, make sure that the content relates to the employee and the style and tone is easy to use and not intimidating.

History

This is the place to detail the background and accomplishments of the company, your current status, (e.g., size, locations, customer base, departments, etc.). Keep it brief and inspirational.; You may, again, paraphrase your mission statement, as well as stress your commitment to your personnel as assets to your success.

First Federal
EMPLOYEE HANDBOOK

Our History

FIRST FEDERAL started in 1993 in response to the overworked professional workforce who had more obligations than time. We ease the professional burden by the performance of duties which take time away from leisure time-or interferes with work - leaving time for the real important things in their lives. In 1995, we streamlined and magnified our customer service goals in order to ensure that each customer's unique needs were met and required all outside vendors to pass a ten point quality and service inspection test. The headquarters are located in Dallas, Texas and includes senior management, marketing, finance and human resources. Outlying offices house service representatives to serve customers locally.

FIRST FEDERAL employees, partners in our success, vigorously uphold our mission statement for every assignment. Our customers have responded tremendously and their support of our commitment has enabled FIRST FEDERAL to extend our operation into four major markets across the state of Texas. With the entire staff of FIRST FEDERAL sharing our vision of distinctive quality and unparalleled customer service, we are headed for greater success.

Feel free to cut and paste

Goals, Values and Beliefs

In this area, you state what you expect of the employee and what the employee can expect of you; as well as the general philosophies of the company.

First Federal
EMPLOYEE HANDBOOK

Goals, Values and Beliefs

Our goal at FIRST FEDERAL is simple -- extraordinary customer service as we provide our customer's needs in the personal service industry. We accomplish this by taking over the tasks which interfere with an enjoyable, leisurely lifestyle; and by partnering with organizations who have the finest reputations for quality.

Our goals are accomplished by a commitment from every employee.

Our values and beliefs require that we:

Treat each employee with respect and give them an opportunity for input on how to continually improve our service goals.

Treat each employee fairly and with mutual respect. The Company does not tolerate discrimination of any kind and encourages all managers and supervisors to involve employees in problem solving and the creativity process. When problems arise, the facts should be analyzed to determine ways to avoid similar problems in the future.

Provide the most effective and efficient corrective action, to resolve customer service issues, to ensure our customers satisfaction and that the problem not be repeated in the future. In this way, we will not maintain our leadership position in the industry.

Foster an open door policy which encourages interaction, discussions and ideas to improve the work environment, thus increase our productivity.

Deliver competitive, impeccable service to our customers and, where required, partner our customers with vendors who share our mission vision.

Make "Do It Right The First Time" our commitment as a team and our only way of doing business. This commitment will assure continued growth and prosperity.

Feel free to cut and paste

This is a partial listing only, but it gives you the idea. The goals can include more specific long-
term goals, but if you do, make sure they aren't so specific that they become "stale" after one or two years.

The equal employment opportunity affirmation should also be included in or near the introduction to the handbook.

Employee Handbook: Equal Opportunity

This section provides a brief outline of your company's policy with respect to equal employment opportunity. Absence of the equal employment opportunity statement could send a message you do not intend. If you are required to have an affirmative action plan, mention it in this section. Don't include the full affirmative action plan in this section. Instead, refer employees to the separate handbook.

First Federal
EMPLOYEE HANDBOOK

Equal Opportunity

First Federal is an Equal Opportunity Employer. This means that we will extend equal opportunity to all individuals without regard for race, religion, color, sex, national origin, age, disability, handicaps or veterans status. This policy affirms FIRST FEDERAL's commitment to the principles of fair employment and the elimination of all vestiges of discriminatory practices that might exist. We encourage all employees to take advantage of opportunities for promotion as they occur.

After you complete the introduction, you will then begin to address the general employment policies of the company.

Employee Handbook: General Policies

There are a wide range of policies that you will want to consider for your company. Many of these policies have developed through the years as a result of litigation and new lawsuits raise new issues continuously. You may want to discuss some of these policies with your attorney to ensure that you are up to date.

In the next pages we'll cover many of the general employment policies. You can read through them one at a time, or turn to the index to find the policy that you are interested in.

PERSONAL INFORMATION

This example is self-explanatory.

First Federal
EMPLOYEE HANDBOOK

Personnel Records

It is important that the personnel records of FIRST FEDERAL be accurate at all times. In order to avoid issues or compromising your benefit eligibility or having W2's returned, FIRST FEDERAL expects that employees will promptly notify appropriate personnel representative of any change in name, home address, telephone number, marital status, number of dependents, or any other pertinent information which may change.

Feel free to cut and paste

The next page under general policies addresses employee attendance.

Employee Handbook: Attendance

Attendance policies are complicated by laws and regulations such as Family Medical Leave Act and the landscape in this area may soon change if comp time or other legislation is passed. In any case, it is a good idea to include a general statement about attendance -- you can use this policy to ensure there are no misunderstandings about attendance expectation.

First Federal
EMPLOYEE HANDBOOK

Attendance

Employees are expected to arrive at work before they are scheduled to start and be at their work station productively engaged in FIRST FEDERAL business by the scheduled start time. All time off must be requested in advance and submitted in writing, as outlined in the appropriate categories; except sick leave. See Sick Leave and other categories for specific details.

FIRST FEDERAL views attendance as one of the most important facets of your job performance review. All unapproved absences will be noted in the employee's personnel file. Excessive absences, including for Sick Leave, will result in disciplinary action, up to and including termination.

Feel free to cut and paste

The next page under general policies addresses the use of company property.

Employee Handbook: Use of Company Property

The example below is a fairly strict policy for the use of company equipment. You may want to permit "reasonable" use of telephones or computers, for example as long as it doesn't interfere with the business.

Personal computers require a new level of discipline, particularly with Internet access. Make sure that the Internet "research" that an employee is doing is related to the business and is authorized. With a small work force you will generally know if "surfing" is hurting productivity. With a large work force you may want to restrict Internet access or look into tracking software. Its not uncommon to see employees that install "pirated" or "borrowed" software on company computers -- don't allow this to happen, as the company could be held liable for violating license agreements.

First Federal

EMPLOYEE HANDBOOK

FIRST FEDERAL will provide you with the necessary equipment to do your job. None of this equipment should be used for personal use, nor removed from the physical confines of FIRST FEDERAL - unless it is approved and your job specifically requires use of company equipment outside the physical facility of FIRST FEDERAL.

Computer equipment, including laptops, may not be used for personal use - this includes word processing and computing functions. It is forbidden to install any other programs to a company computer without the written permission of the department head. These forbidden programs include, but are not limited to, games, online services, screen savers, etc. The copying of programs installed on the company computers is not allowed unless you are specifically directed to do so in writing by your supervisor.

The telephone lines at FIRST FEDERAL must remain open for business calls and to service our customers. Employees are requested to discourage any personal calls - incoming and outgoing - with the exception of emergency calls. No long distance calls are to be made on company phones which are not strictly business related.

Feel free to cut and paste

The next page under general policies addresses confidentiality.

Employee Handbook: Confidentiality

More and more companies are requiring employees to sign a confidentiality statement as a condition of employment so that there is no question as to the importance of this policy. The ease of access to information and the ease in which such information can be copied and distributed makes a business vulnerable to disclosure of confidential business information.

Some companies will include a description of information that they consider confidential (product pricing and cost information, formulas contract terms, all computer files, blueprints, employee names or addresses, to name but a few). The example shown below is a generic policy that may require additional

First Federal
EMPLOYEE HANDBOOK

Confidentiality

FIRST FEDERAL requires all employees to sign a confidentiality agreement as a condition of employment, due to the possibility of being privy to information which is confidential and/or intended for the company use only. All employees are required to maintain such information in strict confidence. This policy benefits you, as an employee, by protecting the interests of The Company in the safeguard of confidential, unique and valuable information from competitors or others.

Should an occasion arise in which you are unsure of your obligations under this policy, it is your responsibility to consult with your reporting manager. Failure to comply with this policy could result in disciplinary action, up to and including termination.
Feel free to cut and paste

Companies that provide professional services such at the development of computer programs, commercial art, etc. may want to develop a policy that addresses ownership rights of any material developed using company resources and/or time. Similarly, companies that conduct research and development will want to address this issue. Due to the complexity of trademark, copyright and patent laws, you should contact your attorney for assistance with this policy.

The next page under general policies addresses dress codes.

Employee Handbook: Dress Code

The requirement for a dress code will vary by company and from job-to-job within a company. Companies that require uniforms or special safety clothing will generally describe their requirements in such a policy. Companies with employees that are in contact with customers will generally set forth standards of dress, hygiene and attitude.

First Federal
EMPLOYEE HANDBOOK

Dress Code

As an employee of FIRST FEDERAL, we expect you to present a clean and professional appearance when you represent us, whether that is in, or outside of, the office. Management, sales personnel and those employees who come in contact with our public, are expected to dress in accepted corporate tradition. A specific list of suggested do's and definite don'ts, including a specific definition of business casual, is available from your personnel representative and will be posted in each work area.

It is just as essential that you act in a professional manner and extend the highest courtesy to co-workers, visitors, customers, vendors and clients.

A cheerful and positive attitude is essential to our commitment to extraordinary customer service and impeccable quality.

Feel free to cut and paste

The next page under general policies addresses safety and accident rules.

Employee Handbook: Computer Usage

First Federal
EMPLOYEE HANDBOOK

Computer Policy

Introduction

Access to modern information technology is essential to First Federal's mission of providing customer service of highest quality. The pursuit and achievement of First Federal's mission requires that the privilege of the use of computing systems and software, internal and external data networks, as well as access to the World Wide Web, be made available to employees. The preservation of that privilege for the full community requires that each authorized user comply with institutional and external standards for appropriate use.

To assist and ensure such compliance, First Federal establishes the following policy.

General Principles

1. Authorized use of First Federal -owned or operated computing and network resources shall be consistent with the mission of First Federal and consistent with this policy.

2. Authorized users of First Federal computing and network resources include those authorized by management.

3. This policy applies to all First Federal computing and network resources, including host computer systems, First Federal-
sponsored computers and workstations, software, data sets, and communications networks controlled, administered, or accessed directly or indirectly by First Federal computer resources or services, employees, or students.

4. The First Federal reserves the right, upon reasonable cause for suspicion, to access all aspects of its computing systems and networks, including individual login sessions to determine if a user is violating this policy o r state or federal laws.

User Responsibilities

Privacy: No user should view, copy, alter or destroy another's personal electronic files without permission (unless authorized or required to do so by law or regulation).

Copyright: Written permission from the copyright holder is required to duplicate any copyrighted material. This includes duplication of audio tapes, videotapes, photographs,

Illustrations, computer software, and all other information for any purpose. Most software that resides on First Federal computing network(s) is owned by First Federal, or third parties, and is protected by copyright and other laws, together with licenses and other contractual agreements. Users are required to respect and abide by the terms and conditions of software use and redistribution licenses. Such restrictions may include prohibitions against copying programs or data for use on First Federal computing network(s) or for distribution outside the company; against the resale of data or programs, or the use of them for financial gain; and against public disclosure of information about programs (e.g., source code) without the owner's authorization.

Harassment, Libel and Slander: No user may, under any circumstances, use First Federal computers or networks to libel, slander, or harass any other person.

