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Company Policies: The Right Policies Protect Your Business


Organizations with clear company policies create an environment that benefits both employees and employers. By outlining employees’ rights and expectations within your company, you help set behavioral and performance standards for the workplace. This gives employees an overall framework of how to be successful at your company. Company policies also help to protect your business and contribute to a safe and more enjoyable work environment for everyone.

I always recommend you speak to an attorney when putting this together. Please make sure it is a corporate or business attorney. While personal injury, divorce and real estate attorneys have a legal license, they are not in same field as a corporate or business attorney. Thinking that all attorneys are the same is like thinking that all the doctors are the same. So let me ask you, would you go to a foot doctor to operate on your heart? Probably not.

There are some business policies that may require specialized knowledge of local laws. you may need to comply with laws and regulations that could make or break your business. Seek professional help to develop your own policies and remain compliant. Here are some tips and practices that will guide in choosing which policies to include in your new hire, employee handbook.

What are company policies?

Company policies are the detailed guidelines that help employers deal with the health, safety and accountability of employees. These policies also describe and define what the expected guidelines are for and employee's interactions with clients and or customers. Business policies are often used as a guideline for federal or state regulatory requirements, legal issues and other situations that can lead to severe consequences for employees. In other words, company policies are designed to protect all entities involved in the business, from presidents, founders, owners and c-level leaders, to the clients and customers the organizations service.

Here’s a list of company policies you may need:

  • Equal opportunity policy
  • Workplace health and safety
  • Employee code of conduct policy
  • Attendance, vacation and time-off policies
  • Employee disciplinary action policy
  • Employee complaint policies
  • Ethics & behavior policy
  • Sensitive data protection policies
  • Work schedule and rest period policies
  • Substance abuse policies
  • Workplace security policies
  • Bring Your Own Device (BYOD) policies
  • Compensation and benefits policy
  • Travel & commute policies
  • Reimbursement policies
  • Employee fraternization policy
  • Inclement weather policies
  • COVID-19 policies
  • Natural disaster policies
  • Maternity leave policies
  • Paternity leave policies
  • Remote work policy

Why are company policies important?

Company policies clearly define your expectations for your employees. These policies may address expected performance, values or behavior. They can serve as warnings against unacceptable behavior for employees, since they outline the consequences an employee will face for breaking the rules.

Here are some of the reasons why company policies are so important:

  • They set clear expectations
  • They help keep management accountable
  • They ensure compliance with local, state and federal law
  • They protect employees and employers against legal claims
  • They promote the fair treatment of employees
  • They help create a more inclusive, welcoming workplace

Here are some examples of the policies all companies should implement:

1. Equal opportunity policy

Many countries mandate that you must be an equal opportunity employer by law. For example, in the United States, the U.S. Equal Employment Opportunity Commission enforces a wide range of federal laws that prohibit workplace discrimination.

An equal opportunity policy (EOP) prevents companies from discriminating against job applicants or employees if they are a member of a protected class (e.g, race, gender, age, religion, familial status, color). The EOP is essential for any anti-harassment, workplace violence, non-discrimination or diversity policies your company may consider developing.

2. Workplace health and safety

It’s important to provide your employees with a safe and healthy work environment. Workplace health and safety violations can cause harm to your employees, cost your business money and damage your reputation.

Your business should be proactive and write a health and safety policy that is designed for each workplace. For example, you might specify what employees should do in case of office emergencies or how to handle unsafe materials. The Occupational Safety and Health Administration (OSHA) has guidelines on how to create a safe workplace and protect workers from occupational hazards that you can base your policy on.

3. Employee code of conduct policy

A clear and concise code of conduct can help employees understand your expectations in terms of performance and behavior. This policy might include specific rules related to substance abuse, sexual harassment, giving gifts, dress code, confidentiality, fraternization, and even the use of recording devices, personal cell phones, or scrolling through your social media during work hours.

Some misunderstandings may still occur, but at least employees have a point of reference if they’re unsure about what is expected of them.

Here’s an example of a policy to include in your code of conduct that addresses employee discrimination and harassment:

GC Rosario Group, LLC, it's partner & member companies, and all associated with the brand are committed to ending workplace, marketplace and social discrimination, and to eradicating any unlawful harassment in our workplaces. Any actions, jokes, social media posts (even in your personal accounts), spoken or written comments, or any other form of communication referencing an employee or client’s race, religion ethnicity, sex, age or any other legally protected class presented in a negative or harmful manner will not be not tolerated and will be met with stern disciplinary action. Such actions are grounds for immediate suspension or termination without pay.

4. Attendance, vacation and time-off policies

Having a standard way to request a day off or take vacation leave will help things run more smoothly in the office. A PTO policy should outline how much time off employees receive, when and how they can accrue more time off, who they should contact to request their time off and anything else they may need to know about taking PTO (e.g., is vacation use-it-or-lose-it?). Other time off policies to consider creating include parental leave policies and bereavement leave policies.

You can also choose to create a separate attendance policy or no call no show policy that outlines what is considered tardy, how far in advance they should request time off and what happens if they don’t show up for work.

Here’s an example of a company attendance policy you can use to help write your own:

Employees are expected to be on time and in good attendance. You must be present and ready to work at your workstation at the start of your shift. You will be given a 10-minute grace period after the start of your shift before you will be considered late. Employees who are late on more than five occasions will be subject to disciplinary action. Absenteeism and tardiness are burdensome to your co-workers and leaders, and will not be tolerated without just cause.

