Businesses can use policies to put in writing what is expected of employees in terms of behaviours, values and performance. They essentially outline the rules you wish your employees to follow and the consequences of their not adhering to them.
What is the difference between contracts and policies?
- Employment contracts are legally binding agreements which set out the rights and responsibilities of employer and employee
- Policies are rules that set the standards expected of an employee, such as a dress code, internet usage or how they should deal with customers
Why do businesses need policies?
Clear policies, which are communicated well, adhered to and updated when necessary, can benefit both employers and employees.
They can:
- Manage employees’ expectations
- Help employees understand their rights
- Set standards in the workplace to aid employee management, including reducing the risk of workplace injuries and illness
- Make a workplace more attractive to potential employees as you are able to demonstrate that you take important matters seriously, such as discrimination
- Ensure consistency amongst your workforce
- Ensure legal and ethical compliance
Not only can policies make a workplace safe and enjoyable, but they can also help protect your business from costly and stressful disputes.
How do I communicate my business policies with staff?
Policies are typically included in employee handbooks which should be accessible to all staff members, either online via an intranet or in hard copy form. They should be discussed during the orientation process for new staff to ensure they are understood.
You may also wish to provide training sessions periodically, when new policies are implemented, older ones updated, or to increase understanding if one or more policy is not being routinely complied with.
Which policies do I need?
To comply with UK law, a business typically needs to have as a minimum:
- Health and safety (only a legal requirement if your business has five or more employees, but always recommended)
- Discipline and dismissal
- Grievance
Health and safety
Your health and safety policy must include:
- Potential hazards in the workplace that could cause illness or injury to staff or visitors, such as customers or delivery people
- The level of risk, so how likely it is that someone will be harmed
- Actions needed to prevent the hazard altogether or, if that isn’t possible, reduce the risk of it causing harm
Discipline and dismissal
These outline the procedure for managing employee misconduct and dismissals which must be fair, legally compliant and transparent to reduce the risk of disputes and potential unfair dismissal claims against you.
Grievance
A grievance policy outlines the process for when an employee wishes to formally raise concerns or make a complaint. It should include how an employee submits a grievance and how it will be handled.
Other policies
You may also choose to put other policies in place depending on the size and type of your company.
These could include:
- Code of conduct – depending on the type of business you own, this could cover use of company property, social media and internet guidelines, dress code, standards for dealing with customers/clients and more
- Data protection – this would cover GDPR and how you expect employees to store and use data, plus what to do if there is a breach
- Cyber security – this varies greatly depending on your business type, but it could cover password management, device usage and security, and what employees need to do if there is a breach
- Equal opportunities – this protects employees from discrimination on the basis of age, sex, race, disability, religion or belief, sexual orientation and pregnancy/maternity
- Equality and diversity – this outlines how you create a safe and inclusive workplace for all employees
- Workplace pension – if an employee is eligible for a workplace pension, you must provide information on entitlement and contributions
- Training and development – if you invest in employee development, a policy could outline the structure of training and what opportunities are available
- Flexible working, including location – this could outline how you handle requests for flexible working and expectations for remote and hybrid workers
- Sickness/absence – this could outline your policy for various employee absences, including short and long-term sickness, how employees report sickness and the payment of absent staff
- Maternity, paternity and parental leave – this helps employees know their rights and responsibilities and how you’re complying with employment law
You may also want to implement policies when specific issues occur, such as drug and drink misuse or bullying.
What could happen if you don’t have robust, legally compliant policies in place?
If you fail to comply with legal requirements as an employer, you risk exposing your business to fines, employment tribunals, breach of contract claims and enormous reputational damage.
Below are some examples:
- Unfair dismissal – in 2023, a man was paid £800,000 after an employment tribunal found he had been unfairly dismissed. The Judge ruled in favour of the claim, stating that there were ‘no reasonable grounds’ for the employee to be sacked
- Discrimination – A woman was paid £215,000 in a discrimination settlement when she alleged she was excluded from a promotion opportunity during her maternity leave. The firm instead promoted the person who had covered her absence. She also applied for reduced hours because of her childcare needs, but was offered an alternative role rather than going back to her own job with fewer working hours
- Injury at work – A woman working for a restaurant chain received an undisclosed amount of compensation when her skin was ‘melted’ by an industrial cleaning fluid after claiming she wasn’t given personal protective equipment (PPE). She required specialist washing treatment at A&E to remove the detergent and has been left with a permanent scar
Get in touch with us if you need support with your business policies
At AGR Law, our team can support you in all matters relating to business policy, both those that are legally required and those that are not.
We can also assist with the creation of staff packs or employee handbooks and deliver training to ensure rights and responsibilities are communicated clearly.
Contact us on 0116 340 0094 or email hello@agrlaw.co.uk
