How To Create An Employee Handbook In Malaysia

An employee handbook is an encompassing document a company shares with its workers to communicate work expectations, guidelines, and policies in one place. Typically, as part of the company’s onboarding and training process, all employees must read it to ensure they understand their rights and what is expected from them at the workplace.

If you don’t have a handbook yet or wish to improve your current one, this article is for you. Below, we’ve compiled everything you need to know about an employee handbook in Malaysia. 

#1 What is an employee handbook?

An employee handbook is generally an employee manual encompassing important policies and guidelines related to the company. Typically, employee handbooks contain information about work hours, dress code, rule of conduct, procedures, and more.

In simple terms, it is a way for companies to convey their expectations to employees. While it is not legally required in Malaysia, employee handbooks can provide many benefits to both your company and your employees - which brings us to our next question.

#2 Why should every company have an employee handbook?

Essentially, employee handbooks help simplify the process of onboarding and training new employees. Imagine each new hire asking the same questions repeatedly and your HR personnel answering them. A headache, we know. 

Secondly, employers can avoid labour issues and take necessary disciplinary actions by referring to the employee handbook. It can also be submitted as evidence during litigation when there is a conflict between the company and the employee.

Furthermore, employers can also set their expectations right from the beginning. With the necessary policies, behaviours, procedures, and responsibilities, employees can clearly understand their roles and what to expect when working in the company. In any case, when an employee has a question, both the employer and employee can refer to the handbook and quickly figure out the next steps or solutions to the relevant issue.

In addition, an employee handbook minimizes lawsuits by providing employees with concise guidelines on what they can and cannot do. It acts as a black-and-white bridge between you and your employees, which helps establish consistency in the company.

As for companies that run in multiple locations worldwide, employees can understand what to expect from different offices. This saves your local HR time from onboarding transferred team members.

#3 What should be included in an employee handbook?

The content of employee handbooks is often similar from industry to industry. But here are some examples you can include:

• Employee rights

• Employment contract and key policies

• Code of conduct and employee behaviour

• Complaints and grievances handling procedure

• Rules and regulations on organizational email usage, breaks, attendance

• Guidelines for phone use (e.g. no private calls during work hours)

• Handling process for being absent from work

• General rules on office romance or relationships

• Alcohol and drug policy

• Privacy policy for employees handling personal data, sensitive, or confidential information

• Overtime and work hours

• Equal opportunity policy in terms of employment, training, advancements, transfers, and compensation 

• Employee disability policy

• Discrimination and harassment policy

• Leave of absence policy for employees who need time off (e.g. compassionate leave, personal emergencies)

• Disciplinary action policy

• Office dress code rules 

• Procedure for termination of employment

The employee handbook should outline all of the above policies or more. Also, employee handbooks in Malaysia typically include Ministry of Human Resources employment laws, legislation, and key values.

#4 What should NOT be included in an employee handbook?

Several matters should be excluded from your employee handbook, such as:

• Complaints to the labour commissioner

• Discussion of pay with other employees or third parties

• Information about contracts on individual projects and benefits for retired employee

• Information about the company's financial issues or difficulties

• Rules for employee clubs or societies

• Any personally identifiable information such as names, addresses, compensation, amount of EPF, and KWSP ID.

As an HR would know, these subjects are often confidential and require a separate, different agreement with current workers before discussing them in detail.

#5 How do you create an employee handbook?

To get started, here's a step-by-step guide:

1. Determine whether you want to use a template or write your own. For starters, we recommend researching and comparing templates from any available sources.

2. Decide on the tone of voice and English grade level appropriate for the handbook.

3. Draft out what information must be included in the employee handbook. For instance, company key policies, employment contracts, code of conduct, etc.

4. Fill each section in the outline by compiling all the necessary information in and out of your company.

5. Form a table of contents to help relevant team members navigate the employee handbook.

6. Seek feedback from your team members before finalizing it.

7. Have it go through a proofreader or editor, and work with graphic designers for any illustrations needed in the employee handbook.

8. Get the handbook approved by the management.

#6 What to do after getting the employee handbook approved?

Lastly, communicate the approved employee handbook to all your employees.

You can do so by:

• Sending them an email with an attachment or via a URL link

• Printing copies and placing them around the office for employees to read, or

• Putting them up on notice boards within the company (if it's a summary of a few pages).

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