Checklist: Drafting a staff handbook (UK)

Introduction

This checklist provides in-house counsel, private practice lawyers and human resource professionals working in England, Wales and Scotland (GB) with guidance for planning and preparing a staff handbook. This checklist does not apply to Northern Ireland, where employment law is devolved to the Northern Ireland assembly.

This checklist addresses the following steps:

1. Understand the purpose and legal status of staff handbooks
2. Consider the preliminary issues
3. Prepare an introduction
4. Include policies and procedures that apply to employees
5. Include other workplace policies, procedures and rules

This checklist can be read in conjunction with How-to guide: Overview of employment law and Checklist: Identifying, reviewing and updating the terms of an employment contract.

Employers should be aware that the Employment Rights Bill 2024, introduced on 10 October 2024, aims to significantly enhance worker protections in the UK. Key provisions include granting day-one rights for unfair dismissal, paternity, parental, and bereavement leave, changes to sick pay and flexible working rights, protections against zero-hours contracts and restrictions on the use of ‘fire and rehire’ practices. New legislation will be introduced throughout 2025 and 2026. Further information can be found at UK Parliament: Employment rights bill and Employment Rights Bill: factsheets.

Step 1 – Understand the purpose and legal status of staff handbooks

Step 2 – Consider the preliminary issues

Step 3 – Prepare an introduction

Step 4 – Include policies and procedures that apply to employees

Step 5 – Include other workplace policies, procedures and rules

Explanatory notes

There is no legal obligation on employers in GB to have a staff handbook. However, it is very common for employers to issue a staff handbook to workers, in order to provide them with information about the organisation and their employment that is not included in their contracts of employment. Employers have a duty to take reasonable steps to prevent sexual harassment in the workplace, due to the Worker Protection (Amendment of Equality Act 2010) Act 2023, which came into effect on 26 October 2024. Compliance with this duty is very likely to require employers to have an anti-harassment policy, which may form part of a staff handbook.

Step 1 – Understand the purpose and legal status of staff handbooks

1.1 Understand the purpose of staff handbooks

The purpose of a staff handbook, sometimes known as an employee handbook, is to:

• provide workers with information about their employer, its operations, aims, culture and values; and
• communicate to workers the various policies, procedures and workplace rules that apply to their employment.

Staff handbooks vary widely between employers, with some handbooks running to hundreds of pages and including detailed policies on sector-specific issues. Other handbooks are very short and are focused on communicating the values of the organisation, with limited, high-level detail in relation to more process-driven matters. In some cases, employers prefer to have a short staff handbook which includes links or references to more detailed policies that sit outside the handbook.

Any employer setting out to prepare or update a staff handbook should first consider what type of handbook would suit its organisation, taking into account:

• the sector in which the organisation operates and the level of risk it is exposed to. For example, organisations operating in areas with significant health and safety requirements, or subject to strict regulatory or compliance rules, are likely to require more detailed procedures in specific areas; and
• the culture of the organisation and its general approach to employee communications.

1.2 Understand the legal status of staff handbooks

In almost all cases, it is advisable for employers to ensure that staff handbooks are non-contractual. This differs from contracts of employment, which by their nature, grant each party a potential action for breach of contract in the event the other party is in breach. One situation when a staff handbook may include content with contractual force is when an employer issues very brief individual employment contracts to each worker, with further contractual detail included within a staff handbook. In these cases, the staff handbook will usually have one section that is designated as part of the terms and conditions of employment, with a second section clearly marked as non-contractual.

1.2.1 Contracts of employment and staff handbooks

Employers are required by section 1, Employment Rights Act 1996 (ERA 1996) to provide employees and workers with a written statement of employment particulars. Section 1 sets out the information that must be provided to employees and workers in writing within specified timescales. The information required is usually provided to employees in a contract of employment, which will often also include additional provisions not required by section 1, but which the employer wishes to have contractual effect (eg, post-termination restrictions).

Any additional information which employers wish to communicate to employees, but for which they do not want to be contractually liable, is usually provided in non-contractual policies, procedures and rules. These policies are often grouped together into one staff handbook.

Further information about contracts of employment can be found at Checklist: Identifying, reviewing and updating the terms of an employment contract.

A non-contractual staff handbook therefore has less legal impact than a contract of employment. If an employer breaches a provision of its staff handbook (eg, by failing to follow a particular step in its own disciplinary procedure), this will not amount to a breach of an express contractual term. Likewise, if an employee fails to comply with a provision in a staff handbook, such as failing to follow an absence reporting procedure, this may provide relevant evidence for the purposes of disciplinary action by the employer, but it will not amount to a breach of an express contractual term on the part of the employee.

Step 2 – Consider the preliminary issues

Before commencing the drafting of a staff handbook, there are a number of important preliminary issues for employers to consider.

2.1 Consider using a template staff handbook

Many law firms, human resources (HR) providers and legal and HR websites are able to provide template staff handbooks for a fee. A template staff handbook can be a useful starting point; however, employers should ensure that any template is adapted to suit the organisation. Failing to properly tailor the staff handbook to the organisation can result in a handbook which is not fit for purpose, which the employer and its staff do not fully understand and therefore are less likely to follow. Employers should be open to adding and removing sections of a template handbook, rewriting certain parts and amending the terminology used throughout the template handbook, in order to produce a staff handbook that properly represents the employer and the messages it intends to convey to its workers.

There are limited examples of free template staff handbooks available online. However, the Advisory, Conciliation and Arbitration Service (Acas) provides some example policies on its website which could be incorporated into a staff handbook.

2.2 Consider which categories of staff should be covered by the handbook

Ensuring that the correct staff are covered by the handbook is a crucial step that employers should not overlook. In GB, there are three types of employment status (referred to collectively as ‘staff’ in this checklist):

• employee – benefits from all statutory employment rights and protections including unfair dismissal and redundancy rights;
• worker – benefits from certain statutory employment rights and protections but not to the same extent as employees (all employees are also workers);
• independent contractor – self-employed individual with very few employment rights or protections.

For further information about the different categories of employment status in GB, see Checklist: Determining the difference between an employee, a worker and an independent contractor.

Some employers will have a workforce made up entirely of employees and therefore will not have to consider different categories of staff when preparing a staff handbook. However, many employers have both employees and other workers who do not have employee status, such as casual, bank or seasonal staff. Employers may also engage contractors or consultants who have the status of independent contractors.

Employers with different categories of staff in their workforce usually intend for some of the information contained in the staff handbook to apply only to employees, with other information also applying to the wider category of workers (which includes employees). There are no rules in relation to how staff handbooks must be presented; however, employers should ensure that it is clear whether any particular part of a staff handbook applies to all workers or only to employees. A common approach taken by employers is to split the handbook into two parts, with:

• one section that applies to all workers – this usually includes the introduction, information about the organisation, a code of conduct or set of values and any workplace rules or policies that apply to workers such as health and safety rules;
• another section applying solely to employees – this should include provisions such as disciplinary and grievance policies and procedures.

Alternatively, employers might prepare two separate handbooks – one for its employees and another for its workers. Employers should consider carefully the extent to which each part of a staff handbook might apply to all workers or only to employees. For example, while all workers are entitled to paid annual leave, the provisions for booking and taking leave might differ between workers and employees, requiring two separate policies.

There are certain workplace policies which often apply to independent contractors as well as to workers (eg, a code of conduct or set of values, health and safety rules and use of IT equipment). As the majority of a staff handbook does not apply to independent contractors, organisations typically extract a copy of the relevant policies and provide them to contractors along with a separate contractor agreement. This is more preferable rather than dealing with the complexity of breaking down the staff handbook further into three separate parts.

2.3 Consider whether the employer requires more than one staff handbook

Some employers, particularly large and multinational employers, will have more than one staff handbook in operation. Typical reasons for this are because they have:

• separate staff handbooks for employees and workers (as noted at step 2.3 above);
• separate staff handbooks for different jurisdictions – while this checklist is focused on the best practice requirements of a staff handbook in GB, employers with staff in other jurisdictions will likely require a similar document for each jurisdiction;
• separate staff handbooks for different parts of the business – for example, a manufacturing organisation may have one handbook for site-based staff, another for central services staff such as IT and HR and a third for mobile sales staff; and
• separate staff handbooks for different work sites – this is particularly common in workplaces where the employer recognises a trade union in certain parts of the business, and in organisations where different sites or sections of the business have been acquired by the employer over time. In these cases, it is common for employers to have different policies and procedures in place across different sites, requiring separate staff handbooks.

When an employer does have multiple handbooks, other than in the case of separate jurisdictions where the handbook is likely to be entirely different, it is common for there to be some replication between handbooks.

2.4 Consider the options for presentation of staff handbooks

There are no legal requirements relating to the presentation of a staff handbook. However, if staff are to follow the requirements in a staff handbook, the employer will need to ensure that they can easily access it. Employers with a workforce that is mostly computer based often do not provide hard copies of a staff handbook, but instead make the handbook available via an intranet page. This can enable employers to present the information clearly, using drop-down menus, and to identify which section applies to which category of staff. Contractors can also be provided with links to the relevant extracts of the staff handbook that apply to them. In some cases, the employer will not use the title ‘staff handbook’ at all when presenting the information in this way, but will signpost staff to relevant workplace policies and procedures.

In workplaces where staff do not typically spend any time on a computer, employers usually maintain hard copies of a staff handbook onsite for them to access.

While employers should avoid asking staff to sign a copy of a staff handbook in order to avoid the risk of the handbook having contractual effect, it is good practice for employers to ask those covered to sign a short declaration confirming that they have read and understood the staff handbook. This should take place on commencement of employment and when any significant updates to the staff handbook are made. This can be helpful for employers, for example, when taking disciplinary action against an employee based on breach of a policy within the staff handbook – if the employee has signed a declaration, it is more difficult for them to argue that they were not aware of the policy requirements.

Step 3 – Prepare an introduction

Even if a template staff handbook is being used, the initial section of a staff handbook should always be prepared specifically for the employer. This is the employer’s chance to communicate to its workforce its aims, ethos and values.

3.1 Include a welcome message

Staff handbooks often include a welcome message or an introduction from a founder, managing director or CEO of the organisation. The purpose of the introduction is to welcome workers to the business and provide some brief information about the business and its aims. Introductions sometimes also include references to the key values of the employer, such as a commitment to being an inclusive workforce or to protecting the environment.

3.2 Provide information about the organisation

Useful information in this section might include:

• information about the purpose and aims of the organisation;
• a breakdown of the organisation’s locations;
• an organisation chart or site map;
• information about the organisation’s history; and
• any key sector or industry-specific information, such as regulators or trade associations.

3.3 Include the organisation’s code of conduct or values

Many organisations have a code of conduct or set of values that all staff are required to adhere to. It is common for organisations to also require other stakeholders, such as contractors and suppliers, to adhere to such code. If an organisation has a code of conduct or values, this should be included towards the start of the staff handbook.

3.4 Include important information about the staff handbook

The introductory section of a staff handbook should include clear wording to cover:

• which staff the staff handbook applies to or which sections apply to which categories of staff;
• who is responsible for maintaining the staff handbook (this will usually be the HR department or a particular role or section within the HR department);
• a statement that the staff handbook does not have contractual effect. It is good practice to repeat this statement within key policies such as disciplinary and performance management; and
• a statement that the staff handbook can be amended at any time at the discretion of the employer. This statement should also be repeated where relevant (eg, when setting out non-contractual benefits).

Step 4 – Include policies and procedures that apply to employees

Certain workplace policies and procedures should only apply to employees. This includes policies that:

• ensure that the employer takes appropriate steps before dismissing an employee, in order to protect itself from unfair dismissal and related claims; and
• provide information about statutory employment rights that are only available to employees.

According to section 98, ERA 1996, it is not possible for employers in GB to lawfully dismiss an employee without:

• establishing a fair reason – this must be one of the five potentially fair reasons, as set out in section 98(1) and (2), ERA 1996; and
• following a fair procedure.

Whether or not an employer has carried out a fair dismissal procedure will depend upon a number of factors, including the size and administrative resources of the employer’s undertaking (section 98, ERA 1996). However, there are certain fundamental steps that must be followed in all cases, and these steps should be captured within the relevant workplace policies and procedures.

For further information about dismissing an employee, see How-to guide: How to carry out a fair termination of employment.

4.1 Disciplinary policy and procedure

A good disciplinary policy and procedure is crucial if an employer is to satisfy the requirement of following a fair procedure when dismissing an employee for a conduct-related reason.

