Essential Employment Policies for UK Businesses with 5+ Employees

As your business grows and reaches five or more employees, UK law requires you to implement specific employment policies to ensure compliance, protect your business, and create a fair working environment. Failing to meet these legal obligations can lead to fines, disputes, and reputational damage. This guide covers the essential policies every UK business with five or more employees must have.

1. Health and Safety Policy (Legal Requirement)

Under the Health and Safety at Work Act 1974, businesses with five or more employees must have a written health and safety policy. This policy should outline:

• Your company’s commitment to maintaining a safe workplace.

• The responsibilities of employers and employees regarding health and safety.

• Procedures for managing risks, reporting hazards, and responding to emergencies.

Why it matters: A well-structured health and safety policy reduces workplace accidents, ensures legal compliance, and protects your employees from harm.

2. Disciplinary and Grievance Procedures (Legal Requirement)

Employers must have a written disciplinary and grievance procedure, as outlined by the Employment Rights Act 1996 and the ACAS Code of Practice. This policy should cover:

• The process for addressing employee misconduct or poor performance.

• Steps employees should follow if they have a workplace grievance.

• The right to appeal disciplinary decisions.

Why it matters: Clear procedures help prevent disputes, ensure fair treatment, and protect your business from legal claims.

3. Equality and Diversity Policy (Strongly Recommended)

Although not legally required, an Equality and Diversity Policy helps businesses comply with the Equality Act 2010, which protects employees from discrimination based on age, gender, disability, race, religion, or sexual orientation. Your policy should include:

• Your commitment to promoting equal opportunities.

• How discrimination, harassment, and victimisation will be handled.

• Procedures for employees to report discrimination concerns.

Why it matters: A diverse and inclusive workplace fosters productivity, protects against discrimination claims, and improves company reputation.

4. Data Protection and GDPR Policy (Legal Requirement)

Since the introduction of the UK GDPR and Data Protection Act 2018, businesses must have policies in place to ensure the secure handling of personal data. Your Data Protection Policy should include:

• How employee and customer data is collected, stored, and processed.

• Employees’ rights regarding their personal data.

• Measures taken to protect data from breaches.

Why it matters: Non-compliance with GDPR can lead to fines of up to €20 million or 4% of global turnover.

5. Workplace Health & Wellbeing Policy (Strongly Recommended)

A Workplace Health & Wellbeing Policy outlines how your business supports employees' physical and mental health. This can include:

• Flexible working arrangements.

• Mental health support and stress management strategies.

• Resources for maintaining a healthy work-life balance.

Why it matters: Supporting employee wellbeing improves productivity, reduces absenteeism, and enhances job satisfaction.

6. Remote & Hybrid Working Policy (Recommended for Modern Workplaces)

With remote and hybrid working becoming more common, having a Remote Working Policy ensures clarity and consistency. This should cover:

• Eligibility for remote working.

• Expectations for communication, security, and performance.

• Health and safety responsibilities for home workers.

Why it matters: A clear policy ensures accountability and helps remote teams stay aligned with business goals.

7. Social Media & IT Usage Policy (Recommended)

A Social Media & IT Usage Policy ensures employees use technology responsibly and protects your business from reputational harm. This policy should define:

• Acceptable and unacceptable use of company IT resources.

• Guidelines on social media activity related to the business.

• Consequences of misuse or breaches of cybersecurity.

Why it matters: Prevents security risks, data leaks, and damage to your company’s reputation.

How We Can Help

At 5 & Above, we provide expert guidance and tailored policy templates to help businesses stay compliant and avoid costly mistakes. Whether you need one-off policy creation or ongoing HR and compliance support, our services ensure your business is protected without the need for an expensive in-house team.

📩 Get in touch today to ensure your business is fully compliant!