What are company policies?

Company policies often outline how organisations choose to approach health, safety and accountability in their workplace, as well as their interactions with customers and clients. Some employers create an equal opportunities policy to reflect the areas covered by the Equality Act 2010 and to support consistent internal practices.

Some company policies have to adhere by UK law; these are:

• Equal opportunities
• Health & safety
• Discipline/dismissal and grievance

Although the above workplace policies must be adhered to, there are very few laws in the UK that a company must comply with; the rest you can decide on the basis of what you deem to be suitable for the type of company you own.

Why are company policies important?

Company policies put in writing what you expect from your employees. These may be related to performance, values or behaviour. Additionally, company policy can serve as a pre-warning for employees, as they outline the consequences of failing to abide by the rules.

Company policies are important for a variety of other reasons, including:

• Setting expectations
• Keeping management accountable
• Ensuring compliance with the law
• Helping defend against legal claims
• Assisting with fair treatment of employees

List of company policies to consider creating

Here are some of the policies that your company should consider putting in place:

Health and safety

UK guidance notes that employers are generally expected to have arrangements in place for managing health and safety. Government resources outline how organisations can approach this.

The Management of Health and Safety at Work Regulations 1999 outline expectations around assessing hazards, considering risks and determining appropriate ways to manage them: 

• decide the likelihood of someone being harmed and the level of risk; and
• specify how to take action to prevent the hazard, or if in the case this is not possible, reduce the risk.

The more high-risk your business is, the more detailed arrangements for managing risks you will need. This should all be stated clearly in your company policy.

Equal opportunities In the UK, everyone is under the protection of the Equality Act 2010, which stops its citizens from discriminating on the basis of age, sex, race, disability, religion or belief, sexual orientation and pregnancy/maternity. Many organisations choose to create an equal opportunities policy to support consistent internal practices and reflect principles outlined in the Equality Act 2010. During the onboarding process, having this policy will make you more attractive to future employees, and shows how dedicated you are to creating a progressive workplace where they will feel safe and confident.

Code of conduct policy A code of conduct outlines your company’s ethical standards for the workplace, and protects your long-term reputation as a business. It should outline all of your workplace policies in a way that is clear, concise and easy for your employees to understand.

Your code of conduct policy may include an equal opportunities policy and an attendance policy, but it will be useful to consider and include these further policies:

• Social media, email and internet usage
• Dress code
• Behaviour
• Flexibility
• Company property
• Internal approaches to data protection and privacy

Many organisations find a clear code of conduct helpful for setting expectations and supporting internal processes. It will also protect your employees from claims made by clients, and should be referred to by both you and your employee during an employment tribunal.

Attendance, holiday and time-off policies

In the UK, there is statutory holiday leave and minimum statutory sick pay (SSP). UK legislation sets minimum statutory holiday and sick pay entitlements. Employers can refer to government guidance for current rates and requirements. Statutory Sick Pay (SSP) rates and eligibility criteria are set by UK legislation. Employers can refer to government guidance for current thresholds and amounts. In this case, you are required to pay them £96.35 a week for up to 28 weeks. Additionally, in England and Wales,

In England and Wales, there are typically eight annual bank holidays. Employers decide whether these days are included as part of an employee’s leave entitlement: 

• New Year’s Eve
• Good Friday
• Easter Monday
• May Day
• Spring Bank Holiday Monday
• Late summer (during August) bank holiday Monday
• Christmas Day
• Boxing Day

If you decide to include an unlimited holiday policy, the rules for receiving holiday pay must be written into your company’s policy. You must encourage staff to take statutory holiday leave on top of this.

Employee disciplinary action policy

Many organisations develop a clear disciplinary policy to outline internal expectations and how concerns may be addressed. Acas provides general guidance that employers often refer to when shaping their processes. Some organisations outline the different stages of their internal process so employees understand how concerns may be addressed. Acas guidance notes that organisations often distinguish between informal steps and formal written warnings when shaping their procedures.

Employee complaint policy

Many organisations shape their grievance procedures with reference to the Acas Code of Practice, and should be written into your employee complaint policy. Your employees should be able to find a copy of this in writing.

According to Acas, grievance processes generally involve steps such as outlining how concerns will be handled, conducting appropriate enquiries and allowing relevant parties to share information:

• Outline how they will deal with the procedure fairly.
• Investigate the grievance as thoroughly as possible.
• The employee can bring any relevant people to the meeting.
• Everyone involved has their fair say before you finalise a decision.
• Actions and decisions are made as soon as possible.
• The employee is allowed to appeal against the outcome.

Government guidance outlines factors employers may need to consider when making decisions about dismissal, including the context and procedural fairness. Organisations often seek legal advice for complex cases. 

How to develop company policies as an employer

If you want to develop business policies to address important workplace issues, consider following the steps below:

Identify the need for the policy

Observe the way your management and employees deal with workplace issues, and identify which areas could use improvement. For instance, if employees consistently violate unwritten rules, you may consider adding a new policy that addresses this and other related issues.

Determine the content needed for the policy

Write down key areas that need to be addressed within the policy. For instance, you can include different sections or clauses that prevent you or your employees from finding loopholes. Some organisations develop policies that reflect areas shaped by UK legislation, such as equality, health and safety, and processes for handling conduct or concerns.

Some organisations choose to seek independent professional advice when reviewing or updating policies. Consider all aspects of the policy, what you would like your employees to do and what you would like them to avoid doing. Some employers review policies to ensure they align with relevant legislation and reflect how the organisation chooses to manage different situations

Communicate the new policy to employees

Current employees need to be notified of new policies when they are released or added to the employee handbook. Some organisations ask employees to acknowledge receipt of updated policies so they are aware of any changes. This prevents conflict later on if an employee states they were never aware of the policy after receiving disciplinary action for violating it. It’s also important to review and discuss company policies with new employees when you have hired them. Consider having them sign a form stating that they were given an employee handbook or a list of your policies, rules and regulations.

Update and revise the policy as necessary

You may consider amending or revising your policies as necessary in accordance with laws and regulations or according to your company’s objectives and any employee feedback. There are certain business policies that are shaped by UK legislation, while others are optional and vary by organisation.