Access to Computing Resources:

Sharing of access: Computer accounts, passwords, and other types of authorization are assigned to individual users and should not be shared with others. You are responsible for any use of your account. If an account is shared or the password divulged, the holder of the account will lose all account privileges and be held personally responsible for any actions that arise from the misuse of the account.

Permitting unauthorized access: You may not run or otherwise configure software or hardware to intentionally allow access by unauthorized users.

Termination of access: When you cease being a employee of First Federal or if you are assigned a new position and/or responsibilities, your access authorization must be reviewed. You must not use facilities, accounts, access codes, privileges or information for which you are not authorized in your new circumstances.

Circumventing Security: Users are prohibited from attempting to circumvent or subvert any system's security measures. Users are prohibited from using any computer program or device to intercept or decode passwords or similar access control information.

Breaching Security: Deliberate attempts to degrade the performance of a computer system or network or to deprive authorized personnel of resources or access to any First Federal computer or network is prohibited. Breach of security includes, but is not limited to, the following: Creating or propagating viruses. Hacking. Password grabbing. Disk scavenging.

Abuse of Computer Resources: Abuse of First Federal computer resources is prohibited and includes, but is not limited to:

Game Playing: Computing and network services are not to be used for recreational game playing.

Chain Letters: The propagation of chain letters is considered an unacceptable practice by First Federal and is prohibited.

Unauthorized Monitoring: A user may not use computing resources for unauthorized monitoring of electronic communications.

Flooding: Posting a message to multiple list servers or news groups with the intention of reaching as many users as possible is prohibited.

Private Commercial Purposes: The computing resources of First Federal shall not be used for personal or private commercial purposes or for financial gain.

Political Advertising or Campaigning: The use of First Federal computers and networks shall not be used for political purposes

Limitations on Users' Rights

1. The issuance of a password or other means of access is to assure appropriate confidentiality of First Federal files and information and does not guarantee privacy for personal or improper use of university equipment or facilities.

2. First Federal provides reasonable security against intrusion and damage to files stored on the central facilities. First Federal also provides some facilities for archiving and retrieving files specified by users, and for recovering files after accidental loss of data. However, First Federal is not responsible for unauthorized access by other users or for loss due to power failure, fire, floods, etc. First Federal makes no warranties with respect to Internet services, and it specifically assumes no responsibilities for the content of any advice or information received by a user through the use of [campus'] computer network.

3. Users should be aware that First Federal computer systems and networks may be subject to unauthorized access or tampering. In addition, computer records, including e-mail, are considered "records" which may be accessible to the public under the law.

Sanctions

Violators of this policy will be subject to the existing student or employee disciplinary procedures of First Federal. Sanctions may include the loss of computing privileges. Illegal acts involving First Federal computing resources may also subject users to prosecution by state and federal authorities.
Feel free to cut and paste

Employee Handbook: Safety and Accident Rules

Generally the safety section of the employee handbook will refer to other documents and information. It is important if you refer to safety posters, Emergency Procedures, or safety equipment, that you have these items available for use by the employees. It is also a good idea to have periodic training for employees on the use of safety equipment, office safety, escape routes. If you are a tenant in a large building, you can probably coordinate with the building manager and hold periodic fire drills. If not, check with your local fire department and get them to help out or provide you information to get this started.

First Federal
EMPLOYEE HANDBOOK

Safety and Accident Rules

Safety is a joint venture at FIRST FEDERAL. FIRST FEDERAL provides a clean, hazard free, healthy, safe environment in which to work in accordance with the Occupational Safety and Health Act of 1970. As an employee, you are expected to take an active part in maintaining this environment. You should observe all posted safety rules, adhere to all safety instructions provided by your supervisor and use safety equipment where required. Your work place should be kept neat, clean and orderly.

It is your responsibility to learn the location of all safety and emergency equipment, as well as the appropriate safety contact phone numbers. A copy of the Emergency Procedures will be kept in each work area on top of the supervisor's desk.

All safety equipment will be provided by FIRST FEDERAL, and employees will be responsible for the reasonable upkeep of this equipment. Any problems with or defects in, equipment should be reported immediately to management.

As an employee, you have a duty to comply with the safety rules of FIRST FEDERAL, assist in maintaining the hazard free environment, to report any accidents or injuries - including any breaches of safety - and to report any unsafe equipment, working condition, process or procedure, at once to a supervisor.

Employees may report safety violations or injuries anonymously to the Safety Committee, if they are not the injured or violating party. NO EMPLOYEE WILL BE PUNISHED OR REPRIMANDED FOR REPORTING SAFETY VIOLATIONS OR HAZARDS. However, any deliberate or ongoing safety violation, or creation of hazard, by an employee will be dealt with through disciplinary action by FIRST FEDERAL, up to and including termination.

All work related accidents are covered by Worker's Compensation Insurance pursuant to the laws of the various states in which we operate.

The next page under general policies addresses anti-substance abuse.

Employee Handbook: Anti-Substance Abuse

Drug or alcohol abuse can be a serious or even dangerous problem in the workplace. It is a good idea to clearly state your policy, requirements for testing and disciplinary process that will be followed. Due to the medical and legal issues involved, the complete Anti-Substance Abuse Policy may be quite lengthy and technical. Accordingly, as in the following example you may want to outline the policy and then refer to the complete document for further information.

First Federal
EMPLOYEE HANDBOOK

Anti-Substance Abuse

FIRST FEDERAL takes seriously the problem of drug and alcohol abuse, and is committed to provide a substance abuse free work place for its employees. This policy applies to all employees of FIRST FEDERAL, without exception, including part-time and temporary employees.

