Do I need a staff handbook for a small business?
A staff handbook is where most employers keep the rules and procedures that every worker must be told about. The duty is in section 3(1) of the Employment Rights Act 1996: the written statement every worker receives must include a note on disciplinary rules, disciplinary and dismissal procedures, and grievances, or refer the worker to a reasonably accessible document that sets them out. A handbook is usually that document.
What the note must cover
Section 3(1)(a) requires the note to specify any disciplinary rules that apply to the worker, or to refer to a reasonably accessible document specifying them. Section 3(1)(aa) does the same for any procedure for taking disciplinary decisions, or a decision to dismiss. Under section 3(1)(b), the note must also name, by description or otherwise, a person the worker can go to if dissatisfied with a disciplinary decision or a decision to dismiss, and a person the worker can go to with a grievance, together with how to apply. Where further steps follow, section 3(1)(c) requires them to be explained, or set out in a reasonably accessible document.
Section 3(2) takes rules, decisions and procedures relating to health or safety at work outside these requirements.
Why the handbook sits apart from the contract
The Act allows this material to be kept in a separate document. Section 3 lets the note refer the worker to a reasonably accessible document for the rules and procedures, and section 2(2) allows the written statement to refer to another reasonably accessible document for sick pay, other paid leave, pensions and training entitlement. Under section 2(4), the note required by section 3 may also be given in instalments, as long as it arrives no later than two months after the employment begins.
In practice, this keeps the contract short and stable while the handbook carries the rules and procedures that change more often.
For employers who would rather not draft it themselves, our employment pack is a contract of employment and a staff handbook, completed to your answers and checked by a solicitor of England and Wales. The price is £395, with no VAT charged, and it comes back within 24 hours of us having everything.
Order the employment packThis guide is general information about the law of England and Wales. It is not advice on your situation.