Top 5 FAQs about HR policies for UK small business owners

1. Why does my business need a HR policy?

A HR policy is crucial for establishing clear expectations, ensuring consistency and protecting your business legally. It serves as a comprehensive guide for you and your employees, detailing the standards, procedures and guidelines for your workplace. Even if you have only a few employees, a HR policy handbook can help prevent misunderstandings, reduce conflicts and ensure fair treatment across the board.

Benefits of having a HR policy:

• Legal compliance: UK employment laws require specific policies to be documented, such as health and safety, disciplinary and grievance procedures.

• Consistency: A central HR policy helps maintain a consistent approach to managing issues like attendance, performance and conduct.

• Clarity: It ensures employees understand what’s expected of them and what they can expect from you as an employer.

Find out more about HR policies here.

2. What should a HR policy include?

The HR policy should be tailored to your business’s needs, but typically a HR handbook will include:

1. About the handbook - this section sets out the purpose of the handbook and also clarifies who the handbook applies to (e.g. employees only or employees, contractors and workers).

2. Company policies - This section includes the option to refer to other policies that the company already has in place. This could include, for example:

   • Grievance policy

   • Disciplinary policy

   • Data protection policy

   • Health and safety policy

   • Equal opportunity policy

   • Anti-bribery policy

   • Whistleblowing policy

   • Ethical sourcing policy

   • Anti-slavery policy

3. Code of conduct - This section includes a code of conduct and expected behaviours that employees must adhere to when performing their role.

4. Performance and development - This section includes the company's policies on performance and development initiatives (e.g. training, performance reviews).

5. Absences - This section sets out the company's policies in relation to different types of absences from work (e.g. sickness, holidays, compassionate/bereavement leave and long-term absences (such as maternity and paternity leave)). Where statutory payments can be claimed, this section reflects the laws and procedures that relate to those statutory payments and eligibility for them (e.g. statutory maternity/paternity/adoption pay, statutory sick pay).

6. Equipment - This section sets out the obligations that employees must comply with in relation to any equipment that is provided to them by the company (e.g. IT equipment).

7. IT and security - This section sets out the policies and standards that employees must comply with when using IT equipment, in order to ensure that such equipment is used in a secure and safe way.

8. Expenses - This section sets out the company's policy in relation to expenses incurred by employees, including the types of expenses that will be reimbursed by the company. It also sets out the procedure for claiming expenses.

9. Contact details - This section sets out who is responsible for this handbook and who to contact with any queries about the handbook.

3. How can I communicate the HR Policy effectively to my employees?

It's essential that your employees understand and adhere to the procedures outlined in your HR policy. Effective communication is key to making sure everyone is aware of and follows the guidelines.

Tips for communicating your HR policy:

• Introduce during onboarding: Ensure new employees are introduced to the HR policy during their onboarding process so they understand expectations from day one.

• Provide digital access: Make the HR policy easily accessible on a shared online platform, intranet or company website for employees to reference at any time.

• Offer regular training: Hold training sessions to reinforce key policies, such as health and safety, data protection or anti-harassment guidelines.

4. How often should I update my HR policy?

Your HR policy should be a dynamic document that evolves alongside changes in employment law, business practices and workforce needs. Regular updates ensure your policies remain relevant and effective.

When to update your HR policy:

• Legal changes: Whenever UK employment laws change, ensure your handbook reflects these updates.

• Business growth: As your business expands or evolves (e.g introducing remote work or new technology), update your policies accordingly.

• Annual review: Conduct an annual review of your HR policy to ensure it aligns with current business practices and goals.

5. How can I create a HR policy?

Docue is easy to use: With Docue, you can create a top-quality HR policy in just minutes. The HR policy template includes model clauses designed by our lawyers to help you draft the handbook yourself and tailor it to your needs. Guidance notes that have been drafted by our lawyers are included throughout to help you through the document creation process.

Secure storage: All legal documents that you make are securely saved in your company's own contract account, Docue Drive.

Sign up now to use Docue's HR policy template.