An Employee Handbook provides a means of reference for both employees and employers to look to when a question or issue arises. However, many companies, particularly small business, do not have any or create it as an afterthought, when a dispute has already occurred. Hence, Singapore company registration specialist Rikvin has today published a guide on drafting an Employee Handbook.
“In spite of its benefits, the process of drafting the employee handbook is often an afterthought, when an employee-employer dispute has already taken place. However, it is more prudent to have it in place early in the setup stages and avoid potentially costly errors that could undermine the interests and image of a business,” explained Ms Christine Lim, General Manager of Rikvin.
It is more prudent to have it in place early in the setup stages and avoid potentially costly errors that could undermine the interests and image of a business.
“We launched this service because we recognize the role of morale in the success of a business. Although drafting an Employee Handbook requires time and effort, having it in place is important for establishing the work expectations, benefits and responsibilities of the company and the staff. A properly-drafted handbook sets the tone of the company culture, which in turn could boost the morale of employees, and ultimately resulting in a more profitable business,” she added.
Analysis by Rikvin shows that the employee handbook is the first resource for addressing any employment-related questions and allows the employer to make the necessary steps if the handbook does not address those issues sufficiently. The clear definition of a rule or policy in the handbook would then leave little room for ambiguity and make dispute resolution possible when it arises.
In sum, it is a tool for Singapore registered companies to manage expectations with employees in an efficient and clear manner. This also helps to maintain consistency and fairness in the workplace.
For example, the Handbook may explain various statutory regulations and requirements, for example, leave entitlements that may be applicable. In Singapore, employees are entitled to various forms of leave as stipulated in the Employment Act or the Childcare Development Co-Savings Act. However, where specific criteria may apply, the terms must be clearly set out in the handbook to ensure that all employees are aware of their basic employment terms.