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HR policies and procedures are essential to the safe, fair and legal operation of your business. Whether you’re a small start-up or an established SME, if you employ staff, you need to have robust policies and procedures in place. However, this is a large and complex area, which can be overwhelming, particularly for smaller organisations.
In this article, we’re going to explore the HR policies UK businesses need to know about. We’ll give you an overview of what policies are required by law in the UK, as well as guidance on how to choose the right policies to protect your business and its employees.
What are HR policies and procedures?
HR policies and procedures are formal guidelines that govern the management of an organisation’s workforce. They cover a wide range of topics, including recruitment, training, annual leave entitlement, disciplinary procedures and more. Outlining these policies allows businesses to set clear expectations and provides protection in the event of a legal dispute.
Why are HR policies in the UK important?
HR policies and procedures in the UK are designed to protect the rights of workers, while also clearly setting expectations for employers and employees about the specifics of a job role. As well as outlining details about a job role such as salary, working hours and annual leave entitlement, policies and procedures provide a framework for certain situations, such as recruitment and disciplinary processes. Certain
As well as helping you to meet certain statutory requirements and providing support should legal action be taken against your business, they also help with improving employee engagement. Ensuring that employees clearly understand what’s expected of them, and proactively giving them the information they need to report a grievance or request certain accommodations, supports clear lines of communication and mutual respect.
What policies are required by UK law in the UK?
While some HR policies and procedures are optional, and you can choose which ones to implement in your organisation, there are certain legal obligations that you must uphold as an employer. This includes policies that support compliance with legislation such as The Health and Safety at Work Act 1974, Employment Rights Act 1996, Equality Act 2010 and Data Protection Act 2018.
The HR policies and procedures UK businesses must implement to support their legal obligations include:
- Health and safety policy
- Equality and diversity policy
- Data protection and privacy policy
- Sickness, leave and absence policy
- Disciplinary and grievance procedures
10 essential HR policies and procedures you need
With so many different policies to consider, it can be difficult to prioritise what your organisation needs. We’ve put together 10 essential policies and procedures for your small business so you can ensure that you meet your legal obligations while also supporting your workforce.
1. Health and safety policy
A comprehensive health and safety policy is crucial to protect employees from workplace hazards and ensure compliance with legal requirements. This policy should include procedures for risk assessments, emergency responses and employee training to promote a safe working environment. You may also wish to include details about your employee assistance programme, if you have one, and how to use it to access mental health support.
2. Sickness and leave
An effective sickness and leave policy should outline the procedures for reporting illness and requesting time off, including parental and compassionate leave. Our sickness leave report shows that absence rates have been increasing in recent years, so it’s important to make sure that employees are aware of their entitlements, sick pay rates, and information regarding statutory sick pay.
3. Flexible working
Implementing a flexible working policy allows employees to request variations in their work schedules, including hybrid working options. All employees have the legal right to request flexible working, and while employers aren’t legally obliged to accept these requests, doing so helps to accommodate diverse needs and promote a healthy work-life balance. Flexible arrangements have become one of the most popular job perks in recent years, so making these accommodations can enhance overall job satisfaction and promote employee retention.
4. Bullying and harassment
policies and procedures covering bullying and harassment provide a clear framework for addressing and preventing inappropriate behaviour in the workplace. They should include formal processes for reporting incidents and conducting fair, consistent investigations to make sure that all employees are treated the same in the event of a complaint against them. These policies help to promote a safe and respectful environment for everyone.
5. Disciplinary and dismissal policy
A disciplinary and dismissal policy should set out the process for managing employee misconduct and performance issues. This policy helps to ensure that disciplinary actions are fair, consistent and compliant with legal standards, protecting the rights of both the employer and their employees. It should also cover the process relating to employee termination, which must be followed closely to prevent allegations of unfair dismissal.
6. Social media policy
This policy guides employees on the acceptable use of social media, both inside and outside the workplace. This is one of the newer HR policies and procedures, and some businesses might not understand its importance. However, by helping employees to understand the implications of their online behaviour and setting boundaries for what they can and can’t share online, social media policies help to protect the company’s reputation and minimise the risk of leaked information and privacy breaches.
