Most small businesses grow faster than their HR paperwork. That's fine until something goes wrong – a dispute, a grievance, a sickness problem or a regulator asking to see what you've got in place. A small, coherent set of HR documents will do more for you than a huge pile of generic templates you never use.
For a complete set of ready-to-use documents, see our HR contract templates.
1. Contracts / written particulars
UK law requires you to give employees a written statement of employment particulars by day one. In practice, SMEs are far better off with proper contracts that cover:
- job title and duties
- hours and working pattern
- pay, overtime and benefits
- holiday and sickness
- notice and termination
- any restrictive covenants at senior level
For casual and seasonal staff you may use different formats, but they still need clarity on pay, hours, holiday and rights.
2. A lean, non-contractual staff handbook
A handbook isn't legally mandatory, but it's the neatest place to keep your core rules and processes in one place. A lean, non-contractual handbook usually covers:
- how the handbook fits with contracts
- working hours, breaks and overtime
- holidays and sickness
- standards of behaviour and performance
- equality and dignity at work
- IT, data and monitoring
- health & safety basics
- how employment ends
Keeping it non-contractual gives you room to update it without rewriting everyone's contract.
3. Disciplinary and grievance procedures
The Acas Code of Practice is not law in itself, but tribunals look at whether you've followed it and can adjust awards if you don't. Having clear, written procedures helps you:
- set expectations on how issues will be handled
- ensure managers follow a fair process
- show a tribunal you took procedure seriously
For very small teams, the procedures can still be short and plain-English – the key is that they exist and that you use them consistently.
4. Health & safety basics
Even micro-businesses have health and safety duties, and you're expected to manage risks in a proportionate way. In practice that means:
- a short health and safety statement (if you have five or more employees)
- basic risk assessments for the main activities – including home and lone working if relevant
- clear responsibilities for reporting accidents and concerns
You don't need a 100-page manual unless you have high-risk work, but you do need something.
5. Data protection and privacy information
Under UK data protection law, you must tell staff how you use their personal data – usually via an employee privacy notice. That notice should explain:
- what data you collect
- why you collect it and your lawful basis
- who you share it with
- how long you keep it
- their rights and how to exercise them
If you monitor staff (for example via IT systems, CCTV or telematics), this should also be explained transparently.
6. Optional add-on policies
Once you have the basics, you can plug in extra policies that fit how you actually operate, for example:
- flexible and hybrid working
- lone working
- social media and acceptable use
- detailed family-friendly policies
The trick is not volume but alignment – your contracts, handbook and policies should all tell the same story.
Related reading
Related HR Templates
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