Here is the GC Rosario Group, LLC attendance policy:

GC Rosario Group is not a conventional organization with strict daily schedules. We are a consulting firm in which our team members' days are never the same. Therefore, our attendance policy is less about the minutes and hours, and more about the timing and completion of work. Our team members (we do not call anyone an employee) are expected to show up daily and be ready to tackle the tasks of the day by 8:30 am. We conduct a mandatory morning meeting at 8 am Monday - Friday. All team members are expected to attend the meeting on time, and the doors will be shut at 8am. Any team member who does not make the morning meeting without prior notice will be considered late. Tardiness will affect the team member's company advancement, account assignment, bonus disbursements, performance reviews, promotions, etc. Any team member who is late when meeting a client will immediately lose the account. That client will then be assigned to a more reliable team member.

5. Employee disciplinary action policy

Some of the most important company policies involve discipline and employee conduct. Before you can hold your employees accountable for their actions, it’s important to record your expectations in terms of performance and behavior in your employee handbook or individual employee contracts. With complete access to the rules and regulations of the workplace, you can then enforce disciplinary action when appropriate while using the employee handbook as a point of reference.

A simple step-by-step list of what happens regarding disciplinary action can make it easy for employees to know what to expect if they violate a company policy. Describe a specific process you will follow to ensure every employee is treated fairly when it comes to discipline. Have a lawyer review this information before you include it in your employee handbook to make sure all disciplinary action is legal. Make sure you hire an attorney that is centered on business law & practices.

6. Employee complaint policies

Grievances are formal complaints your employees can file to document their concerns with an aspect of their workplace. These grievances might be filed as a result of an incident or conflict with a fellow employee. A grievance can be filed for nearly any reason, including physical workplace complaints, financial issues like payroll and social circumstances like harassment or bullying. It’s important to outline a formal process for resolving complaints within your company so that employees know how to handle their concerns in a professional way.

It may also be a good idea to develop a non-retaliation policy to protect employees who make good faith complaints against their manager or co-workers.

Here is ours:

At GC Rosario Group, LLC we practice an open door policy for our team members. To ensure the flow of daily business, and the meeting of our responsibilities, all grievances must be presented in writing to our HR department. The HR director will then meet with the appropriate leadership members, address the conflict and work diligently to find a resolution. Team member to team member conflicts are not tolerated in the workplace. If a conflict should arise, we expect the team members involved to remain professional in their approach and bring the conflict to the attention of the proper chanel. Your supervisor is always the first stop, prior to escalating the complaint to HR. If the conflict involves your supervisor, your first point of contact should be this person's supervisor. Always follow the chain of command. All complaints should be presented, and no team member should ever fear being punished for bringing any complaint to light. Defamation of character due to internal conflict will never be tolerated, and is grounds for immediate suspension or termination without pay or warning.

If you want to develop business policies to address important workplace issues, consider following the steps below:

1. Identify the need for the policy

Observe the way your management and employees deal with workplace issues, and identify which areas could use improvement. For instance, if employees consistently violate unwritten rules, you may consider adding a new policy that addresses this and other related issues.

2. Determine the content needed for the policy

Write down key areas that need to be addressed within the policy. For instance, you can include different sections or clauses that prevent you or your employees from finding loopholes. Consider all aspects of the policy, what you would like your employees to do and what you would like them to avoid doing. It’s also a good idea to include what form of disciplinary action will be taken if a policy is violated.

Consider checking with an attorney before distributing any policies to employees.

3. Communicate the new policy to employees

Current employees need to be notified of new policies when they’re released or added to the employee handbook. You may even consider adding a signature line to the new policy to make sure employees know that they must follow the rule from the date they sign it. This prevents conflict later on if an employee states they were never aware of the policy after receiving disciplinary action for violating it.

It’s also important to review and discuss company policies with new employees during onboarding so they know what to expect. Consider having them sign a form stating that they were given an employee handbook or a list of your policies, rules and regulations.

4. Update and revise the policy as necessary

You may consider amending or revising your policies as necessary in accordance with laws and regulations or according to your company’s objectives and any employee feedback.

Company policy FAQs

Can a company change a policy without notice?

Many companies include a statement that policies can be changed at any time without notice to employees. However, if building trust with your workforce is something you value, consider updating your employees on all new or changed policies as they occur. Remember, company policies exist to help your employees be safe, productive and successful in their role, so it’s important that they’re aware of any changes.

Are company policies legally binding?

Unless the policy indicates otherwise, company policies can be legally binding for employees under certain circumstances. For example, an employee could be tried legally for their actions in the workplace, such as committing fraud or sexual harassment.

Where should you put your company’s policies?

Company policies are most often included in employee handbooks. You can also provide updates to company policies through additional documents or via email. Most companies typically have their policies available to employees online as well, usually through the company’s intranet.

ABOUT THE AUTHOR:

George L. Rosario is a Brooklyn NY born & raised businessman & entrepreneur turned consultant. He started GC Rosario Group with his lovely wife Claudia. With over 30 years of service to the marketplace in NYC, George has relocated and been graciously adopted by the business community of South Florida. He now travels the country helping businesses and organizations thrive in today’s noisy environment. The post-Covid era forced many to close their doors, but also opened new doors of opportunity, growth and prosperity for innovative thinkers. George & Claudia Rosario help companies, businesses, organizations and teams develop the necessary skillset and plan of action to not just survive, but thrive in this new world. GC Rosario Group helps both secular and Christian based institutions meet their goals.

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