No employee is allowed to consume, possess, sell or purchase any alcoholic beverage on any property owned by or leased on behalf of FIRST FEDERAL, or in any vehicle owned or leased on behalf of FIRST FEDERAL. No employee may use, possess, sell, transfer or purchase any drug or other controlled substance which may alter an individuals- dual's mental or physical capacity. The exceptions are aspirin or ibuprofen based products and legal drugs which have been prescribed to that employee, which are being used in the manner prescribed.

FIRST FEDERAL will not tolerate employees who report for duty while impaired by use of alcoholic beverages or drugs.

All employees should report evidence of alcohol or drug abuse to a supervisor or a personnel representative immediately. In cases where the use of alcohol or drugs pose an imminent threat to the safety of persons or property, an employee must report the violation. Failure to do so could result in disciplinary action for the non-reporting employee.

Employees who violate the Anti-Substance Abuse Policy will be subject to disciplinary action, including termination. It is our policy at FIRST FEDERAL to assist employees and family members who suffer from drug or alcohol abuse. You may be eligible for a medical leave of absence, and we encourage any employee with a problem to contact your personnel representative for details.

As a part of our policy to ensure a substance abuse free workplace, FIRST FEDERAL employees may be asked to submit to a medical examination and/or clinically tested for the presence of alcohol and/or drugs. Within the limits of federal and state laws, we reserve the right, at our discretion, to examine and test for drugs and alcohol. Some such situations may include, but not be limited, to the following:

All employees who are offered employment with FIRST FEDERAL;

Where there are reasonable grounds for believing an employee is under the influence of alcohol or drugs;

As part of an investigation of any accident in the workplace in which there are reasonable grounds to suspect alcohol and/or drugs contributed to the accident;

On a random basis, where allowed by statue;

As a follow-up to a rehabilitation program, where allowed by statute;

As necessary for the safety of employees, customers, clients or the public at large, where allowed by statute; and

When an employee returns to duty after an absence other than from accrued time off such as vacation or sick leave.

This is only a summary of FIRST FEDERAL's Anti-Substance Abuse Policy. You have been provided, and are required to read, the full policy. The full policy goes into greater detail and includes such subjects as definitions, testing methods, consequences of testing refusal, confidentiality, rights of employees and The Company, appeal procedures, notice of applicable statutes, voluntary assistance, etc. It is your responsibility to obtain a copy from your personnel representative if one has not been provided to you. You will be required to sign a consent form agreeing to FIRST FEDERAL's Anti-Substance Abuse Policy in full.

It is a condition of your continued employment with FIRST FEDERAL that you comply with the Anti-Substance Abuse Policy. NOTHING IN THE ANTI-SUBSTANCE ABUSE POLICY SHALL BE CONSTRUED TO ALTER OR AMEND THE AT-WILL EMPLOYMENT RELATIONSHIP BETWEEN FIRST FEDERAL AND ITS EMPLOYEES.
Feel free to cut and paste

The next page under general policies addresses sexual harassment.

Employee Handbook: Sexual Harassment

Recent litigation against businesses makes it essential for most companies to adopt a policy against sexual harassment. More importantly it is important for company personnel to know how to respond to a complaint of sexual harassment by conducting an investigation or in some instances hiring an attorney to conduct an investigation.

The following is an example of one company's sexual harassment policy:

First Federal
EMPLOYEE HANDBOOK

Sexual harassment

FIRST FEDERAL Corporation will not, under any circumstances, condone or tolerate conduct which may constitute sexual harassment on the part of its management, supervisors or non-management personnel. It is our policy that all employees have the right to work in an environment free from any type of illegal discrimination, including sexual harassment. Any employee found to have engaged in such conduct will be subject to immediate discipline up to and including discharge.

Any employee found to be engaged in the conduct of sexual harassment will be subject to immediate discipline up to and including discharge.

Sexual harassment is defined as:

Making submission to unwelcome sexual advances or requests for sexual favors a term or condition of employment;

Basing an employment decision on submission or rejection by an employee of unwelcome sexual advances, requests for sexual favors or verbal or physical contact of a sexual nature;

Creating an intimidating, hostile or offensive working environment or atmosphere either by

a)	verbal actions, including calling employees by terms of endearment; using vulgar, kidding or demeaning language; or

b)	physical conduct which interferes with an employee's work performance.

We, at FIRST FEDERAL, do encourage healthy fraternization among its employees; however, employees, especially management and supervisory employees, must be sensitive to acts of conduct which may be considered offensive by fellow employees and must refrain from engaging in such conduct.

It is, also, expressly prohibited for an employee to retaliate against employees who bring sexual harassment charges or assist in investigating charges. Retaliation is a violation of this policy and may result in discipline, up to and including termination. No employee will be discriminated against, or discharged, because of bringing or assisting in the investigation of a complaint of sexual harassment.
Feel free to cut and paste

The above policy does not address the investigation process that will be followed in the event of a complaint. Normally, this policy would be beyond the scope of the employee handbook. However, many of the losses incurred by companies in these cases were the result of reported complaints that were not acted upon by the company. Thus, employers should be aware of the investigation process, and provide formal training to personnel staff and supervisors when applicable. Further reading on the investigation process.

The next page under general policies addresses smoking.

Employee Handbook: Smoking

This is a good idea considering the current health consciousness environment and recent reports on second hand smoke.

First Federal
EMPLOYEE HANDBOOK

Smoking

FIRST FEDERAL endeavors to provide a healthy environment, therefore prohibits any form of tobacco consumed in company buildings. Additionally, no smoking is allowed within ten (10) feet of exterior entranceways.

Feel free to cut and paste

The next page under general policies addresses performance reviews.

Employee Handbook: Performance Reviews

Conducting performance reviews with employees is an essential element of the growth and development of the employee and the company. Providing effective performance reviews requires skill and experience. The Employee handbook does not describe the process, but it does address when the reviews should be expected by the employee.

