The staff handbook can represent one of the most important documents in the workplace, providing employees with key information about the terms and conditions of their employment, as well as what to expect from their employer and what is expected of them.
In this guide, we look at what the staff handbook is, including what purpose it serves and the benefits from having one in place. We also look at whether a staff handbook is required as a matter of law and what employers should include in the staff handbook as matter of best practice.
Section A: What is a staff handbook?
A staff handbook, also commonly known as an employee or company handbook, is a set of documents designed to provide staff with information about the employer’s organisation, the employee’s working conditions, as well as employee rights and responsibilities at work.
The contract of employment sets out the core terms and conditions governing the working relationship, while the staff handbook normally sets out non-contractual policies on annual leave, family-related leave, sick pay, pensions and similar matters. Labelling these policies non-contractual lets the employer amend them quickly when legislation or business needs change.
The staff handbook will also usually provide employees with guidance on various other employment-related matters, including the employer’s disciplinary and grievance procedures, matters relating to health and safety at work, equality and diversity within the workplace, as well as other workplace policies. Again, some of these matters may simply be informative, while others may be treated as incorporated into the contracts of employment.
Section B: Is a staff handbook required by law?
Having a staff handbook is not a strict statutory requirement for employers, even though it can represent an essential component of effectively managing the workforce. However, the employer must still provide certain written workplace policies and procedures. For example, by law, if you employ five or more people you must have a written health-and-safety policy (s 2(3) HSWA 1974). Equally, employers have to put their disciplinary and grievance rules in writing and handle cases in line with the Acas Code of Practice. A tribunal can increase compensation by up to 25 % if an employer unreasonably fails to follow that Code.
It is good practice for employers to ensure that all workplace policies and procedures are easily accessible. As such, most reputable employers, both large and small, will have a staff handbook in place to provide the information needed throughout the employment lifecycle.
For medium or large-sized organisations, a copy of the staff handbook can usually be found in digital format on the staff intranet site, comprising a number of separately headed provisions dealing with each workplace matter. However, for smaller employers, a cost effective alternative would be to produce a limited number of hard copy manuals that employees know exactly where to find in the workplace and can refer to if needed.
Section C: Staff handbook v written statement of particulars & employment contract
Employers often assume that a single document can cover every aspect of the employment relationship, but three distinct documents play quite different roles: the staff handbook, the written statement of particulars and the employment contract.
1. Written statement of particulars
Under s.1 of the Employment Rights Act 1996, almost all workers are entitled to a “written statement of employment particulars” on or before day one. Its purpose is purely statutory: to ensure each worker has, in a single place, the key facts about the job – for example pay, hours, place of work, holiday entitlement, notice periods and any collective agreements. While the statement is not technically “the contract” in its own right, its terms are evidence of the contract and are enforceable. Failure to issue it, or issuing an incomplete statement, allows a tribunal to award two or four weeks’ pay if any other successful claim is brought. The statement must be kept up to date when particulars change, but only those specific particulars require formal written variation.
2. Employment contract
The contract of employment is the legally binding agreement – partly written, partly implied – that establishes the mutual obligations between employer and employee. It may be set out in a formal document signed by both parties or pieced together from offer letters and the statutory statement. Some clauses (e.g. confidentiality, post-termination restrictions or garden-leave powers) go beyond the statutory particulars and are included to protect the business. Changing contractual terms demands consultation and employee agreement or, in unionised settings, collective bargaining. Unilateral changes risk claims for breach of contract or, if fundamental, constructive unfair dismissal. Accordingly, the contract should cover only those matters that genuinely need contractual force, leaving procedural detail to other documents.
3. Staff handbook
The staff handbook is a living repository of policies, procedures and guidance designed to guide both managers and employees through day-to-day situations. Unlike the other two documents, there is no legal duty to issue a handbook, yet most employers adopt one because it offers four major benefits:
- Induction and culture – New starters receive a concise, authoritative orientation to the organisation’s values and expectations.
- Consistency – Managers follow uniform procedures, reducing inadvertent discrimination and improving employee experience.
- Legal defence – Tribunals routinely ask for core policies (discipline, grievance, harassment, H&S) and since 26 October 2024, employers must also show they took ‘reasonable steps’ to prevent sexual harassment under the Worker Protection Act 2023.
- Flexibility – Declaring the handbook “non-contractual” the employer can update it unilaterally to reflect legislative changes e.g. the day-one flexible-working right and revised Acas Code that took effect on 6 April 2024
A common mistake is to reproduce whole policies in the contract or the written statement, inadvertently locking them in stone. Best practice is to put only the headline contractual commitments in the contract/statement and reference the handbook for operational detail. This keeps the contractual core stable while allowing the handbook to evolve quickly – typically following an annual review or whenever the law changes.
