Employee Handbook: What to Include
An employee handbook turns the rules in your head into rules your team can read, follow and rely on. This checklist is written for UK employers, with notes for US and European readers, and covers what belongs in the contract, what belongs in the handbook and which policies to write first.
Key takeaways
- In the UK, a written statement of employment particulars is a day-one legal right. The handbook sits alongside it and holds your policies.
- Disciplinary and grievance procedures should follow the Acas Code of Practice, because tribunals take it into account.
- Once you have 5 or more employees, you need a written health and safety policy.
- The Employment Rights Act 2025 is changing several rules in stages, so plan to review your handbook at least once a year.
- Keep the language plain, date every version and record when each employee received it.
Most small businesses start without a handbook. Rules live in the owner's head, and that works while the team fits around one table. Then a second or third person joins, someone asks how holiday is booked, someone is off sick for a week, and a disagreement turns into a formal complaint. Without written policies you end up making decisions on the spot, and inconsistent decisions are exactly what causes disputes.
A handbook does not need to be long or written by a lawyer. It needs to be accurate, clear and applied the same way to everyone. This checklist walks through what to include, section by section, and flags the items the law actually requires. It is general information, not legal advice. Employment law changes often, so check GOV.UK, Acas or a qualified employment adviser before you finalize your own version.
Contract, written statement or handbook: what goes where
Before you write a single policy, separate two kinds of document. Mixing them up is the most common handbook problem in small firms.
The written statement of employment particulars
In the UK, every employee and worker has the right to a written statement of the main terms of employment from their first day. This is the contract basics: who the employer is, job title, start date, pay and how often it is paid, hours, holiday entitlement, place of work, notice periods, probation and similar core terms. Many employers combine this statement with a formal contract of employment.
The handbook
The handbook holds your policies and procedures: how things work day to day, what you expect and what happens when something goes wrong. Most handbooks state clearly that the policies are not contractual, which lets you update them as the business grows without renegotiating every contract. You still need to consult staff and give fair notice of significant changes, and some items, such as pay or holiday entitlement, belong in the contract rather than the handbook.
Common mistake
Putting everything in one document and calling it the contract. If your sickness or IT policy is contractual, every small update becomes a contract change that needs agreement. Keep the core terms in the written statement and the flexible rules in the handbook, and say which is which.
The core policies every UK handbook should include
The list below covers the policies a small UK employer typically needs. Some are legal requirements; others are strongly advisable because they protect you when a problem arises.
| Policy | Why it matters | Required or advisable |
|---|---|---|
| Disciplinary and grievance | Sets a fair, consistent process; should follow the Acas Code of Practice | Required in outline (must be referenced in the written statement) |
| Health and safety | Explains responsibilities and arrangements for safe working | Written policy required with 5 or more employees |
| Sickness absence | How to report absence, self-certification, fit notes, sick pay | Strongly advisable |
| Holiday | How leave is booked, approved and carried over | Strongly advisable |
| Equal opportunities | Commitment to fair treatment and how complaints are handled | Strongly advisable |
| Anti-harassment | Supports your duty to prevent sexual harassment | Strongly advisable, increasingly expected |
| Data protection | How staff handle personal data under UK GDPR | Strongly advisable |
| IT, email and social media | Acceptable use, security, monitoring, personal posts | Advisable |
| Whistleblowing | How to raise concerns about wrongdoing safely | Advisable |
| Flexible working | How to make a request; asking is a day-one right | Advisable |
Disciplinary and grievance procedures
These two procedures do the heaviest lifting. Your disciplinary procedure should explain how concerns about conduct or performance are investigated, how the employee is told about the issue, the right to be accompanied at a meeting, the possible outcomes and how to appeal. The grievance procedure explains how an employee raises a complaint and how you respond. The Acas Code of Practice sets out the steps tribunals expect to see. Following it is not optional in practice: if a case reaches a tribunal and you ignored the Code without good reason, compensation can be adjusted against you.
Sickness and holiday
Your sickness policy should tell staff who to call, by what time and how often to keep in touch. From 6 April 2026, Statutory Sick Pay is payable from the first day of sickness and the lower earnings limit no longer applies, so make sure an older policy does not still mention waiting days. Employees can self-certify for the first 7 days; after that you can ask for a fit note. Your holiday policy should cover how to request leave, notice periods, busy periods when leave may be refused, bank holidays and what happens to untaken leave. Most workers are entitled to 5.6 weeks of paid holiday a year.
Equal opportunities and anti-harassment
From October 2026, employers face a stronger duty to take all reasonable steps to prevent sexual harassment, including harassment by third parties such as customers or clients. A written anti-harassment policy, explained to staff and backed by a clear reporting route, is one of the first things to show that you took those steps. Treat it as a working document, not a page nobody reads.
Pro tip
For every policy, name a real person or role to contact. "Speak to your line manager or, if the issue involves your manager, contact the operations director" is far more useful than "raise it with management".
Practical sections that save you time
Beyond the legal essentials, a handbook is the place for the everyday information new starters always ask about. Writing it down once saves you answering the same questions with every hire.
