Example of a Company Policy- A company policy is a condition of service that informs an employee of his or her entitlements. Company policy should state in detail the general welfare of workers in an organization.
Below is a typical Example of a Company Policy.
The conditions of service are usually subject to review by the General Manager of the company and then finally endorsed and approved by the Managing Director. On review or additional condition, the HR department will communicate same to all employees.
1. PROBATIONARY PERIOD
Employee hand book should state a probation period for staff. A probation period is usually a specified time frame which a company use to monitor a staff progress at work. If the given time frame as stated in the employees condition of service elapse and the staff did not meet the required target, the company will have no choice than to take action against the said staff.
2. HOURS OF WORK
The hand book should also state the company’s work hours and days so that outside the company’s works hours and days, if employees by reason of their type of duties work extra hours or on weekends then the company will have no choice than to compensate them with the extra hours worked.
Overtime payment is made to employees with hours of work in excess of the employer’s allotted hours of work. This request is endorsed by the employee’s supervisor, calculated by the Admin/HR and approved by the General Manager and then account department will do their job by paying the staff.
Staff condition of service should also state how much a staff is entitled to in the event of extra work hours.
4.METHOD OF PAYMENT OF SALARIES/SALARY STRUCTURE
Salaries are to be paid to employees in accordance with the Staff Salary schedule approved by Management. Staff salary schedule should be reviewed from time to time in accordance with the staff’s skills and industry standards. Here, staff’s salary structure should also be stated.
Salary increase is usually based on staff performance appraisal. The performance appraisal is linked directly to employee’s specific duty functions. The percentage used for such increment is at the management’s discretion.
Salary increase may be granted to an employee after a performance appraisal has been endorsed by the head of Department. The final approval after such endorsement is the prerogative of the General Manager.
Sometimes a performance review may not always result in an automatic salary increase. The staff’s overall performance and salary are evaluated to determine if a salary increase would be warranted. Which ever hierarchy the company operates, the criterial for salary increment should also be revealed in the employees condition of service.
A good example of a company Policy should explain what happens to an employee that may be transferred to another city for work purposes. An employee may sometimes be transferred to another work location for work purpose. When this is done, the employee’s hand book should stated a specified amount such employee is entitled to.
In the event that the employee is relocating with his family, the employer’s hand book should also sated how much the staff is entitled to or who bears the cost of transportation of his property and family to the new location.
The employer’s hand book should also state who provide an initial accommodation for the employee during transfer.
7.OUT OF STATION ALLOWANCE
Employees condition of service handbook should state in detail of an entitlement to staff who are posted to work temporarily in another station outside their normal station and stay overnight.
8A. ANNUAL LEAVE
An employee who has completed one year of continuous service after confirmation shall be entitled to a specified number of days of annual leave exclusive of public holidays. The employee’s hand book should also state the days.
Sometimes the company closes annually for holidays especially by the end of the year. The number of days scheduled for the general closure can sometimes form part of the employees’ annual leave.
Company’s annual leave procedures should be stated clearly in the staff condition of service
B. LEAVE ALLOWANCE
In a staff standard working environment, 10% of the employee’s annual basic salary is paid to the employee as leave allowance. The employees hand book should tell a staff how much is his leave allowance.
The Company may grant Compassionate Leave with pay for a maximum a specified working days period in a year. However, should an employee for personal or family reason need more time after the completion of his leave for the year, such absence may be at the cost of the employee if approved by the General Manager or by any top manager of the company.
10A. MATERNITY LEAVE
All female employees can sometimes be granted a specified weeks for maternity leave with full pay or without pay. Sometimes the maternity leave if taken before the annual leave for the year, can form part of the annual leave for the year for the staff.
B-Nursing mothers: The plan you have for nursing mothers should also be made known to them in the staff condition of service hand book.
Nursing mothers may be permitted to resume one 1 or 2 hours late than the usual resumption time and close 30 minutes earlier than the closing time to enable them nurse their babies. This will be only for a period of may be 3 months after which resumption and closing schedule will revert to company’s time.
11. SICK LEAVE
Would you mind to give sick leave to your employees?. The procedures of giving a sick leave should be detailed in the employee’s condition of service.
If you give an employee a sick leave, that employee is expected to produce a sick leave certificate from an approved doctor for any absence longer than the approved period. But in cases of a prolonged illness, you may decide to pay the staff the first Two (2) months salary and may be 50% of the staff’s salary in the third month.
After the third month and the employee still did not resume work, then you can advice the employee to resign or decide to terminate the employment with payment of full benefits or as agreed by the management.
12. EXAM LEAVE
If you want to give room for your employees to further their studies or learn new skill for their own benefit and the that of the company, then the procedures should also be outlined in the staff’s condition of service.