First Federal
EMPLOYEE HANDBOOK

Job Objectives, Performance Reviews, Salary Reviews

Within one week of employment, job change or promotion, every employee will be given job objectives which detail the requirements and expectations of the position for which the employee was hired. FIRST FEDERAL will measure your job performance against these objectives. After every evaluation, job objectives will be redated and reviewed, if no changes are made; or rewritten as appropriate. In either case, the reporting supervisor review and discuss the objectives with the employee and the employee will sign a statement indicating agreement with, and understanding of, these objectives.

Performance reviews are normally conducted every six (6) months from the date of hire, with the exception of a three month review at the end of your probationary period. All performance reviews are based on merit, achievement, job description fulfillment and performance at your position.

Wage increases will be based upon this review, as well as past performance improvement; dependability; attitude; cooperation; any necessary disciplinary action; adherence to all employment policies; and your position in your salary range. Your reporting supervisor will review and discuss your salary range and your position within that range during your performance reviews. When you are promoted to a higher level position, you are automatically eligible for an increase as dictated by the salary range of that position.

In the event you have to terminate an employee, the performance review process is an essential ingredient in protecting your company and preserving the dignity of the employee. Make sure you are familiar with effective termination techniques if the performance review could lead to disciplinary action or separation.

The next page under general policies addresses employment categories.

Employee Handbook: Employment Categories

If your company has a variety of employment categories, it is a good idea to outline them in your handbook so that there is no misunderstanding. Many companies offer benefits based on employment category (where allowed by laws and regulations). For example, part-time employees may not be eligible for group insurance, paid vacation, and other benefits.

Note that detailed job descriptions do not normally belong in the employee handbook. It is a good idea however to provide the new employee with a copy of the job description for her position so that expectations and development goals are well-defined.

First Federal
EMPLOYEE HANDBOOK

Employment Categories

Permanent Full-Time is an employee who has no termination date and who is regularly scheduled to work 37.75 to 40 hours per week.

Permanent Part-Time is an employee whose position has no termination date and who is scheduled to work 20 or more hours, but less than 37.75 hours per week.

Temporary Full-Time is an employee who is hired or promoted for certain length of time and who is scheduled to work 37.75 hours per week.

Temporary Part-Time is an employee who is hired or promoted for a certain length of time and who is scheduled to work 20 hour or more, but less than 37.75 hours per week.

Feel free to cut and paste

You may also need to cover the difference between exempt and non-exempt positions. Be sure too that you know the difference between independent contractors and employees.

The next page under general policies provides a partial list of more policies to consider.

Employee Handbook: General Policies

There are other general issues which you may, or may not, want to include in your employee handbook. Include any policies which you want to call to the employees attention at the time of initial employment. Other policy issues may include employment verification requests from outside sources, breaks, job posting program, adverse weather instructions, solicitation guidelines, whistle blower protection, among others, as your needs dictate.

Employee Handbook: Compensation and Benefits

This section outlines all the benefits offered by the company and the details on how benefits are administered. Salary and benefits are rarely discussed in the interview; and after hire, benefits are not fully discussed until a formal personnel meeting days or weeks later. But, it's safe to say, it is very important, if not the most important, issue for new employees.

It should include all payroll related items such as compensation, auto-direct, savings plans, 401(k) plans, expense reimbursement insurance, time cards and overtime pay. Paid holidays, vacation, sick days, personal leave, maternity leave and tuition assistance are included in this section. The time frame for an employee to qualify for all benefits should be spelled out here as well.

You should make certain that your expectation is clear should flexibility be required on rescheduling hours, if there are periods when overtime (paid or not) may be a given, and that you do not commit to overtime on a seniority basis. The handbook should clearly state that vacation scheduling cannot interfere with the needs of any individual department. Also be clear on sick time requirements - how much advance notice? (i.e. at least four hours prior to shift start? Promptly at 8:00 Am.?) Proof of illness? (and ramifications for abuse). If employees are allowed to clock in too soon or too late, it could result in your being liable for overtime pay in case of conflict or dispute.

The following pages include examples of categories and descriptions which would fit under the compensation and benefits section of your employee handbook. Not all exist in every handbook, and which you include depends upon the needs of your company.

The next page under compensation and benefits policies addresses payroll.

Employee Handbook: Payroll

It's a good idea to outline payroll processing options, if any such as direct deposit, as well as pay periods (weekly, bi-weekly, 24 or 26 pay periods per year). In some companies hourly employees are paid on a different cycle than salaried employees and this should be addressed in the handbook to minimize confusion.

First Federal
EMPLOYEE HANDBOOK

Payroll

FIRST FEDERAL employees are paid bi-weekly.

Our payroll process includes: Direct Deposit

While an employee can certainly have his/her actual pay check delivered direct to their desk each pay period, FIRST FEDERAL provides, and encourages, direct deposit of paychecks. This is a service which saves you time and provides added security. With this option, each paycheck will be automatically deposited to your checking or savings account (or divided between the two) as your direct. Each pay day, you still receive a pay stub for your records -- much like a voided check with all the same information which would appear on your regular check -- except the face of the check is voided. No trips to the bank are necessary because your salary appears in your bank account on payday, or in some cases the night before. Direct Deposit will be initiated one pay period following the receipt of the signed authorization form from the employee.

Payroll Deductions

As required by law, FIRST FEDERAL will deduct Federal Social Security and Income Tax from your payroll check each pay period. Group Insurance premiums for eligible employee and dependent family members will be deducted from payroll check each pay period, once the employee completes the appropriate authorization forms.
Feel free to cut and paste

The next page under general policies addresses work hours and reporting.

Employee Handbook: Work hours and reporting

The example below shows a policy for a company with both hourly and salaried employees and employees that are required to use a time clock. Overtime is addressed in this policy -- be sure you are familiar with the labor laws that cover overtime pay requirements.

