What should be included in an employee handbook

Creating an employee handbook can feel overwhelming. What should you include? What can you leave out? How do you balance legal requirements with company culture?

Don't worry — building a good employee handbook is easier than you think. Here's exactly what should be included in yours and why each section matters.

As you can see in our employee handbook examples, there are many different approaches companies take — from PostHog's radical transparency to Valve's personality-filled design. But regardless of style, every effective handbook needs certain core elements.

New to handbook creation? Start with our step-by-step guide on how to create an employee handbook to walk through the entire process.

Let's break it down into the simple sections every employee handbook needs:

Basic Sections Every Handbook Needs

Before we get into details, here are the main sections that every good employee handbook should have:

• Welcome message — Set the tone and introduce your company
• Company overview — Mission, vision, history, and values
• Onboarding & expectations — What new hires can expect in their first 30-60-90 days (detailed guide)
• Employment policies — The legal and practical stuff
• Benefits and compensation — What employees get and how
• Workplace guidelines — Day-to-day expectations and procedures
• Legal compliance — Required disclosures and policies

Now let's break down what should go in each section.

Company Culture & Values

This is where you set the tone for everything else. Your culture section should include:

• Welcome message — A personal note from leadership
• Company mission and vision — Why you exist and where you're going
• Core values — What matters most to your organization
• Company history — Your story and key milestones
• Organizational structure — How your company is organized

Tip: Make this section personal and real. Employees know when companies are being fake.

Employment Policies

This is the "business" section that covers the legal and practical aspects of employment:

• Employment classification — Full-time, part-time, contractor status
• Work schedules — Hours, remote work, flexible time policies
• Time off policies — Vacation, sick leave, personal days, holidays
• Performance expectations — How success is measured and evaluated
• Disciplinary procedures — Progressive discipline and termination process
• Resignation and termination — Notice periods and exit procedures (detailed offboarding guide)

Keep it simple: Use easy words and clear examples. Don't use complicated legal terms.

Benefits & Compensation

Employees want to know what they're getting. Be transparent about:

• Salary structure — How pay is determined and when reviews happen
• Health benefits — Medical, dental, vision coverage details
• Retirement plans — 401(k), matching, vesting schedules
• Additional perks — Gym memberships, learning budgets, free snacks
• Stock options or equity — If applicable, explain how it works
• Expense reimbursement — What's covered and how to submit

Be clear: Instead of saying "good benefits," tell employees exactly what you offer and how to use them.

Workplace Guidelines

Cover the day-to-day expectations and procedures that keep things running smoothly:

• Dress code — What's appropriate for your workplace
• Communication standards — Email, Slack, meeting etiquette (see Slack integration)
• Technology policies — Device usage, security, social media
• Office procedures — Visitors, parking, kitchen rules
• Travel and expense policies — Booking, approval, reimbursement
• Professional development — Training opportunities and career growth

Make it useful: Give real examples and tell people who to ask if they have questions.

Legal & Compliance

These sections are often required by law and protect both you and your employees:

• Equal opportunity statement — Anti-discrimination and harassment policies
• Safety procedures — Workplace safety, emergency procedures
• Confidentiality agreements — Protecting company and customer information
• Whistleblower protection — How to report concerns safely
• Compliance requirements — Industry-specific regulations

Get help: Have a lawyer check these sections to make sure they follow the law.

Final Tips for Your Handbook

Here are some important things to remember when you make your employee handbook:

• Keep it fresh — Update your handbook every year
• Make it easy to find — Put it somewhere everyone can see it
• Write simply — Use normal words, not fancy legal terms
• Be honest — Your rules should match what you actually do
• Ask for feedback — Find out what employees don't understand

Remember, your employee handbook isn't just something you have to make — it's a chance to show your values and help employees do their best work.

⚠️ Just as important as knowing what to include is knowing what to avoid. Check out our guide on common employee handbook mistakes to make sure you don't fall into these traps.

📄 Need a starting point? Download our free employee handbook template with all essential sections ready to customize.

🏭 Work in a specialized industry? Check out our industry-specific templates for restaurants, HVAC, electrical contractors, plumbing, and cleaning companies.

👉 Ready to create your handbook? HandbookHub can help you generate a comprehensive employee handbook in minutes — covering all the essential sections with content tailored to your company.