What Should Be in a Staff Handbook? A Plain-English Checklist for UK Small Businesses

Claire Fitzgerald

Sep 23

5 min read

A staff handbook isn't a legal requirement in the UK.

But some of the things that usually go in one are. And a good handbook saves you a huge amount of time, because the answers to most everyday questions are already written down.

In this post, I'll go through what I'd expect to see in a staff handbook for a small UK business, what's a legal must-have, and the mistakes I see most often.

What's the difference between a contract and a handbook?

This trips a lot of people up, so it's worth starting here.

Your employment contract (or written statement of particulars) sets out the key terms of someone's job. Pay, hours, holiday, notice and so on. Since April 2020, employees and workers must get this from day one.

Your staff handbook sets out your policies and how things work in practice. How to book holiday. What happens if you're off sick. How to raise a concern.

Most handbook policies are non-contractual. That gives you flexibility to update them without needing everyone's agreement. It's worth saying this clearly in the handbook itself.

What does the law require you to have in writing?

A few things need to be in writing, even if they don't have to sit in a handbook:

Disciplinary rules and procedures. Your written statement must include them, or point to a document where people can find them.
Grievance procedure. The same applies. People need to know who to raise a grievance with and how.
Health and safety policy. If you have five or more employees, you need a written health and safety policy.

Many businesses put these in the handbook and refer to it from the contract. That's fine, as long as people can easily find and read it.

My staff handbook checklist

This is what I'd expect to see in a handbook for a typical small business. You may not need all of it, and you might need more depending on your sector.

About the business

A short welcome and introduction to the business.
Your values or how you like to work.
Who to go to for what.

Working hours and pay

Hours, breaks and working patterns.
Overtime, if relevant.
When and how people are paid.
Expenses.

Time off

Holiday, including how to book it and any busy periods.
Sickness absence, including how to report it and statutory sick pay (which has been payable from the first day of sickness since April 2026).
Family leave: maternity, paternity, adoption, shared parental and parental leave.
Time off for dependants.
Compassionate or bereavement leave.

Conduct and performance

Standards of behaviour.
Disciplinary procedure.
Capability or performance procedure.
Grievance procedure.

Fairness and wellbeing

Equality, diversity and inclusion.
Bullying and harassment, including sexual harassment and harassment by customers or clients.
Whistleblowing.
Wellbeing, including menopause and mental health if appropriate.

Ways of working

Flexible working requests.
Hybrid or remote working, if you offer it.
Use of IT, email, social media and personal devices.
Use of AI tools. More and more people are using tools like ChatGPT or Copilot at work. A short section on what's acceptable, and what information must never go into them, is now really important.

Protecting the business

Data protection and confidentiality.
Health and safety.
Anti-bribery, if relevant.

What are the most common mistakes?

These are the ones I come across most.

It's out of date. Employment law has changed a lot, and the Employment Rights Act 2025 is bringing in more. If your handbook still mentions sick pay "waiting days", or hasn't been looked at in years, it needs a review.

It's been copied from somewhere else. Templates are a fine starting point. But I've seen handbooks mention departments that don't exist and processes nobody follows. If it doesn't reflect how your business works, people won't trust it.

It's far too long. A 90-page document written in legal language won't get read. Plain English and short sections work much better.

Nobody knows it exists. A handbook that sits in a folder nobody opens isn't doing its job. Talk about it at induction. Make it easy to find. Refer to it when questions come up.

Managers don't follow it. This is the big one. If the handbook says one thing and managers do another, you've got a problem. And it's the kind of thing that comes up if a case ever goes to tribunal.

How often should you update it?

I'd suggest a light review once a year, and a proper look whenever the law changes or your business does.

Between now and 2027, there are quite a few employment law changes coming. Tribunal time limits are extending to six months from October 2026, there's a stronger duty to prevent sexual harassment from 30 October 2026, and unfair dismissal rights after six months' service start in January 2027.

So if you haven't looked at your handbook recently, now is a good time.

How do you get people to actually read it?

This is the part most businesses skip.

Writing the handbook is only half the job. People need to know it's there and feel it's useful.

A few things that help:

Walk new starters through it. Not every page, but the parts they'll need most, like sickness reporting and booking holiday.
Make it easy to find. On your intranet, shared drive or HR system, not buried in someone's inbox.
Use plain English. If a policy needs a legal dictionary to understand it, it needs rewriting.
Tell people when it changes. A short note explaining what's changed and why goes a long way.
Brief your managers. They're the people staff will ask first.

Where I've landed

A good staff handbook isn't about covering yourself with lots of rules.

It's about making things clear. People know what's expected of them. Managers know how to handle things. And you're not answering the same questions over and over again.

It also means that when something does go wrong, you've got a fair, consistent process to follow.

If you'd like help writing or updating your staff handbook, it's something I do regularly through my HR support and HR projects work. You can also book a free 30-minute call to talk it through.

When did you last read your own staff handbook from start to finish?

Frequently asked questions

Is a staff handbook a legal requirement in the UK?

No. But some of what goes in it is. You need written disciplinary and grievance procedures, and a written health and safety policy if you have five or more employees.

Should a staff handbook be contractual?

Usually not. Most employers keep handbook policies non-contractual so they can update them more easily. Contractual terms should sit in the employment contract.

How long should a staff handbook be?

As short as it can be while still being clear. Plain English and short sections are much more likely to be read than a long legal document.

Should our staff handbook include an AI policy?

Yes, I'd recommend it. Staff are increasingly using AI tools at work, so clear guidance on what's acceptable, and what information must not be entered, is important.