What written policies should an employer have?

Whilst there are few mandatory requirements on employers in this area (ie situations in which you must have a policy document), having a comprehensive set of policies can assist to achieve a safe, productive and fair working environment. Appropriate policies, implemented correctly, help establish clear expectations, reduce legal risk by making sure employees understand the legal rights and responsibilities that apply to them and help managers make decisions consistently.

There is a minimum level of information which must be given to employees in writing – please see our checklist[1] on what needs to be included within the statement of written particulars to comply with employment legislation.

Some information, however, is either optional to provide or can be given within a staff handbook or other “reasonably accessible document”. Staff handbooks are typically expressed to be “non-contractual” in order to provide maximum flexibility for the employer to change the contents without requiring the agreement of employees. This is usually where the employer’s various policies on different topics are set out. Even if a staff handbook is in principle non-contractual, it is relevant to understand how a policy is applied because it can become binding (i.e. contractual) through custom and practice such as where an employer invariably does “x” or provides “y”.

One of the primary purposes of a handbook is to communicate standards for conduct and performance. This enables employees to understand company values and the importance the employer places on such matters as well as any particular requirements or standards relating to the industry sector concerned. For instance, licensed financial services firms have to ensure that key persons/those in senior managerial roles are “fit and proper”. In some other professions, integrity and good standing may be similarly important and the employer entitled to hold employees to high standards.

The employee handbook therefore sits alongside and supplements an employee’s contract of employment.

Whilst not exhaustive, we have set out below an A-Z list of policies which are commonly found within a staff handbook. Note, however, that a one-size-fits-all solution is not necessarily the best approach; which policies you need and how they are drafted are likely to depend on the size, culture and specific business needs of your organisation.

A-Z Policies

Anti-bribery & corruption or “ABC” policy – particularly financial/regulated sector employers

Capability – as distinct from a disciplinary policy, assists with managing performance

Conduct & ethics – may set out particular examples of behaviours which are considered unacceptable including the employer’s definition of gross misconduct

Conflicts of interest – should explain what a conflict is, how and whom to notify and its implications from a governance perspective, especially relevant to financial/regulated sector employees

Data protection – as part of the employer’s compliance with the Applied GDPR, to outline the employee’s obligations regarding the processing of other people’s personal data

Data retention or records management – to set out how the organisation classifies and manages the retention and eventual disposal of information (including how long different types of record will be kept)

Disciplinary rules and procedures – the statement of written particulars should identify someone to whom the employee can apply if they are dissatisfied with a disciplinary decision. Going beyond this, a policy/procedural document will typically set out details of the employer’s process including the right to be accompanied, sanctions (ie the use of oral/written warnings and ultimately dismissal in an appropriate case) and any right of appeal

Dress code – the need for this may depend on the employer’s business, eg whether there are health & safety hazards that need to be taken into account (eg making loose clothing inadvisable or the use of protective workwear necessary), whether strict hygiene protocols have to be followed, if there is a corporate or branded “uniform” that employees are required to wear etc

Equality, Diversity & Inclusion or “EDI” policy – to underline an organisation’s commitment to eliminating discrimination and harassment and to promoting equality of opportunity between those with a “protected characteristic” for the purposes of the Equality Act 2017 and those without

Expenses – this would generally deal with claims for reimbursement of business costs (eg travel, accommodation and client entertaining) and the evidence of expenditure which employees need to provide as well as the authorisation process to follow

Family leave (eg adoption, maternity, paternity, parental leave etc) – either a “combined” policy or separate policies for the different types of leave depending on client preference and practical considerations such as ease of updating documents. In either case, the policy (or policies) should set out the statutory leave right, procedure for taking leave including notifications required and any provision for company pay related to the leave taken

Flexible working policy/procedure – reflecting employees’ right to request changes to their working arrangements, this should set out the employer’s formal procedure to deal with flexible working requests and detail the decision making process, timeframes and the availability of an appeal, where relevant

Gifts and hospitality – can be used to support a wider ethics and standards agenda, should set out what is an acceptable level of corporate hospitality and thresholds for reporting etc

Grievance procedure – employers need to specify in writing to employees the person to whom they can apply for redress of any grievance (ie work related complaint). A grievance procedure may additionally set out the means by which a grievance will be investigated and a decision made as well as the right of appeal if a complaint is not upheld

Health & safety – any business which employs 5 or more people is required to have a written policy for managing health & safety in the workplace. The policy should set out the general approach, explaining how the employer will manage health & safety of staff and visitors to the premises, including who will do what, when and how

Holiday – an employee’s holiday entitlement must be set out in their written particulars, however a policy/procedural document may additionally specify the process for requesting and taking leave, carrying over holiday (where permitted), recrediting holiday if an employee becomes sick whilst on annual leave and payment for accrued, untaken, holiday on termination of employment

Homeworking – to set out the conditions on which staff can work from home either occasionally or on a regular basis and incidental matters such as equipment, confidentiality, health & safety etc

IT and communications – to deal with the acceptable use and monitoring of IT and communications systems

Misuse of drugs and alcohol in the workplace – it may be helpful to have a policy which sets out expectations and rules regarding drugs/alcohol and the consequences if these are not met or breached, respectively. The policy may set out the employer’s right to test, any support offered by the employer and the potential for disciplinary action

Personal relationships – again, there is no requirement to have such a policy but it can be helpful to mitigate some of the challenges that come not just from romantic relationships between co-workers but also familial relationships and very close friendships including potential conflicts of interest, confidentiality concerns and, where a romantic relationship ends acrimoniously, possible risks of harassment and sex discrimination claims

Sickness absence – whilst written particulars need to set out any terms and conditions relating to incapacity for work including any provision for company sick pay, a policy may additionally set out requirements for notifying (and evidence to be provided in connection with) sickness absence. It can also be helpful to cover management of long-term sickness absence, referrals to occupational health/other specialists and return to work support

Social media – this may form part of an IT and communications policy (see above) or be a stand-alone document. Will usually deal with the acceptable use of social media including Facebook, X (formerly Twitter) LinkedIn, Tiktok, blogs and forums. Implementing a pragmatic and enforceable social media policy allows an employer to minimise the risks associated with employee use of social media including reputational damage, misuse of confidential information and regulatory repercussions, where relevant

Redundancy – to set out the employer’s intended approach in dealing with redundancy situations including consultation, selection, redeployment and dismissal as well as any enhancement to statutory redundancy pay

Whistleblowing – there is not generally a requirement on employers to have a whistleblowing policy or procedures but an internal policy/procedural document can be helpful as a matter of good practice. Procedures which are straightforward, and which employees have confidence in, can encourage internal reporting and enable the employer to take appropriate action to remedy any issues at an early stage

How often should policies be reviewed?

Once you have put in place written workplace policies, it is important to ensure that these remain up to date and legally compliant. If there are any important changes or developments in the law, you will need to review your policies and make any necessary amendments to ensure that they are still fit for purpose. Where any policies are updated, all staff should be made aware.

Cains’ employment specialists regularly advise on the benefits of having and/or the need to have workplace policies taking into account the industry sector and scale of the employer’s business plus any particular risk factors inherent in the employer’s business model. Our involvement can range from reviewing or drafting a single policy document to providing a full staff handbook or comprehensive suite of policies.

And finally, a quick reference guide to the key differences between policies & procedures

Policies                                               Procedures

____________________________________________________________________________________________________________________

Reference:-

[1] See checklist on written particulars.