Which HR Policies Does My Business Legally Need in the UK?
If you're running a business in the UK, you might be wondering: what HR policies do I legally need to have in place?
It's a question we get all the time at The HR Guru – and the answer isn’t always as straightforward as you’d think. So, in classic They Ask, You Answer style, let’s break it down.
Do I have to have HR policies?
Yes – some HR policies are legally required in the UK. If you employ even just one person, you need to have certain policies and procedures in writing. Not just for best practice – but to stay compliant with employment law.
Skipping these can leave you exposed to claims, fines, or tribunal trouble. Not ideal.
So, what HR policies are legally required?
Here’s the bare legal minimum if you’re an employer in the UK:
1. Disciplinary and Grievance Policy
Why it’s required: Legal requirement under the Employment Rights Act 1996 and the ACAS Code of Practice.
What it should cover: How you handle complaints and misconduct, and the process employees can expect.
Format: Must be in writing and available to all staff.
2. Health and Safety Policy
Required if you have five or more employees.
Why: Required under the Health and Safety at Work Act 1974.
What it should include: Your commitment to safety, who's responsible, and how you’ll manage risks.
3. Statement of Terms and Conditions
Not technically a “policy” – but definitely a legal requirement.
You must give every employee a written statement of employment particulars on or before their first day.
It should include (or reference) key policies like sick pay, holiday, and working hours.
What HR policies aren't legally required – but still a very good idea?
Here’s where it gets interesting. These next policies aren’t mandatory, but if you want to protect your business, avoid grey areas, and keep your team happy, you should absolutely have them.
Equality, Diversity & Inclusion Policy - Shows commitment to fair treatment and helps defend against discrimination claims.
Anti-Bullying and Harassment Policy - Supports a safe working environment and helps you respond appropriately if issues arise.
Sickness Absence Policy - Clarifies when to call in sick, sick pay entitlements, and what happens if sickness becomes long-term.
Holiday Policy - Helps avoid confusion about booking time off, carryovers, or bank holidays.
Flexible/Remote Working Policy - Post-pandemic, this one’s a biggie. Good to set expectations around hybrid or remote work.
Data Protection Policy (GDPR compliance) - Essential for protecting employee data and showing compliance with UK GDPR.
Family-friendly policies (e.g. maternity, paternity, adoption, shared parental leave) - All of these are governed by statutory entitlements – having them clearly set out helps both you and your team understand the rules.
They also help you show you’re a decent employer. And in today’s competitive hiring market, that really matters.
What happens if I don’t have the right policies?
No sugar-coating it: you could be in trouble.
No disciplinary policy? You risk unfair dismissal claims.
No grievance procedure? Employees can escalate complaints without following an internal route.
No health & safety policy? You’re breaching legal duties and exposing your team (and yourself).
Even if nothing goes wrong (yet), the longer you leave it, the bigger the risk.
Can’t I just download a template?
You can – but they’re often:
Outdated
Not tailored to UK law
Not relevant to how your business actually runs
And that’s a recipe for problems. If your policy says one thing and your team does another, that’s exactly the kind of inconsistency a tribunal will jump on.
Here’s where The Handbook Guru comes in.
If the thought of writing, managing and updating HR policies gives you a headache, you’ll love what we’ve built.
The Handbook Guru is a digital policy portal that automatically updates – built for UK businesses like yours.
✅ We load it with the 15 core policies your business needs
✅ It's automatically updated when employment law changes
✅ You can tweak certain fields to suit your setup (like holiday allowance or shift times)
✅ You get a centralised, professional portal you can easily share with your team
✅ No printing, no version control, no stress
It’s a legally-compliant policy suite without having to write a single word yourself.
Final word from The HR (and Handbook) Guru
If you’re a UK business owner, having the right HR policies in place is about more than ticking a box – it’s about protecting your business and supporting your people.
We help small (and large) businesses get their HR policies sorted without the corporate fluff or jargon. Whether you need the essentials or a full policy suite, we’ve got you covered.
We’ll help you build a compliant, professional handbook that protects your business and supports your team – all with zero jargon.
👉 Click here to book a call or find out more about The Handbook Guru.