First Federal
EMPLOYEE HANDBOOK

Work hours and reporting

Workday

The normal workday is eight (8) hours for non-exempt, with 40 hours being a normal work week. Exempt employees generally work the same hours, but may be required to work more hours as the work dictates. While you are generally expected to work the number of hours stated above, First Federal does not guarantee that you will actually work that many hours in any given day or week (or to be paid for such hours if you do not work that many hours).

Overtime work is only performed when necessary and approved in advance by your department head. You are expected to work necessary overtime when requested to do so, and non-exempt employees will receive time and one-half pay for time worked exceeding 40 hours in any given work week. Full time employees will be paid double time for hours worked on a company holiday, if they are not scheduled to work on that holiday. Part-time employees will be paid one and one-half times the regular rate of pay for working on a company holiday. Exempt employees are not entitled to overtime pay. All overtime payments will be made in the pay period following the period the overtime was worked.

Time Clock and Time Cards

Where applicable, First Federal employees must punch in before beginning their work shift and punch out at the end of their shift. All such employees are expected to work their entire shift. Any such employee punching five (5) minutes late will be docked fifteen (15) minutes of pay, or punches out later than the time their scheduled shift ends, without prior authorization, will be paid for the scheduled time only. Any digression from the above requirements could result in a reprimand to the employee.

You are not allowed to punch the time clock of another employee. Should your time card be incorrectly punched, for any reason, your supervisor will note the correct start and/or end time, and initial the correction. All time cards must be approved by your supervisor.

For employees required to complete time cards, the cards must be filled out with all hours worked and turned into your supervisor every other Friday as designated by First Federal, by 9:30 A.M. Vacations days, sick days, holidays, and absences such as jury duty, funeral leave or military training, must be specifically noted on the time cards for days on which they occur. Vacation and holidays should be counted as full work days. All time cards must be approved and signed by your supervisor prior to being sent to personnel.

Feel free to cut and paste

Make sure that your description of work hours and time reporting is consistent with your Attendance Policy.

The next page under compensation and benefit policies covers holidays.

Employee Handbook: Holidays

We all look forward to holidays and special events. Don't spoil them for your employees by failing to determine the days that you will recognize as holidays and defining how they will be paid for them. If you provide "unpaid" holidays, make sure that this is clearly explained.

The example below includes "floating holidays" -- but remember to add these benefits only as your small business can afford them.

First Federal
EMPLOYEE HANDBOOK

Holidays

FIRST FEDERAL RECOGNIZES THE FOLLOWING HOLIDAYS: NEW YEARS DAY, GOOD FRIDAY, MEMORIAL DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING, CHRISTMAS AND TWO FLOATING HOLIDAYS.

When a holiday falls on a weekend, First Federal will designate the Friday preceding or Monday following as the observed holiday at the discretion of The Company. Regular full-time employees are paid eight (8) hours for each holiday, regular part-time employees are paid for holidays based upon the number of hours they are normally scheduled. Temporary employees are not paid for holidays, unless they are specifically requested to work on the designated holiday (see Overtime).

The two (2) floating holidays are available to all full-time employees beginning the first of January following the employees first anniversary. Once eligible, the floating holiday are available annually. Floating holidays must be scheduled with, and approved, by your supervisor at least three

(3) weeks in advance of the requested date, and may not be taken consecutively. Floating holidays may not be carried forward to be used in the following year.

Feel free to cut and paste

The next page under compensation and benefits policies addresses vacations.

Employee Handbook: Vacation

Your vacation policy should define who is eligible for vacations, the rate at which vacation accrues (service requirements) and carryover policy, if applicable. In addition, it should address what happens to unused vacation in the event of separation from the company.

Some companies require that employees request their vacation well in advance of taking time off and if so, this should also be addressed in your policy.

First Federal
EMPLOYEE HANDBOOK

Vacation

After December 31st, FIRST FEDERAL full-time employees are entitled to one paid day of vacation for each month or partial month of service during the previous year, up to a maximum of 10 working days during the first five (5) years. Part-time employees will receive prorated paid vacation hours based on the regular number of hours worked against an eight (8) hour work day.

Example: If you started work on June 16, 1997, you are entitled to seven (7) vacation days in 1998. Each calendar year succeeding the first year of service, FIRST FEDERAL employees receive ten (10) vacation days per year, earned on a monthly basis. In January following the fifth (5th) year of service, employees receive fifteen (15) vacation days, credited monthly, based on a twelve month calendar. In January, following the tenth (10th) year of service, each employee receives twenty (20) vacation days.

Example: The same employee who started on June 16, 1997, is entitled to ten (10) days in 1999 and twenty (20) days in 2008.

Vacation is earned and credited on January 1st of each year, is available for use after March 31st for vacation credited for the current year; and available immediately for vacation carried over from the previous year. Only up to five (5) days of vacation may be carried over into the next year.

A vacation schedule of all employees is to be completed for each department or location, by January 31st of each year, Changes may be made to the schedule with three weeks notice and the approval of the supervisor of the department. The vacation request change must be submitted in writing to the supervisor three weeks prior to the anticipated vacation date.

Every effort will be made by FIRST FEDERAL to accommodate vacation requests, unless business circumstances do not permit. Vacation may be taken in full or half days only.

Employees who resign in good standing and give proper notice of termination, are entitled to receive payment for accrued vacation, not yet taken. If the employee has taken more vacation than actually accrued at the time of resignation, the unearned vacation will be deducted from the employee's final pay check. Employees who terminate with less than 6 months service are not eligible to be paid for accrued vacation.
Feel free to cut and paste

Vesting requirements for vacation policies can be confusing, so it is a good idea to include examples help illustrate your company practices.