An employee may be allowed a special leave on full pay or without pay to sit for examination, however, exam timetable if possible must be attached to a written request made to the General Manager’s office through the HR department.
13.GROUP LIFE INSURANCE
Are your employees under group life insurance coverage?
The procedures should also be stated and what the staff will benefit should also be stated
14.SEPERATION FROM EMPLOYER
Separation could be by resignation, termination or death. Staff condition of service should also stated in detail what staff is entitled to in the event of a staff living your company as captured in the company’s policy.
As a form of corrective measure/punitive measure, employee’s condition of service hand book should state the proportion of punishment applied to any staff who committed offence as against the company’s rules and regulation.
You can start by giving the staff:
- Verbal warning.
- Written warning.
- Suspension from work up to a maximum of 2 weeks (without pay) and then
Some Companies operates on zero tolerance when it comes to theft of company property. Whatever the employee’s reason may be, an employee is not expected to take for himself any material belonging to the company without authorization.
In cases of unauthorized movement of company property causing loss to the company or resulting in police investigation, all suspected employees will be suspended as long as the investigation lasts and this suspension may be without payment.
Sometimes on conclusion of investigation of theft, the company may reserve the right to call back the justified employees to resume work and payment will continue from the month of resumption or otherwise terminate their employment. While the employees found culpable will face dismissal which may be without benefit/payment.
Listed below are examples of offences which a company may see as a punishable offence.
- Aiding and abetting fraud
- Corruption or attempting to corrupt other employees
- Being in possession or caught smoking Indian hemp
- Conducts likely to endanger life or safety of others
- Causing damage to company’s property either
- Gross insubordination
- Divulging company’s secrets
- Any other offence which the employer considers to be serious enough to warrant a dismissal.
What retirement plan do you have for your employees? state it clearly in the staff staff condition of service.
As part of retirement savings, you as the employer may pay the minimum percentage for the employees to a government registered pension Administrators. So that when the staff retires, he/she can have something to fall back on
What happens in a situation where the company is on the verge of collapse? It may be due to bad economy or lack of contract. What happens to your employees in such conditions?. In the employee’s condition of service, you should let the employees know their fate in the event of bankruptcy.
Redundancy simply means reducing staff due to lack of contract.
You may decide to pay your outgoing employees redundancy fee. Redundancy pay can serve as a compensation for loss of future prospect of employment with the Company.
Do you have a specified age limit through which a staff will reach and retire? state it in the staff’s condition of service.
some private companies has no specific retirement age so long as the employee carries out duty functions effectively. However, if age affects the discharge of an employee’s duty, the management will communicate to the employee in writing advising him/her to retire.
The company may decide to celebrate the retiring employee for a meritorious service.
Such gifts shall be at the discretion of the management.
If your company have any loan policy, it’s important to inform the staff too. But if the company do not have any loan policy, and you decide to grant loans to some of your dedicated staff. You should also get your employees informed on the conditions attached to loans.
Does your company encourage staff who wishes to improve their skills and carriers through short courses, in-house training and seminars? let your employees be aware of the conditions attached to any kind of trainings.
21. PROTECTIVE CLOTHING &SAFETY EQUIPMENT
Are you the one to provide safety materials to your employees or they are the ones to buy with their money? state it in the employees conditions of service.
Normally, you as the the employer is supposed to provide protective clothing and safety equipment free of charge to all employees as a safety measures.
22. GRIEVANCE PROCEDURES
What measures have you put in place to settle misunderstanding in you company?.
In a standard work setting, an employee who has a grievance should make the grievance known in the first instance to his immediate Supervisory Officer or to the Human Resources Department. The immediate
Supervisory Officer shall settle the grievance after the employee had made known the grievance to him.
If the employee is not satisfied with the settlement of his immediate Supervisor Officer, he shall then report the grievance to the management
23. DIVULGING OF OFFICIAL SECRETS
What punishment do you have for an employee who breached the confidentiality agreement of the company?
Employees may during the course of their duties, come into possession of facts or information relating to the Company’s business. All such facts or information of a company is supposed to be treated as confidential and shall not be disclosed to any unauthorized person(s).
Do you have any benefits for your staff by the end of each year? the staff conditions of service should also contain information about bonuses and allowances a staff is entitled to by the close of work every year.
End of year bonus is usually not a statutory right of the employee, however, a company may decide to grant bonus to staff from their profit for the year. The amount payable is the discretion of the management.
The above conditions represent the conditions of service for employees in a work setting.
Amendment is usually carried out periodically as approved by the MD or the CEO of the company and endorsed by the General Manager and the Technical Manager or any other top ranking officers of the company.
I hope the above guideline will help you to write your company policy with ease. If you have any question or contribution, kindly drop it on the comment box below.