The average lawsuit settlement settlement is $165,000!It takes just one disgruntled employee or applicant to file a lawsuit against you. It is crucial for companies (of all sizes) to reduce the risk of lawsuits by creating a legally compliant employee handbook. The employee handbook is the most important communication tool between you and your employees. It also helps supervisors and managers to manage the workforce. A handbook tells employees what the company expects from them and what they can expect from the company, i.e., What are my working hours? Who do I complain to about my supervisor s sexual advances? Am I eligible for Holiday pay? What is the dress code? A well-written employee handbook will answer these questions and more. It is always safer to rely on written procedures rather than common practices of the business or unwritten procedures.