The next page under compensation and benefit policies addresses sick leave. Other policies you might add include:

Family and Medical Leave
If FMLA applies to your business, you may need professional help to review or write any policy dealing time away from work.

Maternity Leave

Funeral Leave

Jury Duty

Military Service

Group Insurance Benefits
Make a summary reference to your insurance benefits and eligibility, then refer the employee to the detail in a separate benefits handbook.

Employee Handbook: Short-term Disability

Short-term disability benefits are designed to provide a paycheck to employees during periods of serious illness resulting in total disability. Many companies offer optional long-term disability insurance (often paid by the employee), and short-term disability insurance covers the employee during the "gap" between the two insurance policies.

First Federal
EMPLOYEE HANDBOOK

Short-term Disability

Short term disability (STD) benefits provide income continuation during periods of serious illness resulting in total disability. You are "totally disabled" if you are unable to perform your job due to major illness or accidental bodily injury. FIRST FEDERAL employees bear no cost for this plan benefit which provides up to 180 days of short term disability benefits within a twelve-month period.

The employee's total disability period must exceed ten (10) consecutive working days to qualify for STD benefits; and all Sick Leave benefits must be exhausted before an employee can request STD benefits. Once the initial ten (10) day waiting period is met, STD benefits will be retroactive to the first unpaid day of absence (if sick leave benefits are exhausted).

Regular full-time and regular part-time employees of FIRST FEDERAL are eligible for this benefit once they have completed ninety (90) calendar days of service and work at least thirty (30) days per week on a regular basis.

Under STD benefits, eligible employees are paid 80% of their normal base salary. This means the employee will be paid based upon your regular rate of pay excluding overtime, bonus, vacation, and any other accrued paid leave or additional compensation. STD benefits may not exceed 80% of your base salary, unless augmented by available accrued vacation. If additional payments from worker's compensation or state disability, while you are on STD benefits, increase your overall benefits to exceed 80%, your STD benefits will be reduced accordingly.

Group health benefits will continue on the same basis as prior to the onset of STD benefits. STD benefits will be subject to all payroll withholding elections of the employee which were in effect prior to the short term disability.

It is important that an employee provide their supervisor with the treating doctor's statement as soon as you know an illness or injury will result in an absence greater than ten (10) days. The doctor's statement must identify the nature of your disability and the date you are expected to be able to return to work. FIRST FEDERAL may require a second medical opinion, at its own expense, and periodic recertification s. If there are discrepancies in the first and second opinions, we may require a third doctor to render a medical opinion. This third doctor will be selected jointly by FIRST FEDERAL and the employee, and the third opinion will be binding both on us and the employee.

Upon returning to work, you must provide a release, or return to work form, from the doctor treating your illness or injury.
Fee free to cut and paste

Companies with 15 or more employees are subject to the American's with Disabilities Act (ADA). If you have an employee on disability and she is able to perform the essential functions of the job, some of the provisions of this law may apply. Further reading on ADA is found on numerous resources on the WWW or consult with your insurance company or legal counsel.

The next page under compensation and benefit policies covers continuation of medical benefits (COBRA).

Employee Handbook: Continuation of Medical/COBRA

Companies with 20 or more employees are subject to COBRA laws, and must provide continuation of medical/health plans to eligible employees. The employee must pay the medical/health insurance premiums after separation from the company. In the employee handbook you should make reference to COBRA, if it is applicable to your company. A complete description of this benefit is usually not provided to an employee until termination (as required by the law).

First Federal
EMPLOYEE HANDBOOK

Continuation of Medical/COBRA

Upon termination from FIRST FEDERAL for any reason other than gross misconduct, an employee may elect to continue group medical coverage at group rates as long as the employee pays the required monthly premium. It is also possible to convert other group plans to individual plans. Details on the conversion of any benefits will be discussed with you at the time of your termination by a personnel representative. You may, of course, request information on this subject at any time prior to actual termination.
Feel free to cut and paste

The next page under compensation and benefit policies covers worker's compensation.

Employee Handbook: Worker's Compensation

Worker's Compensation laws vary from state to state. Many states require that businesses carry worker's compensation insurance. Check with your state or local work force commission or agency for details. This policy should be discussed with your insurance provider, if applicable or with your legal council.

The example shown below is for a company with required insurance coverage.

First Federal
EMPLOYEE HANDBOOK

Worker's Compensation

Employees who are injured on the job at FIRST FEDERAL are covered by Worker's Compensation Insurance. It is your responsibility to immediately notify your immediate supervisor - or in the absence of your supervisor, the next available supervisor - of any injuries you sustain while on the job at FIRST FEDERAL.

This supervisor will notify your personnel representative. We encourage injured employees to seek immediate medical attention. All medical expenses related to the treatment of an injury, sustained on the job, are paid in full direct to the medical providers. After a specified waiting period, you are also eligible for disability payments set forth by state law, where necessary.

The Worker's Compensation plan is administered by a separate insurance company who will be notified by your personnel representative. You will be contacted by a representative of the administering company. Information on the current company administering this plan will be provided to you by your personnel representative and is available on posters displayed in your work area. Additional information on Worker's Compensation Insurance is available through the Personnel office.
Feel free to cut and paste

The next page under compensation and benefit policies covers retirement plans.

Employee Handbook: Retirement Plans

Many small businesses overlook retirement planning for themselves and don't think that they can afford them for their employees. Retirement plans can be a great benefit for both you and your employee, and there are low-cost options available for small businesses. If you're considering one, you'll need professional help to help you evaluate alternatives and set up this benefit for your company.

If you do have a retirement plan, your company handbook will briefly describe it and then refer the employee to the plan documents.

The company in the example below has a 401(k) plan and matches a percentage of the employee's contribution.

