Is Your Business Compliant?

We talk about;

• Your Legal  Responsibilities
• A Contract of Employment
• Legal & Statutory Company Policies
• Recommended Policies
• Staff Handbook
• HR Software

Contract of Employment 

It is not a legal requirement to provide employees with an employment contract. However, employees and workers must be provided with a ‘Written Statement of Employment Particulars’ that includes required information such as pay and working hours on or before their first day.

An Employment Contract provides much more detail than a ‘Written Statement of Particulars’ and therefore offers a business greater protection.

The employer will be ordered to pay the employee two weeks’ pay (subject to the statutory cap on a week’s pay) or, if it is just and equitable in the circumstances, a higher amount of four weeks’ pay (subject to the statutory cap). If there are exceptional circumstances where it would be unjust and inequitable to make an award against the employer, none will be made.

If you don’t do this, the employee can make a claim at an employment tribunal where compensation of 2 or 4 week’s pay may be awarded.

What are the company policies your business must have?

Employment policies (UK) required by Law?

There are some important policies your business will need to be compliant with British law. These are:

• Equality, Diversity & Inclusion.
• Health & Safety.
• Discipline/Dismissal and Grievance.

What policies should a small business have (UK)?

The below examples don’t represent an exhaustive list. You may want to consider creating personalised policies to suit your business or industry. So what are the list of policies a company should have? Let’s take a look.

1. Equality, Diversity & Inclusion

Although it’s not stated as a legal requirement, the Code of Practice to support the Equality Act 2010 recommends that you implement a policy.

Construct the policy in a way that ensures fair treatment and prevent discrimination on the grounds of protected characteristics such as gender, race and religion.

While failing to have a policy in place is not unlawful, a tribunal will take a negative view of this should you have to defend against claims of discrimination.

2. Fair disciplinary hearings

The Employment Rights Act 1996 requires you to give employees a note specifying any procedure that applies to disciplinary decisions and the steps involved in dealing with a grievance.

In addition, the Acas Code of Practice on disciplinary and grievance procedures recommends that employers introduce a policy outlining their commitment to fair disciplinary hearings and explaining their grievance reporting procedures to staff.

This will be important in guiding the behaviour of employees, while also providing a useful framework for managers in charge of disciplinary investigations.

Employment Tribunals also reserve the right to add an uplift to compensation payments for any employers who suffer a loss at tribunal and fail to follow the Acas Code of Practice.

3. Personal data

Arriving in 2018, the General Data Protection Regulation  (GDPR) places a number of requirements on you when it comes to managing and processing personal data.

To make sure you comply with these requirements, you can choose to implement a policy that outlines your right to process personal data and explains to customers and staff some of the consequences.

4. Lateness and time off

Certain policies such as those on lateness, sickness absence and use of company property can be effective in moderating employee behaviour, whilst simultaneously forming the justification for taking punitive action against them.

Although these are not legally required, incorporating such policies will place employers at a significant advantage, as staff will be unable to claim that they were unaware of the expectations placed upon them, providing the justification to take punitive action.

Although there are very few policies that are a strict legal requirement, many detail key commitments and are therefore commonly incorporated as part of a best practice approach to prevent unlawful activity.

Ultimately, you should ensure they have an adequate set of policies which are appropriate for the size and nature of their organisation.

5. Company ethics

But what about your ethical policy—is company ethics policy required by law? Every business should have one.

As a code of values, it’s an integral guideline on your business values. And on an external level it displays what your code of conduct is for employees and the public.

6. Environmental policies

There’s an increasing demand from the public and governments to take their environmental policies seriously. And in certain industries, such as construction, there are environmental requirements you will need to follow.

This is especially the case if Does every company require an environmental policy by law? Well, there are certain responsibilities you may want to consider if you’re an SME. This can include energy management and water wastage.

Plus, you may want to begin initiatives such as recycling policies. But for more ideas, you can get in touch with us for tips and guidance.

7. Equal pay

With the Equality Act 2010 and gender pay reviews it’s now essential to have a fair and regularly monitored equal pay policy. This ensures your staff members are all treated fairly, cutting out any gender bias and monitoring your workforce’s wages.

Staff Handbook

We recommend implementing a Staff Handbook to support your business and protect your business and your people.  A comprehensive employee handbook not only provides legal protection for an organisation, it also sets out clear expectations of what an employee can expect from the company, in terms of working conditions, fairness and consistency of treatment, benefits and rewards etc and what the company can expect in return; employee behaviour, performance and adherence to policies and procedures to name but a few.

Management Tool 

Employee handbooks that clearly outline key policies and procedures means that managers don’t have to worry about how they need to respond to a situation, it is all clearly laid out for them and the employee.

Defending a Claim

When it comes to defending an employee claim, an up to date and legally compliant employee handbook will be vital in demonstrating that the Company has exercised “reasonable care” towards its employee.  Having an acknowledgement page that the employee has signed to say that they have read, understood and agree to comply with the terms contained within will only strengthen the Company’s position, should it find itself in the unfortunate situation of needing to mount a defence.  They then can’t argue that they weren’t aware of the rules!

Company up to date Policies, Procedures & Staff Handbook

Why is it important to implement these documents and keep them up to date?

Policies provide a positive framework and structure for a business. Policies are important in a workplace as it helps reinforce and clarify the standards expected of employees and help employers manage staff more effectively as it defines what is acceptable and unacceptable in the workplace.

• They set Expectations – Policies and procedures allow an employer to commit to writing the company’s values and mission.  They also set standards of behaviour, conduct and performance for employees;
• Keep management accountable – This provides guidance to managers for how they are to conduct themselves and the standards they will be held to, but also provides transparency to the rest of the workforce as they can see the standards expected of their leaders and what they can in turn expect from their managers;
• Ensure compliance with the law – Policies and procedures that are regularly reviewed and updated will assist a company in meeting its obligations at law;
• Let employees know where to turn for help – Finally, policies and procedures let employees know where they can turn to for help.  All policies should have a point of contact for queries relating to that policy so employees know who they can contact with questions.

Top tips

• Review and update your handbook at least once a year to ensure it remains legally compliant and reflects the current and future needs of your business.
• Ensure the employee handbook is accessible for all, soft copies, hard copies, it doesn’t matter which, what matters is that everyone has access to it and they read it!
• Train your managers to ensure they understand how to implement the policies and procedures in a fair and consistent way.
• Ensure that you clearly communicate any updates to the handbook to all members of the team and make a record that this has taken place.
• Ensure that your handbook clearly states that it is non-contractual, unless otherwise stated and that it may be subject to change in order to ensure it remains relevant and consistent with legislation and the ongoing needs of the business. The ability to vary the handbook without requiring formal consent can save you valuable time and energy.

Did you know you can also attach your Company Documents to Our Craven HR Software to streamline your processes and make it easier for Your people 

Craven HR Software – Online HR System

Why is HR Important For Small/Medium Businesses? – Craven Consultancy Services

Why do you need HR as an SME or Start Up? – Craven Consultancy Services

Need more help?

Still wondering what policies should a business have? With our expert business consultancy, we can help you stay compliant with British laws. Call us on: