Putting in place clear and consistent employee policies is an essential process for businesses of all shapes and sizes. Without clearly laid out policies that define things like expectations and roles, even the simplest situations can become extremely complicated.
Setting employee policies tells employees how they should deal with important subjects like privacy and confidentiality, lays out what you expect of them in the workplace, and offers guidance for time off requests, vacation, overtime, and breaks. Policies also play a crucial role in defending businesses in the event that an employee must be terminated or disciplined.
Reason 1: Compliance Having employee policies in place that are consistent with employment legislation demonstrates an awareness of and a commitment to legislative compliance. Employers have clear obligations under the Employment Standards Act, Occupational Health & Safety Act, Labour Relations Act, the Human Rights Code and other pieces of legislation that affect employment. Being negligent in this regard can have devastating consequences for any business. Employee policies can help to keep the guesswork out of decision making, making it easier for employers to comply with the law while simultaneously creating a workplace culture where employees feel that their rights are being consistently acknowledged and respected.
Reason 2: Legal Defense
Consider a brief example where a termination is being disputed as having been wrongful by an employee, and is subsequently brought in front of a judge. The employer alleges that the employee has violated company confidentiality policies, and the employee disputes these claims.
On one hand, the employer feels that the termination is justified as the employee was in violation of the company’s confidentiality policy and on the other hand, the employee claims that they didn’t know they could be fired for breaching confidentiality.
Among many other factors, one thing that will definitely be looked at is the agreement that was held between the employer and the employee on the matter of confidentiality. This could be outlined in the employment contract, job description, supplemental agreements, company policies and procedures, employee training, or other official company documents.
When deciding on whether the confidentiality breach justifies dismissal, the judge will ask questions like:
Is there a written policy in place?
Was the policy clearly communicated to, and understood by the employee?
Did the employee agree, in writing, to adhere to the policy?
Was there a performance management meeting(s) where the policy was revisited and the employee retrained?
Did the policy clearly state that a violation would result in discipline and/or termination?
Imagine not having any sort of employee policy in a situation like this? What legal defense would this employer have then?
Reason 3: Consistency
Employees have a right to fair and equitable treatment and it is the responsibility of the employer to ensure that this happens at all times. Employee policies are the best way to ensure organizational consistency. Policies on matters like time-off, overtime, breaks and meal times, dress code, conduct expectations and progressive discipline can contribute to the fair and equitable treatment of employees, as long as they are consistently applied.
Without employee policies, management may be required to use their own judgement on a case by case basis which can quickly lead to a discrepancy in decision making, or even a perceived inequality through the eyes of employees. The best way to avoid this is to have appropriate policies in place and to apply them consistently.
Reason 4: Accountability Employee policies are a great tool to educate employees on the expectations of the company so they’re provided with the best opportunity to be successful in their role. When performance is not up to standard, employers can retrain employees on existing policies and then reference these when discussing performance improvement plans. At the end of the day, employees can only be held accountable when rules are clear and unequivocal. Employee policies, properly communicated, can help employers ensure that workplace rules are clearly defined, thus setting the stage for performance management.
Reason 5: Organizational Culture and Employee Morale Having employee policies in place can really help when it comes to onboarding new employees. Company policies help to introduce the new employee to the company and begins to paint a picture of the organizational culture, mission, vision, values and so on. With this solid foundation, new employees can gain a better understanding of the company and how they fit within it. This helps to foster a sense of belonging and pride, going a long way to increase employee confidence and morale. HR Werx is your on-demand HR department. We’re ready to help you put in place effective employee policies that will defend you and your business and work to enhance an employee satisfaction and confidence. Contact HR Werx today to find out what we can do for your business.
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