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Employee Handbook

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Employee Handbook

SECTION GUIDE

What is an Employee Handbook?

An employee handbook is a key HR document that brings together an organisation’s essential policies, procedures, and expectations for employees.

It sets out rights and responsibilities, explains how workplace processes operate, and often includes company values and culture.

Importantly, most handbooks are non-contractual, which means they can be updated more easily than employment contracts. This flexibility allows employers to keep policies current as laws and business needs change.

What does an Employee Handbook mean in HR?

In HR, the employee handbook is more than a policy document — it’s a practical and cultural tool. It:

  • Communicates Expectations – helping employees understand standards of behaviour and performance.
  • Explains Legal Rights and Duties – ensures compliance with UK employment law (e.g. Equality Act 2010, Employment Rights Act 1996).
  • Provides Consistency – policies are applied fairly across the workforce, reducing risk of claims.
  • Supports Managers – gives line managers a clear framework for handling HR issues.
  • Strengthens Culture – handbooks often include mission statements, values, and perks that reinforce company identity.

  • Why does an Employee Handbook matter for your business?

    Legal and Compliance Protection

    • Some policies, like disciplinary and grievance procedures, are a legal requirement.
    • Documenting processes helps defend against tribunal claims.

    Risk Reduction

    • Reduces disputes by making rules transparent.
    • Ensures decisions are fair and consistent, lowering discrimination risks.

    Engagement and Retention

    Reputation and Culture

    • Demonstrates professionalism and structure.
    • Positions the business as a responsible, people-focused employer.

    Without a handbook, businesses risk miscommunication, inconsistent practices, and increased legal exposure.

  • Employee Handbook – best practices for Employers

    Make it Accessible

    • Store online and give hard copies to those without digital access.
    • Reference it during inductions and training.

    Keep it Up to Date

    • Review annually and update when laws change (e.g. Employment Rights Bill).
    • Communicate updates to staff promptly.

    Be Clear on Contractual vs Non-Contractual

    • Most handbooks should be non-contractual for flexibility.
    • If parts are contractual (e.g. notice periods, pay), make this explicit.

    Tailor to Your Business

    • Avoid generic downloads; customise to reflect your values, culture, and industry needs.

    Engage Employees

    • Involve staff in reviewing policies — it builds buy-in and engagement.

    Train Managers

    • Ensure managers understand how to apply policies consistently.

    Keep Records

    • Ask employees to sign or acknowledge receipt to avoid disputes later.

What should an Employee Handbook include?

A comprehensive employee handbook typically covers:

  • Welcome & Company Information

    • Introduction from leadership
    • Mission, vision, and values

    Employment Basics

    • Probationary periods
    • Working hours, breaks, and overtime
    • Flexible working policies
    • Pay, benefits, and pensions

    Conduct and Behaviour

    • Code of conduct
    • Equality, diversity & inclusion
    • Anti-harassment and bullying policy
    • Use of IT, email, and social media

  • Discipline and Grievances

    Ending Employment

    • Notice periods
    • Exit procedures
    • Return of company property

Your Questions Answered

FAQs on Employee Handbook

  • Do I need to update my contracts for Equality Act compliance?Reveal

    Contracts should reflect non-discrimination obligations, but the key is ensuring your policies and practices are compliant.

  • What size company should have a employee handbook?Reveal

    Any size. Even micro-businesses benefit from having clear policies.

  • Who should write the employee handbook?Reveal

    Usually HR, with input from leadership. Many SMEs use external consultants like impact HR.

  • How can an employee handbook improve workplace culture?Reveal

    By reinforcing values, promoting fairness, and highlighting employee benefits.

  • What risks are there if we don’t have an employee handbook?Reveal

    Increased risk of disputes, legal claims, and inconsistent treatment of staff.

  • Can parts of a handbook be contractual?Reveal

    Yes, but seek HR/legal advice as this reduces flexibility.

  • Can a employee handbook be digital only?Reveal

    1. Yes, but ensure all employees (including those without easy digital access) can use it.

  • Do employees need to sign the employee handbook?Reveal

    1. Not legally, but it’s best practice to record acknowledgement of receipt.

  • Can I just use a free template?Reveal

    Templates can help, but tailoring is essential to ensure compliance and cultural relevance.

  • How often should an employee handbook be updated?Reveal

    1. At least annually or whenever laws or company policies change.

  • Do SMEs need a handbook?Reveal

    Yes. Even small teams benefit from clarity and consistency in policies.

  • What’s the difference between a handbook and an employment contract?Reveal

    A contract is legally binding; a handbook is usually non-contractual guidance.

  • Is an employee handbook legally required?Reveal

    1. No, but some policies within it (like disciplinary and grievance) are legally required.

Where to find out more A collection of hand-picked useful resources in relation to Employee Handbooks from impact HR and beyond

Need support creating an Employee Handbook?

Whether you’re updating HR policies, training managers, or handling complex employee issues, impact HR can help you stay compliant, confident, and in control. Request a callback to see how we can support your business.

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