How to Create an Employee Handbook

What should be in your employee handbook?

Employee handbooks are often shared as part of the induction process with new staff to provide guidance and information on ways of working, rules and policies that relate to their employment.

There is no legal requirement to have an employee handbook, although organisations must make clear that disciplinary and grievance procedures are in place, even if they signpost staff to the ACAS statutory code rather than having a policy of their own.

Organisations must also be clear about what data is processed and on what basis which should be detailed in a Data Protection (GDPR) Policy or an Employee Privacy Notice.

For employers must 5+ staff, a written Health & Safety Policy is also mandatory.

Whistleblowing Policies may be legally required if you operate in Financial Services, or regulated activity.

There is no legal requirement to have any other policies in place, unlike the legal requirement to provide a written statement of terms and conditions of employment from day one.

So why do so many organisations have an employee handbook?

There are a number of benefits to creating and sharing an employee handbook:

• A handbook ensures that policies and processes are applied and followed consistently.

• A handbook reduces the risk of grievances, claims, and tribunal cases by reducing inconsistent practices amongst managers and staff, and setting out the organisation’s actions and steps that are in place to prevent discrimination, harassment, inequality of opportunities etc.

• It manages employee’s expectations of treatment, benefits, and procedures.

• It communicates culture, ways of working, and workplace values.

What should be included in a staff handbook?

Alongside Disciplinary & Grievance, Data Privacy and Health & Safety, a handbook is a suitable place to provide information about benefits such as pension scheme, private medical, death in service etc.

There are other policies that are recommend for all organisations, such as:

• Managing Absence

• Annual Leave

• Equality, Diversity, and Inclusion

• Dignity at Work / Harassment

• Code of Conduct

• Smoking and Alcohol Policies

It can also provide an excellent opportunity to describe the culture by sharing the history, ethos, and values of the organisation.

A handbook should contain a note that the policies and procedures are non-contractual which enables an organisation to update and improve policies without formal consultation procedures.

What is the best way to share our handbook?

Many organisations have moved away from a printed version of the employee handbook and instead add it to a shared drive or intranet, or to the HR software system, or of course, it can be emailed to everyone. Using dated versions to ensure the latest iteration of the handbook is being referred to is important.

A series of separate policies can be saved in a shared file or uploaded to HR software if the organisation prefers to move away from one lengthy document.

How can I make sure employees read the policies?

You can ask employees to acknowledge receiving the handbook and indicate that they have read and agreed to the polices within it by signing a form or confirming by email that they have read and understood the contents.

This is particularly important if your handbook includes any contractual policies, or refresher training or content is required regularly.

How often should policies be reviewed?

Policies should be regularly checked and reviewed to ensure that they accurately reflect and changes in legislation, and the latest thinking and best practice, alongside changes within the organisation.

Remember that when you update any contractual policies, you will need to consult with staff and ensure that employees’ consent to amendments, whereas non-contractual policies allow updates to be made without specifically consulting staff in advance. Ensuring staff are aware of changes and referring to the latest version of your policies is key.

Still not sure where to start?

Why not get in touch to purchase an employee handbook template, or discuss having a bespoke handbook created to reflect your organisation’s policies and procedures?

Simply pick up the phone to discuss what you might need 01793 311937 or email us via clientservices@robinsongracehr.com.

Frequently Asked Questions:

1. Is it a legal requirement to have an employee handbook in the UK?Answer: No, it is not a legal requirement to have an employee handbook in the UK. However, employers must provide a written statement of terms and conditions of employment from day one, as well as ensure that disciplinary and grievance procedures are in place. A staff handbook is strongly recommended as it helps communicate company policies, sets expectations, and ensures consistency across the workforce. Having a clear handbook also reduces the risk of employment disputes and employment tribunal claims, making it a valuable tool for compliance and HR management.

2. What policies should be included in a UK staff handbook?

Answer: A UK staff handbook should include both legally required policies and best practice policies. The essential ones are Disciplinary and Grievance Procedures, Data Protection and GDPR policies, including a Privacy Notice, and a Health and Safety Policy for organisations with five or more employees. In addition, most businesses benefit from including policies on Equality, Diversity and Inclusion, Absence Management, Annual Leave, and Dignity at Work or Anti-Harassment. Many employers also use the handbook to outline employee benefits such as pensions, private medical cover, and workplace culture, ensuring staff understand both their rights and the organisation’s values.

3. How often should an employee handbook be reviewed and updated?

Answer: A staff handbook should be reviewed regularly to ensure it reflects current UK employment law, HR best practice, and internal company changes. As a rule of thumb, businesses should review their employee handbook at least once a year, or sooner if there are significant legislative updates such as changes to employment law, data protection, or health and safety regulations. Keeping your handbook up to date not only ensures compliance but also builds trust with employees by showing that policies are accurate and relevant.

Check out other Blogs in our series

What UK Small Businesses Need to Know to Stay Legally Compliant as They Grow

An Employer’s Responsibility to Consult on Change

Guide to Managing Annual Leave

The content of our blogs is intended for general information and not to replace legal or other professional advice.

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