Whether your business has an official handbook outlining the rules and procedures of the company or simply a list of policies, it's important that you establish basic rules and guidelines that people are expected to follow. Put rules and regulations in writing in case someone ever questions company policies.

More and more employees are jumping at the chance to sue their former employer. Don't make it easier for them to do so. Spell everything out. Such policies should include information on:

• Vacations

• Pensions and retirement benefits

• Holiday pay

• Safety regulations (including those imposed by outside agencies)

• Sick leave and disability

• Reviews and raises

• Specific grounds for termination

• Incentives and bonuses (if you offer any)

• Sexual harassment

• Drug use, drug testing, and smoking

• Hours and work schedule

• Theft or misuse of company property, equipment, or funds

• Defined work status (full-time, part-time)

• Inappropriate use of the computer and/or Internet (or other technological equipment)

• Discounts on merchandise or services

If you have more than twenty people working for your business, you should consider putting all this information into a booklet or handbook to distribute when an individual is hired. Having such a book (or at least having the rules and policies in writing) can help you if you're ever sued.