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How much does it cost to have an employee handbook written?

Written by PolicyDrafters. Published , updated .

An employee handbook costs least as a downloaded template and most from a legal practice. A fixed-price drafting firm quotes one figure before work starts; ours lands in the $1,200 to $2,500 band, with review by our legal team included. Four things set the price: jurisdictions, headcount, your existing documents and policies beyond the core sections.

What are you paying for when you buy a handbook?

The cost of an employee handbook tracks four questions: who writes it, who reviews it, how much of it is written for your business rather than for every business, and whether anyone keeps it current after delivery. Each route answers them differently.

  • A downloaded template is the cheapest route. It leaves the fitting, the review and every later update with whoever in your business has the time.
  • A freelance HR writer drafts to your brief for a fee agreed by the hour or for the job. An independent legal review is a separate cost.
  • A legal practice usually costs the most, billed by the hour or under an engagement letter. It is the right place to go when you need advice on a live situation rather than a document.
  • PolicyDrafters, a fixed-price drafting firm, quotes one figure before work starts. It has the draft reviewed by our legal team and keeps it current under a maintenance plan.

An employee handbook is the document that sets out an employer's rules, benefits and procedures for its staff in one place, with an acknowledgement each employee signs to record that they have read it. That definition matters for the price, because the second half of it, the record that each person has read the rules, is where a cheap handbook becomes expensive. A document nobody can rely on in a grievance or a dismissal is not a saving.

In Great Britain the handbook also does statutory work. Section 1 of the Employment Rights Act 1996 requires an employer to give every worker a written statement of particulars no later than the first day of employment [1]. Section 3 requires that statement to include a note of the disciplinary rules and the disciplinary and dismissal procedure, or a reference to a reasonably accessible document that sets them out. It must also say who the worker can take a grievance to [2]. That document is often the handbook.

The Acas Code of Practice on disciplinary and grievance procedures, in force since 11 March 2015, asks in paragraph 2 for those rules and procedures to be set down in writing and to be specific and clear, and employment tribunals take the Code into account [3].

What does a downloaded template cost you?

A template is a finished-looking document written for every employer in a broad market, with placeholders for your name and a drop-down for your country or state. You get the structure of a handbook, usually the right headings in the right order, and a price you know at checkout. That is a real benefit when you have nothing at all.

What you do not get is a reader. Nobody has asked how you hire, pay, review or let people go, so the leave section describes a leave scheme you may not run, the discipline section assumes a management structure you may not have, and the jurisdiction is often the seller's rather than yours. Nobody reviews the result for you. The review is your job, or it is skipped.

When the law changes, the seller may update the master file, but your copy is a copy, and it stays as it was on the day you downloaded it unless you notice the change yourself and make it. The template is the cheapest line on the invoice and the most hours of your own time, and the hours are spent by whoever in your business is least equipped to spend them.

What does a freelance HR writer give you for the fee?

A freelance HR writer gives you a document written to your brief, for a fee agreed by the hour or for the job. The quality tracks two things: the writer, and the brief. A good writer with a good brief produces a usable handbook. A good writer with a thin brief produces a tidier template.

The brief is where small employers struggle, because a brief lists the policies you know you need, and the policies you do not know you need are the ones that cause trouble later. A legal review is not part of the arrangement unless you pay for a separate one. And when the rule changes, there is no standing arrangement: you find the writer again, or a new one, and brief them again.

An employment lawyer's practice gives you a document drafted by someone qualified in the relevant jurisdiction and, if you ask for it, advice on how it applies to your situation. That advice is something a drafting firm does not provide, and when your real need is a view on a dispute or a restructuring rather than a document, the practice is the right place to go.

The price is usually by the hour, or a fixed fee agreed in an engagement letter with a scope attached, and work outside the scope is billed on top. What you do not get, unless you negotiate it, is a figure that is fixed before the work begins and does not move. Maintenance is a new instruction each time, prompted by a client alert if the practice sends them. For a handbook that will be read by managers rather than litigated, the cost tends to sit well above what the document needs.

What does a fixed-price drafting firm charge?