When dealing with a conduct-related dismissal the employer almost always must, as a minimum, carry out an investigation, a disciplinary hearing and give the employee a right of appeal.

A disciplinary policy and procedure should comply with the Acas Code of Practice on disciplinary and grievance procedures. Acas also provides an example discipline and grievance procedures on its website.

For further information, see Checklist: Carrying out a disciplinary process.

4.2 Performance management policy and procedure

Prior to dismissing an employee for performance-related concerns, an employer should follow a performance management procedure, in order to protect itself from an unfair dismissal or related claim. A performance management procedure includes:

• formally raising any performance concerns with the employee and agreeing performance targets;
• allowing the employee time to improve their performance against the agreed targets;
• identifying any support the employer can provide to assist the employee to improve its performance; and
• allowing the employee a right of appeal against dismissal.

For further information, see Checklist: Carrying out a capability process.

4.3 Grievance policy and procedure

A grievance policy and procedure give employees an opportunity to raise a formal complaint to their employer. As a minimum, a grievance procedure should include an investigation, grievance hearing and right of appeal and should comply with the Acas Code of Practice on disciplinary and grievance procedures.

Acas also provides an example grievance policy and procedure on its website.

4.4 Family-friendly policies and procedures

Employees in GB are entitled to various types of family-related leave, pay and rights, including maternity leave, adoption leave, shared parental leave, paternity leave, parental leave, parental bereavement leave, right to request flexible working and time off to care for dependents.

A staff handbook will usually include a policy for each of the categories listed above. The legislation dealing with these rights is comprehensive and sets out detailed timescales and administrative requirements for both parties to comply with. Often, an employer’s policies are simply a summary of the legal entitlement and the procedures that both employee and employer must follow. In some cases, employers enhance the employees’ statutory rights (eg, by paying more maternity pay than statutory maternity pay) and this is usually noted in the relevant policy, with a caveat that the entitlement is discretionary and can be amended by the employer at any time.

Some employers also include additional policies that do not relate to statutory requirements, such as an IVF policy and a general bereavement policy.

Step 5 – Include other workplace policies, procedures and rules

There are a number of other important workplace policies and procedures which are almost always included in a staff handbook and often have wider application than employees. Employers should note that it is possible to have different versions of these policies for different categories of stakeholder. For example, an employer might have one whistleblowing policy applicable to members of the public and a separate whistleblowing policy applicable to employees. Another employer might opt for one whistleblowing policy which applies to employees as well as to workers, contractors, service providers and even members of the public. A policy can be included in the staff handbook for workers as well as being made available elsewhere to others (eg, on the organisation’s external facing website).

Employers also typically include rules about various workplace matters within a staff handbook.

5.1 Equality and diversity policy and anti-harassment policy

An equality and diversity policy will usually apply to all workers, plus sometimes also to independent contractors and even wider categories of stakeholders such as suppliers, in the same manner as a code of conduct or set of values.

Acas provides an equality, diversion and inclusion policy template on its website.

Employers have a duty to take reasonable steps to prevent sexual harassment in the workplace and should therefore have an anti-harassment policy. For further information, see How-to guide: How to comply with the employers’ duty to take reasonable steps to prevent sexual harassment in the workplace.

5.2 Whistleblowing policy

A whistleblowing policy should provide information about how individuals can raise any concern that they might have about the organisation, such as a concern that the organisation is engaged in unlawful or unethical conduct. A whistleblowing policy will often include multiple options for raising a concern, including a dedicated person, telephone hotline and email address.

For further information, see How to-guide: Understanding the legal protections for whistleblowers.

5.3 Anti-bribery policy and conflict of interest policy

An anti-bribery policy sets out information about how workers should handle potential bribes (eg, if a supplier offers the worker a gift in return for the award of a supply contract).

A conflict of interest policy specifies how workers should deal with a potential conflict (eg, if a worker intends to issue a supply contract to a business owned by the worker’s family member).

5.4 Information about pay and benefits

While the rate and frequency of pay and information about benefits must be included in a contract of employment, a staff handbook should set out any additional relevant information, including, in particular:

• further details about benefits and how they can be accessed by workers;
• any necessary policies relating to benefits, such as a company car policy.

5.5 IT-related policies

An IT devices or computer use policy will usually be included in a staff handbook, setting out any limits on the use of employer IT equipment, such as computers and phones, as well as issues such as use of the internet and external hard drives.