7. Drugs and alcohol policy
A drugs and alcohol policy outlines the company’s stance on substance use and its impact on the workplace. This includes the procedures for testing, reporting and addressing substance abuse, as well as what constitutes grounds for dismissal. For some roles, such as those working with vehicles, heavy machinery or children, a strict, well-defined drugs and alcohol policy is absolutely essential. However, in any industry, these guidelines help to promote a safe, productive and professional working environment.
8. Expenses policy
An expenses policy provides clear guidelines on what constitutes acceptable business expenses and the process for reimbursement. This policy helps to streamline expense management, ensuring transparency and accountability in financial matters. While this won’t be relevant for all roles or industries, if your employees incur business expenses, it’s important to set expectations and build trust.
9. Grievance policy
A comprehensive grievance policy offers a structured process for employees to raise concerns and complaints. It ensures that grievances are handled promptly and fairly, fostering a supportive and communicative workplace culture. The grievance policy should also outline any relevant processes regarding dismissal procedures to ensure that serious grievances are escalated and dealt with in a suitable manner.
10. Equal opportunities policy
Your equal opportunities policy should promote a diverse and inclusive workplace by ensuring equal treatment for all employees. This policy should cover subjects such as fair pay, discrimination and promotion practices to enhance fairness within the organisation. As one of the most important HR policies for UK businesses to ensure compliance with equality and diversity regulations, taking care when developing this policy is essential.
How to develop and implement HR policies and procedures as an employer
Now you know what policies should a company have, it’s important to understand how to develop and implement them to ensure their effectiveness.
1. Assess the need for the policy
The policies and procedures that a company implements will depend on the unique needs of the organisation. Aside from the HR policies UK Government bodies enforce, there are some procedures that you may choose to implement to better support your workforce, such as employee wellness programs.
On the other hand, you may find that there’s no need or not enough demand for certain policies. For example, if your organisation operates in a sector where remote work is impractical, you might decide not to implement a comprehensive remote working policy.
2. Clearly define the policy
Ensuring that your HR policies and procedures are clearly defined and outlined is essential. As well as making it easier for HR managers and employees to adhere to and apply the policies, it also helps to ensure that they comply with relevant legislation.
Because these documents will be relevant to individuals in a wide range of roles, it’s important to use clear, simple language to increase comprehension and prevent misinterpretation. Including the policy date or version number can help everyone to keep track of the latest changes.
3. Communicate with employees
Whenever a new policy is added, or changes are made to an existing procedure, it’s important to inform all employees in writing as soon as possible. Make sure that any documents relating to HR policies and procedures are readily accessible to all employees, for example through a self-service portal.
If you provide a hard copy of your policies and procedures to new hires as part of your onboarding process, remember to check that you give them the most up-to-date version. This allows you to ensure that every employee is equipped with the information they need from day one.
4. Educate employees
It’s important to make sure that your employees understand your organisation’s policies, and how they apply. Consider e-learning as a tool to efficiently share this information and track completion rates.
Similarly, helping your employees to understand the different HR policies and procedures in the UK empowers them to comply and protect their legal rights. While this isn’t essential, it can be beneficial to support personal and professional development.
5. Constantly review and update
As your business grows and develops, so should your HR policies and procedures. Make sure to regularly review your current policies to make sure that they still meet your needs, and the needs of your employees.
What policies are required by law in the UK changes over time, such as the more recent addition of the employee’s right to request flexible working arrangements. Failure to update your organisation’s procedures could result in legal non-compliance, leading to potential fines, lawsuits and damage to your company’s reputation.
Create HR policies in the UK with support from cloud-based HR software
From knowing what policies are required by law in the UK to ensuring that any changes to HR procedures are communicated to employees in a timely manner, there’s a lot to manage. This can be particularly overwhelming for smaller businesses, or those experiencing a period of growth that necessitates an overhaul of current HR policies and procedures.
Implementing HR software can support the development and management of policies and procedures in your organisation, making it easier to ensure compliance so you can protect your business and its employees. Explore our free demo to see for yourself how PeopleHR can streamline these time-consuming processes for your HR team.