- Welcome and how we work: a short introduction to the business, its values and what customers expect.
- Working hours and breaks: core hours, how time is recorded, rest breaks and how overtime is approved.
- Pay and expenses: payday, how payslips are delivered, how to claim expenses and what receipts you need.
- Remote and hybrid work: who can work from home, equipment, security expectations and how to stay reachable.
- Dress, conduct and customer contact: only what genuinely matters for your business.
- Family leave: maternity, paternity, shared parental and unpaid parental leave, with a pointer to GOV.UK for current entitlements. Paternity leave and unpaid parental leave became day-one rights from 6 April 2026.
- Leaving the business: how to resign, notice, returning equipment and final pay.
Example
Imagine a seven-person design studio, Northgate Creative, with no handbook. A designer posts client work on social media before launch, and the owner has nothing in writing that says this is not allowed. The conversation becomes awkward and personal. After writing a two-page IT and social media policy that covers confidential client work, Northgate has a clear reference point: the next time it happens, the manager points to the rule, follows the disciplinary procedure and the issue stays professional.
How to write and roll out your handbook
You can build a solid first handbook in a few working days if you take it step by step.
- List what already happens. Write down how holiday, sickness, expenses and complaints are handled today, even informally. Your handbook should describe a process you can actually run.
- Start from reliable templates. Acas publishes free guidance and templates on many of these policies. Adapt them to your business rather than copying them word for word.
- Check the legal minimums. Confirm your policies match current rules for sick pay, holiday, family leave and flexible working on GOV.UK.
- Write in plain English. Short sentences, clear headings and examples. If an employee needs a lawyer to understand it, rewrite it.
- Get a review. Ask an employment adviser or HR consultant to check the disciplinary, grievance and harassment sections in particular.
- Share it and record receipt. Give every employee a copy, walk new starters through it and keep a signed or electronic acknowledgment.
- Set a review date. Put an annual review in the calendar and update sooner when the law changes.
What to update for 2026 and 2027
The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being phased in. Several changes affect handbook content directly.
- From 6 April 2026: sick pay from day one and no lower earnings limit; paternity leave and unpaid parental leave as day-one rights. Update your sickness and family leave sections.
- From October 2026: the stronger duty to prevent sexual harassment, including by third parties, plus duties around informing workers of their right to join a trade union. Review your anti-harassment policy and consider adding a short trade union section.
- From 1 January 2027 (scheduled): the qualifying period for unfair dismissal is planned to drop from two years to six months. Make sure your probation and disciplinary procedures are fair and well documented from the start of employment.
- Later measures: other changes, such as rules on zero-hours contracts and fire and rehire, are planned for later dates. Check the government's roadmap on GOV.UK before each annual review.
Notes for US and European employers
The idea of a handbook travels well, but the contents do not. In the US, handbooks commonly include at-will employment statements, equal employment opportunity policies, leave policies and state-specific sections, and federal, state and city laws vary a great deal. In the EU, many countries require specific information in employment contracts, and works councils or collective agreements may shape what you can set unilaterally. Use the structure of this checklist, then have a local adviser check the content for the places your staff work.
Employee handbook checklist
- Written statement of employment particulars ready for every new starter on day one
- Statement in the handbook that policies are non-contractual, unless stated otherwise
- Disciplinary and grievance procedures following the Acas Code of Practice
- Written health and safety policy (required with 5 or more employees)
- Sickness policy updated for day-one Statutory Sick Pay
- Holiday policy covering booking, carry-over and bank holidays
- Equal opportunities and anti-harassment policies with a clear reporting route
- Data protection, IT and social media policies
- Whistleblowing and flexible working policies
- Family leave section updated for day-one paternity and unpaid parental leave
- Version date on the cover and a record of who received it
- Annual review date in the calendar
Frequently asked questions
Is an employee handbook a legal requirement in the UK?
A handbook as such is not required, but several things that usually live in it are. You must give a written statement of employment particulars from day one, which should refer to your disciplinary and grievance rules, and you need a written health and safety policy once you have 5 or more employees. A handbook is simply the most practical place to keep them together.
How long should a small business handbook be?
As short as it can be while covering the essentials. There is no required length, and a short handbook focused on the policies you actually use is easier to keep up to date. A clear two-page policy that people read beats a ten-page one they skip.
Can I change the handbook later?
Yes, if the policies are non-contractual. Tell staff about changes, give them time to read the updated version and record that they received it. Changes to contractual terms such as pay or hours need agreement, so take advice first.
Do I need a separate handbook for part-time staff or workers?
Usually not. Most policies apply to everyone. Where entitlements differ, such as holiday for irregular-hours workers, explain the difference within the relevant section.
Related reading
The bottom line
A handbook is one of the cheapest ways to prevent people problems. Get the written statement right on day one, write the core policies in plain language, base disciplinary and grievance procedures on the Acas Code and keep the whole document under review as the Employment Rights Act 2025 rolls out.
Start with the policies you are most likely to need next month, usually sickness, holiday and grievance, and build from there. A short, accurate handbook that everyone has read is worth far more than a perfect one still sitting in draft.