When workers are permitted to use their own devices for work, employers may include a bring your own device policy.

Employers may also include a social media policy, setting out the expectations in relation to workers who use social media, whether for work or personal purposes.

An employee monitoring policy sets out the extent to which workers are monitored at work, including during their use of the employer’s IT systems and equipment and other forms of monitoring such as CCTV.

5.6 Data protection policy

A data protection policy sets out how the organisation protects personal data and ensures compliance with the requirements of Regulation (EU) 2016/679 - General Data Protection Regulation (GDPR).

5.7 Confidentiality policy

It is common for employers to include confidentiality provisions within a contract of employment, in particular for roles that have access to confidential information. However, employers will often also include more detailed provisions about the requirements for workers to maintain confidentiality within a staff handbook.

5.8 Policies relating to working arrangements

With the increase in remote and hybrid working, it is common for employers to include policies dealing with:

• homeworking;
• remote working;
• flexi-time;
• working abroad;
• hybrid working; and
• working arrangements during adverse weather conditions or other disruption.

Acas provides an outline for a hybrid or home-working policy on its website.

5.9 Wellbeing policies

Employers often include policies aimed at improving employee wellbeing at work. These might include:

• a mental wellbeing policy – covering available support and wellbeing initiatives;
• a menopause policy – detailing the support available for employees who are going through the menopause.

5.10 Workplace rules

Employers will usually utilise a staff handbook in order to set out the key workplace rules that apply to staff. The relevant rules will depend on the nature of the employer’s business, but often include some of the categories set out below.

5.10.1 Health and safety

All workplaces will require some kind of health and safety policy, whether to cover fire drill procedures in an office or use of machinery and personal protective equipment on site.

Employers that employ safety critical roles may also have a policy dealing with drug and alcohol testing in the workplace.

Many employers also include a no-smoking policy, either within their health and safety policy or as a standalone policy.

5.10.2 Dress code

Employers may wish to have dress codes in place, either from a safety perspective or for workers in customer-facing roles. Employers should be careful to avoid discriminatory practices in dress codes (eg, by specifying different requirements for male and female workers, or unreasonably failing to accommodate the needs of a person with a disability or practising a religion).

5.11 Workplace procedures

As well as workplace rules, employers will often use staff handbooks to set out procedures which staff need to be aware of, including:

• procedures for booking time off work, both annual leave and for routine appointments such as dentist appointments;
• induction, probation and appraisal procedures;
• procedures for claiming expenses, including details of when expenses must be approved by the employer in advance; and
• information about when overtime can be worked, applicable rates and the procedure for claiming payment.

5.12 Consider any additional sector-specific provisions

Employers should consider whether any additional policies, procedures or rules are necessary due to the sector or industry in which they operate. For example, if workers are required to hold professional qualifications, or if workers are subject to safeguarding checks due to working with minors.

This checklist was produced in conjunction with Michael Salter of 42BR Barristers.

Additional resources

Related Lexology Pro content

How-to guides:

Overview of employment law
How to carry out a fair termination of employment
Overview of workplace discrimination and harassment law
How to avoid disability discrimination in the workplace
How to comply with the duty to make reasonable adjustments in the workplace
How to carry out a fair dismissal on the grounds of SOSR
Understanding the legal protections for whistleblowers
The framework for resolving employment disputes in England and Wales
How to comply with the employers’ duty to take reasonable steps to prevent sexual harassment in the workplace
How to avoid religion or belief discrimination in the workplace

Checklists:

Identifying, reviewing and updating the terms of an employment contract
Employment law considerations during a recruitment process
Determining the difference between an employee, a worker and an independent contractor
Carrying out a disciplinary process
Carrying out a capability process
Conducting a redundancy exercise
Managing multi-jurisdictional redundancies in Europe
Employment, immigration and tax considerations when dealing with cross-border working
Carrying out workplace investigations in a cross-border context
Carrying out a TUPE transfer
An employer’s guide to fire and rehire

Quick views:

Protected characteristics under the Equality Act 2010
Key players in collective labour law – UK, Germany, Italy, France and the Netherlands
Collective redundancy consultation
Understanding and navigating gender-critical beliefs in the workplace

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