Starting your business is a complex process that requires making a lot of decisions and putting in quite a bit of time and money. Whether you are just beginning your business or are looking to expand it, it is important to establish policies for your company. Creating policies and procedures for your business provides your employees with a professional guide for working at your company. It should also set policies for customers, clients, and contractors.  It can also protect you against future legal issues.

Employee Handbook

An employee handbook is a document that contains important information about the company and specific rules and policies that employees must follow. There are various examples of employee handbooks that can be used to write your company’s own variation. It is critical that you tailor the document to your own company’s needs. It is also imperative that the rules in the handbook are in accordance with local, state, and federal laws.

What to Include

There are a number of matters that should be addressed in a company’s policy and procedures, or employee handbook. Some things that you may want to include are:

  • Safety Procedures
  • Disciplinary Policies
  • Vacations and Sick Time
  • Policy for Device Use
  • How to Handle Customer Disputes
  • Payment Policies
  • Tips and Compensation
  • Employee Evaluation Process
  • Disciplinary Procedures
  • Termination Policy
  • Non-Disclosure Agreements

Consult with an experienced business attorney for guidance on creating a document that will protect your company from many potential legal situations in the future.

Customer Policies

Companies also need to put policies in place for dealing with customers. A policy for how to handle special requests, returns, refunds, and dispute resolution is needed. When you put any policy in effect for customers, you must provide a way to let them know about. For example, you may provide your return policy on printed receipts and on posted signs. Employees need to know how to enforce customer policies and there needs to be an escalation process in place.

Enforcement of Policies

Once in place, policies and procedures must be properly enforced. Employees must be aware of the policies, so it is advisable to have them sign a document stating that they received and understand them. Whenever a policy change is needed, modifications need to be made to all pertinent documents and employees must be notified. It is helpful to put together a policy plan that meets all your needs while adhering to the law. Have the document reviewed and approved by an attorney before putting it to use.


This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Creating Policies and Procedures for Your Business, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to,  or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.