Employee Handbook: The Foundation for Clear Employment Relationships

A well-designed employee handbook promotes transparency, legal certainty, and efficiency in the workplace. But what are the benefits of having one, and what should it include?

An employee handbook is a valuable tool for both employers and employees, as it establishes the key terms and conditions of employment in a clear and consistent manner. Standardised rules help prevent misunderstandings and simplify day-to-day business operations.

It also allows employment contracts to remain concise. Instead of repeating generally applicable provisions in every individual contract, employers only need to refer to the employee handbook.

What Should Be Included?

An employee handbook should cover all essential aspects of the employment relationship. Typical topics include:

• Working hours, break policies, and overtime arrangements
• Annual leave and unpaid leave
• Salary continuation during illness, accidents, or military service
• Workplace conduct, data protection, and the use of company equipment
• Rights and obligations relating to training, professional development, and secondary employment
• Rules governing absences, maternity leave, paternity leave, and other family-related responsibilities
• Secondary employment and the acceptance of gifts

The handbook should be well organised and written in clear, easy-to-understand language so that all employees can readily understand the applicable rules.

Employee Handbook vs. Employment Contract

While the employee handbook contains policies that apply to all employees, the individual employment contract governs the specific terms agreed between employer and employee.

These typically include:

• Position and responsibilities
• Salary and any allowances
• Employment percentage (workload)
• Place of work
• Start date and, where applicable, the end of the employment relationship

The employment contract should explicitly refer to the employee handbook and confirm that its provisions form part of the employment relationship.

Preparing and Updating an Employee Handbook

Developing an employee handbook should follow a structured process.

The first step is to assess the company's operational needs and ensure they comply with applicable legal requirements.

Involving employees—or their representatives—during the drafting process can improve acceptance and provide valuable practical input.

The handbook should be reviewed regularly and updated whenever legislation changes or the company's organisational needs evolve.

Any amendments or additions should be documented in writing. In most cases, employee consent is required for changes to become legally effective.

Expense Policy as Part of the Employee Handbook

An expense policy sets out how employees are reimbursed for business-related expenses incurred during the course of their work.

It can either be issued as a separate document or incorporated into the employee handbook.

A clear expense policy benefits both employers and employees by defining which expenses are reimbursable while helping to minimise tax risks.

It is advisable to use the model expense policy published by the Swiss Tax Conference (SSK). Doing so simplifies and speeds up approval by the tax authorities and makes it easier for employees to complete their personal tax returns.

Practical Tips

An employee handbook should always reflect both the company's current needs and the applicable legal requirements.

When preparing or revising the handbook, seek professional legal advice to avoid potential pitfalls.

Communicate any changes to employees clearly and in good time.

Finally, keep all previous versions of the handbook carefully archived. This provides important evidence of the applicable rules and any amendments should disputes arise.

Source: Treuhand | Suisse