First Federal
EMPLOYEE HANDBOOK

Retirement Plans

FIRST FEDERAL employees have the opportunity to participate in a retirement plan which allows employees to save a portion of their compensation for retirement. After one year of service, employees are eligible to participate in the plan. Contributions to this plan are pre-tax dollars, which means the amount specified by the employee is taken from his/her salary before federal income is taken out. The employee is then taxed on the remaining salary, resulting in additional savings. It should be noted that any distribution from the 401(k) plan will be subject to tax, whether that be early or qualified distribution. Early distribution may also carry a monetary penalty. See your personnel representative for more details and a copy of the FIRST FEDERAL Employee Savings Plan.

Contributions by the company are based on the amount contributed by the employee, with FIRST FEDERAL matching 30% of the employee's contribution. As with employee contributions, taxes on company contributions and their related earnings, are deferred until distribution from the plan. Company contributions are not fully vested to the employee until after a five year period; employee contributions are fully vested from the time of contribution.

Employees are urged to seek advice from a financial expert prior to any distribution from the 401(k) plan. FIRST FEDERAL also contributes to the 401(k) for employees participating in this plan.
Feel free to cut and paste

The next page under compensation and benefit policies covers tuition assistance.

Employee Handbook: Tuition Assistance

Offering tuition assistance is an excellent way to support the growth of your employees and your company's knowledge base.

First Federal
EMPLOYEE HANDBOOK

Tuition Assistance

It is our belief that education leads to self improvement which improves the value of the employee to FIRST FEDERAL. In that vein, we encourage higher education to prepare employees for greater responsibility within The Company. FIRST FEDERAL will pay for courses which are directly related to your present job or which will help you prepare for more responsibilities or promotions. All courses must be approved by your supervisor and your personnel representative, who can provide more specific information on courses covered by this plan. Only employees working thirty (30) regular hours or more per week are eligible.

The plan reimburses expenses for any approved course started after your full-time employment with FIRST FEDERAL begins, but reimbursement of expenses will not begin until you have completed six (6) months of full-
time employment. Courses and seminars, and related fees, books and materials, directly related to the general and customer service industry are reimbursed to eligible employees at 100%. Tuition for courses taken to complete an approved business degree is also reimbursed at 100%, except that related fees, and costs of books and materials are not covered.

To qualify for reimbursement, the employee must successfully complete the course or seminar with a grade of "C" or better; or where applicable, obtain a completion certificate.

The maximum reimbursement amounts are $3,000 per year for courses in a degreed program, and $1,500 per year for all other courses or seminars.

Contact your personnel representative for proper request forms. These forms must be completed and reviewed by your supervisor, and the Personnel Director, at least 10 business days prior to your enrollment in any course or seminar.
Feel free to cut and paste

The next page under compensation and benefit policies covers employee assistance programs.

Employee Handbook: Employee Assistance Program

Many companies have established Employee Assistance Plans (EAPs) to help employees recognize and deal with problems that impact their lives. EAPs are generally administered by professional companies in a confidential manner. The services offered by an EAP vary greatly and can be customized to meet the needs of the employer and its employees.

First Federal
EMPLOYEE HANDBOOK

Employee Assistance Program

We encourage our employees to seek assistance, as needed, from qualified professionals. When personal problems and difficulties are identified and appropriately treated in their early stages, the likelihood of a successful outcome is improved. Our Employee Assistance Program (EAP) helps employees deal with problems in a confidential and safe environment.

Should you require assistance with any problem which is impacting your personal and/or professional life, we encourage you to call.

The confidential number is 1-800-555-5555.

These calls are not monitored and are manned by a privately owned counseling referral service. We, at FIRST FEDERAL, will never be aware of your contact to this service, nor will any reports on your contact or treatment be forwarded to us.

All contact and sessions are strictly confidential. Should visits exceed four (4) times per month consecutively in a three (3) month period, the counselor may refer you to a private therapist or counselor which would be covered under your group benefits.

We cannot stress enough, that if you feel the need for counseling, we strongly encourage that you seek assistance.
Feel free cut and paste

The next page under compensation and benefit policies covers other benefits that you might consider for your company.

Employee Handbook: Other Benefits

We have covered numerous subjects, some of which may not be useful for your organization. In addition to what is outlined above, other subjects which may be covered in detail or as little informational blurbs are:

Employee Referral Programs
Cash awards may be given to employees for recruiting new employees. The company decides on amount of award and service time new employees must put in prior to referring employee collecting on award.

Idea Incentive Awards
Encourages employees to submit ideas which could save your company or increase efficiency. Your company would provide a scale on which the employee would be paid upon implementation of the idea, if it is projected to save money over the long run; or in a lump sum if it is a one time economizer. Or whatever calculation, or combination thereof, works for your organization.

Service Commendations
Employees are awarded an appropriate gift at fifth anniversary and every five years thereafter in appreciation for their service in helping your company achieve it's goals. Gifts range from writing instruments and watches to luggage and diamonds.

Employee Purchases

In this section you set forth your policy for employees purchasing any goods manufactured by your company; as well as any equipment or supplies which your company is disposing of.

Annual Physical Examinations
With a mind toward healthy employees being productive employees, some companies encourage yearly physical exams by reimbursing up to $200 of the necessary expense charged by a licensed general medicine physician to perform the exam. You will need to decide the eligibility requirements and the service time threshold for eligibility, as well as the type of paperwork and personnel to be involved.

There may be other benefits or plans which your company offers your employees. Your decision on how detailed to get on each topic will depend upon the weight each carries. Just try to be as clear as possible, making certain to refer the employees to more appropriate, detailed documents where necessary. It is probably better to err on the side of covering many topics briefly, while making certain that compensation and benefits are covered in detail, than to leave something out. Your employees want to - and should - know these things. Many times, they would prefer to review it for themselves rather than asking or before inquiring further.