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10 essential HR policies every business should have
Apr 2025
employment law
8 MINS

As employment law specialists in Newcastle, our partners have become experts in drafting and reviewing HR policies and procedures with over 70 years of experience.

In this time, we have seen firsthand how HR policies — in large and small businesses — play a key role in protecting employees and employers. HR policies not only help your business stay legally compliant but also support its strategic alignment, whether this be attracting top talent or building a sustainable work culture.

What are HR policies?

HR policies are a set of written guidelines that every business or company should have.

These guidelines can cover every aspect of human resources, from performance management and disciplinary actions to benefits and recruitment. They can act as a framework for business owners to help them make decisions and keep things fair in the workplace.

What is the role of HR policies?

Well-structured HR policies are designed to:

  • Ensure businesses stay compliant with UK employment laws
  • Stay updated with changing employment laws
  • Reduce the risk of employee disputes and claims
  • Provide clear expectations for employees
  • Create a positive and fair work environment
  • Streamline HR processes
  • Adapt to a business’s size, sector, and culture

What HR policies should a company have?

There are three HR company policies that every business must have by law. Along with these, there are many optional HR policies that may benefit your business.

Take a look below at the company policies required by law, and other common HR policies which we strongly recommend for any business:

1. Health and Safety Policy

Legally required for all UK companies with five or more employees, a Health and Safety Policy ensures that your business stays compliant with the regulations of the Health and Safety at Work Act of 1974.

As well as serving a legal purpose, it also aims to reduce the risks of work-related accidents, illnesses, and claims. Having a Health and Safety Policy in place also shows that, as an employer, you are taking the necessary steps to protect your team’s physical and mental wellbeing.

What should a Health and Safety Policy include?

  • A statement showing your business’s aims and commitment to health and safety at work.

  • Details of who is responsible for health and safety, their role, and any specific tasks.

  • A list of procedures for managing risks, such as accident prevention and equipment safety (this will vary depending on your business).

2. Disciplinary and Dismissal Policy

Legally required for all UK companies

To ensure your workplace stays legally compliant, you must provide clear policies on how your business addresses misconduct and poor performance. These policies will protect your business as they show you are complying with the ACAS Code of Practice. They also prepare employees for any potential outcomes due to poor behaviour.

What should a Disciplinary and Dismissal Policy include?

  • Clear examples of what counts as misconduct or gross misconduct.

  • Detailed disciplinary and dismissal procedures, such as warnings, investigations, and appeals.

  • Any potential outcomes, whether this be a warning, extended probation, or dismissal.

3. Grievance Policy

Legally required for all UK companies

A Grievance Policy shows employees how grievances are handled within the workplace, and encourages employees to raise concerns without fear of consequence. The policy offers a formal and structured way to resolve any concerns or complaints while staying legally compliant.

What should a Grievance Policy include?

  • How employees should go about raising a concern or complaint.

  • The stages of your business’s grievance process and approximate time frames for each.

4. Equal Opportunities Policy

Strongly recommended

An Equal Opportunities Policy shows that you recognise the protected characteristics referenced in the Equality Act of 2010: age, race, gender, and disability.

Having an Equal Opportunities Policy shows employees that you’re committed to creating an inclusive workplace and that you do not discriminate based on the above characteristics.

5. Data Protection Policy

Strongly recommended

With a Data Protection Policy in place, your business can remain legally compliant with the UK GDPR and Data Protection Act of 2018. It also notifies employees on how your business collects, stores, processes, and protects any personal data.

6. Whistleblowing Policy

Strongly recommended

A Whistleblowing Policy is recommended, as it can reassure employees that they should report any concerns or complaints. The policy guarantees that their concern will be handled confidentially and that they will not be penalised for raising it. These policies usually include the types of employee wrongdoings that should be reported, such as fraud, breaches, and anything that may cause harm.

7. Remote and hybrid working policy

Strongly recommended

In the post-COVID age, remote and hybrid working has become increasingly popular. With this in mind, a Remote and Hybrid Working Policy is designed to set clear boundaries regarding the employees eligible for this type of working and what is expected from them.

8. Sickness and Leave of Absence Policy

Strongly recommended

A Sickness and Leave of Absence Policy ensures that absences and illnesses are handled fairly, legally, and consistently. These policies also outline how an employee should report their absence, any entitlements they may be eligible for, and the different types of leave available to them.

9. Social Media Policy

Strongly recommended

Social media is a beneficial tool for many businesses, but it is important to have a Social Media Use Policy to protect your business’s reputation online and comply with confidentiality regulations. This policy is essential for letting employees know what is and isn’t acceptable while using social media at work or while employed by your company.

10. Anti-Bullying and Harassment Policy

Strongly recommended

An Anti-Bullying and Harassment Policy aims to protect employee wellbeing while safeguarding your business from workplace bullying claims. It should include examples of any behaviour deemed unacceptable, how employees should report bullying, the processes thereafter, and what your company will do to prevent any case of discrimination or harassment in the future.

Protect your business with HR support from Hay & Kilner

As employment law solicitors in Newcastle, we can help your business by reviewing or drafting watertight HR policies to protect your company and employees.

Our employment law team is well-versed in different types of HR policies, and can ensure your policies reflect your values and goals while keeping you legally compliant.

Learn more about our tailored employment law and HR services or look into HR Key, a service where we will manage your employment law risks for you for a fixed monthly fee.

For any questions or more information, don’t hesitate to contact us today.

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‘Hay & Kilner’ and ‘Hay & Kilner Law Firm’ are both trading names of Hay & Kilner LLP, a limited liability partnership registered in England & Wales with registered number OC418767. Our registered office is at The Lumen, St James' Boulevard, Newcastle Helix, Newcastle upon Tyne NE4 5BZ and we are authorised and regulated by the Solicitors Regulation Authority (Authorisation number 643191). We use the word ‘partner’ to refer to a member of Hay & Kilner LLP. A list of the members is available at our registered office.