PolicyDrafters drafts the handbook from an intake, has it reviewed by our legal team, delivers it in Word and PDF and keeps it current under a subscription. The intake is the part that replaces the brief: it asks where your staff are employed, how you hire, pay, review and let people go, what leave you offer, how grievances and discipline are handled, and which of your current documents still apply. Where you have no answer, it offers the common options and you choose one.

Our employee handbook is $1,200 to $2,500. The quote fixes one figure in that band before we start and does not change. The first draft arrives ten working days after a complete intake, one round of revisions is included, and the handbook comes with an acknowledgement form, a document ID and a revision block that records the legal team's review. The maintenance plan is $29 to $99 a month, depending on how many documents are tracked. The full tariff is on the pricing page.

What PolicyDrafters does not do is advise on your legal position. We draft, our legal team reviews the draft, and you receive a document. Whether to adopt it, and how it applies to a particular person on a particular day, is a decision for you and for any adviser you choose.

How does a template compare with a drafted handbook?

What a template gives you and what a drafted handbook gives you
AspectTemplateDrafted
Written forEvery employer in the seller's marketYour business, from an intake about how you work
JurisdictionOne, usually the seller's; you check the fitThe jurisdictions you name, drafted against their rules
Who reviews itYou, or nobodyA legal team, recorded in the revision block
Where the gaps showAt the first grievance or dismissalAt intake, before drafting starts
PriceKnown at checkoutFixed before work starts and unchanged
RevisionsYour own editsOne round included, with changes marked
When the law changesYour copy stays as downloadedA revised handbook with the changes marked, under the maintenance plan
FormatPDF or Word with placeholdersWord and PDF with a document ID and an acknowledgement form
What a template gives you and what a drafted handbook gives you
Written for
TemplateEvery employer in the seller's market
DraftedYour business, from an intake about how you work
Jurisdiction
TemplateOne, usually the seller's; you check the fit
DraftedThe jurisdictions you name, drafted against their rules
Who reviews it
TemplateYou, or nobody
DraftedA legal team, recorded in the revision block
Where the gaps show
TemplateAt the first grievance or dismissal
DraftedAt intake, before drafting starts
Price
TemplateKnown at checkout
DraftedFixed before work starts and unchanged
Revisions
TemplateYour own edits
DraftedOne round included, with changes marked
When the law changes
TemplateYour copy stays as downloaded
DraftedA revised handbook with the changes marked, under the maintenance plan
Format
TemplatePDF or Word with placeholders
DraftedWord and PDF with a document ID and an acknowledgement form

What moves the price within the band?

Four facts move a handbook from the bottom of the band to the top. The intake asks for all four, so the quote can be fixed before any drafting begins.

The first is the number of jurisdictions. A handbook for staff employed in one country or one state is drafted against one set of rules. Staff in two places means two leave sections, two sets of statutory references and two notice regimes, and some sections have to be written twice rather than once.

In Great Britain, for instance, section 86 of the Employment Rights Act 1996 sets the employer's minimum notice at one week for an employee with at least one month's but less than two years' continuous employment, one week for each year of continuous employment from two to twelve years, and twelve weeks from twelve years [4]. A multi-country handbook is scoped in the intake and quoted as one figure.

The second is headcount. A company of ten has fewer roles, fewer managers applying the document and fewer of the obligations that employment law attaches to larger employers. As headcount grows, more rules apply and more sections are needed to carry them, so the headcount band you give at intake sets part of the quote.

In the United States, for example, the Family and Medical Leave Act covers a private employer with 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year [5]. A covered employer with any eligible employee must then give the FMLA general notice through its handbook or other written guidance on benefits or leave, where such materials exist, or hand a copy to each new employee on hiring [6].

The third is what you already have. Contracts, offer letters, a page of house rules, a previous handbook: name them in the intake and send them once we reply. We keep what still matches the rule, rewrite what does not and mark every change. Reconciling that material against the current rules is work in its own right, so a handbook that carries forward existing documents sits higher in its band than one drafted from a clean start. The review by our legal team takes the same care either way.

The fourth is the number of policies. Every handbook carries the core sections: employment basics, leave, conduct, performance and discipline, grievances and leaving. Beyond those, each additional policy, such as remote working, expenses, whistleblowing, staff data protection or drug and alcohol use, adds pages to draft and to review. You name the extras at intake, and the quote covers them.

Nothing about the quote changes after it is issued. If the intake turns out to have missed something, we tell you before drafting, not after, and you decide whether the scope grows.

What happens to the cost when the law changes?

This is the part of the price that most comparisons leave out. A handbook is accurate on the day it is delivered and then starts to age, because leave entitlements, minimum notice periods and the rules on monitoring and flexible working move. They move on the legislature's schedule rather than yours.

Flexible working in Great Britain is a recent example. Two changes took effect on 6 April 2024.

  • The Flexible Working (Amendment) Regulations 2023 removed the 26 weeks of continuous employment an employee needed before making a request. The right now applies from the first day of employment [7].
  • The Employment Relations (Flexible Working) Act 2023 amended section 80F of the Employment Rights Act 1996 to allow two requests to the same employer in any 12 months [8].

A handbook written before 6 April 2024 and never revised still describes the old rule.

With a template, nothing happens unless you are watching. With a freelancer or a legal practice, each change is a new engagement with a new fee. Under the maintenance plan, when the rule changes, your document changes: we track the employment rules you were drafted against, issue a revised handbook with the changes marked, and keep the document ID and revision history current. That is what the subscription is for, and it is why the monthly figure belongs in any honest comparison of what a handbook costs over three years rather than on day one.

If you already have a handbook and the question is whether it still describes the law and your business, a policy review reads it against the rules it names as they stand today and returns a marked-up copy, a tracked revision and a change note. It is priced per document, so one handbook is one review. Where the change note says the document needs rewriting rather than revising, we quote the rewrite before any more work is done.

Which route fits which business?

A template fits a business that needs a placeholder this week and accepts that it will replace it. A freelancer fits a business with an experienced HR lead who can write the brief and check the result. A legal practice fits a business that needs advice on a live situation, not only a document.

PolicyDrafters, a fixed-price drafting firm, fits the business in between: one that needs a handbook its managers can apply, reviewed by our legal team, at a figure it knows before it commits, and kept current without a new engagement every time the law moves. For a small business setting up its HR documents, the handbook is usually the first document on the list, and the procedures and the review of older policies follow from it.

Questions

Is a free or cheap handbook template good enough?
A free or cheap handbook template is a starting point, not a finished document. A template is written for every employer in a market, so the leave, discipline and grievance sections are generic and the jurisdiction is usually the seller's. Nobody has read it against your business, and nobody updates your copy when the rule changes.
What makes one handbook cost more than another?
Four things move the price of a drafted handbook: the number of jurisdictions your staff are employed in, the size of your headcount, whether you already have contracts and policies to work from, and how many policies you want beyond the core sections. All four are asked at intake, and the quote is fixed before we start.
Does the handbook price include review by a lawyer?
Review by our legal team is included in the fixed handbook quote, not charged as an extra. Every handbook PolicyDrafters drafts is reviewed by our legal team before it reaches you, and the review is recorded in the revision block on the document.
What happens to the handbook when employment law changes?
Under the PolicyDrafters maintenance plan, the employment rules the handbook was drafted against are tracked, and when one changes a revised version is issued with the changes marked. Without the plan the handbook is still yours to use and edit; it simply stops being tracked.
I already have a handbook. Do I need a new one?
An existing handbook often needs a review rather than a replacement. A policy review reads your handbook against the rules it names as they stand today and returns a marked-up copy, a tracked revision and a change note. If the document needs rewriting rather than revising, the change note says so and the rewrite is quoted before any more work is done.

The documents this guide is about

  • Employee handbook

    An employee handbook is the document that sets out an employer's rules, benefits and procedures for its staff in one place, with an acknowledgement form that each person signs to record that they have read it.

    $1,200 to $2,500

    10 working days

  • Policy review and update

    Policy review and update is a check of an existing policy against the current text of the rules it names and the facts it states, returned as a marked-up copy, a revised version with every change tracked and a change note saying what moved and why.

    $350 to $500 per document reviewed

    5 working days