Employers should also maintain a clear version-control process: publish handbook updates on the intranet, notify all staff, and ask them to sign or click an acknowledgement. This audit trail not only evidences communication but reinforces the handbook’s importance.
| Document | Legal Requirement? | Typical Content | Contractual Status | How to Update | Main Purpose |
|---|---|---|---|---|---|
| Written Statement of Particulars | Yes – must be given by day one to all employees and workers, including casual and zero-hours staff. | Core particulars: job title, pay, hours, place of work, holiday, notice, benefits, probation, etc. | Evidence of contractual terms; enforceable. | Re-issue or confirm in writing when any specified particular changes. | Statutory compliance and certainty of key terms. |
| Employment Contract | No specific format required, but a contract exists once work begins. | Mutual obligations, pay clauses, restrictive covenants, confidentiality, IP rights, notice, dismissal, bonuses. | Fully contractual – binding on both parties. | Requires employee consent (or collective agreement); risk of breach claims if changed unilaterally. | Defines enforceable rights and duties. |
| Staff Handbook | Not mandatory, but strongly recommended. | Policies and procedures: disciplinary, grievance, equality, H&S, flexible working, IT, social media, etc. | Usually expressed as non-contractual (except perhaps certain policy statements). | Employer may update unilaterally; notify staff and record acknowledgements. | Operational guidance, consistency, induction and risk management. |
In summary, the statutory statement delivers compliance, the contract delivers enforceable obligations, and the handbook delivers clarity, culture and agility. Employers should treat them as complementary, and not interchangeable, documents.
Section D: Benefits of a staff handbook
The staff handbook is a practical way of collating all workplace policies and procedures in an easily accessible format, providing workers with a one-stop information point in relation to their employment. The handbook will essentially communicate on the employer’s behalf what is expected of employees, as well as what they can expect from the employer, through a clear set of guidelines on how issues will be handled within the workplace. The staff handbook can therefore represent an important part of an effectively managed workforce.
Additionally, by implementing fair and legally compliant policies and procedures within the staff handbook, this will demonstrate a commitment to staff to treat them fairly and in accordance with the law. In the event that staff have an issue, they will have a go-to manual to explain their rights and entitlements, together with ways in which any disputes will be handled by the employer. This, in turn, is also likely to reduce the potential for disharmony within the workplace and even minimise the risk of disputes arising.
As there is no legal requirement to have a staff handbook there is no risk, of itself, of not having one, although there are other adverse consequences that can arise because of this.
If a business does not have a staff handbook, or the handbook is outdated, at the very least this is likely to reflect badly on the employer and damage the employer brand.
Another key risk of not having a staff handbook in place is that this will leave employers vulnerable in the context of any tribunal claim made against them, struggling to defend any decision-making process or workplace practices. In the absence of certain workplace policies, this will almost certainly be viewed unfavourably by an employment tribunal. This could even result in adverse inferences being drawn, for example, the absence of an equality and diversity policy could help to support findings of unlawful discrimination.
It is therefore important that employers have in place various up-to-date workplace policies and procedures, regularly reviewing these documents to ensure that they meet the minimum statutory requirements under the latest legislation and remain fit for purpose at all times. In this way, employer decision-making and the various different issues that can arise during the course of the employment lifecycle are less likely to be open to challenge.
It is also important that the staff handbook containing these policies and procedures is made readily accessible to all members of staff, together with all the other information and guidance needed when working for an organisation. As a matter of good practice, all new-starters should be asked to sign a declaration confirming that they have read and understood the contents of the handbook as part of their induction process.
Finally, tribunals can uplift compensation by up to 25 % if an employer unreasonably fails to follow any relevant Acas Code (discipline, grievance or flexible working).
Section E: What should a staff handbook include?
There is no set format for staff handbooks, where there are various staff handbook templates that can be downloaded online when deciding on format and design. These can be specifically tailored to the size and resources of a business. However, no matter how simple or comprehensive, the staff handbook should always be set out in a clear and logical format, including a contents page for ease of reference, and making use of various appendices to attach any lengthy and detailed documents to the back of the handbook.
For those employers providing a staff handbook for the first time, it may be best to start with general information about the organisation and a few key workplace policies, adding to this in time. For employers with staff handbooks already in place, they may want to review and supplement their existing handbook with additional policies not already included, although seeking expert advice from an employment law specialist is strongly advised. By having an expert review or re-draft the provisions of a handbook, employers can feel confident that its contents are in accordance with the law as it stands, whilst also meeting the economical and operational needs of both their business and the workforce.
1. Introduction
The staff handbook should start with a welcoming introduction to the employer’s organisation, followed by an outline of its ethos, culture and values. The handbook should then set out each workplace policy in turn, where an outline of some of the key workplace policies and procedures that can typically be found in staff handbooks are set out below.
This list is not exhaustive but, as a matter of best practice, should be treated as a minimum.
2. Induction process
The induction process is for new-starters and should contain practical information and guidance about starting a new job role, including:
- information about right to work checks
- information about any criminal record checks
- an outline of any probationary period and how this works
- information about any trade union membership
- any matters relating to training, development and promotion
- practical information about the working environment and site facilities.
The new-starter should also familiarise themselves with any separate polices or information around financial entitlements. The contract of employment will set out all core contractual matters, including an individual’s salary or pay, although additional matters relating to pay and benefits will often be set out in the staff handbook. These can include overtime arrangements and time off in lieu, business travel and work-related expenses, any company car and other contractual benefits, as well as any pension entitlement and opting out.
3. Employee conduct at work
All new-starters must be made aware of the standards expected of them, where they must be asked to review any code of conduct policy as part of their induction process, including:
- any dress code or appearance at work
- attendance at work and unauthorised absences
- standards of performance at work
- performance reviews and appraisal procedures
- smoking or vaping on work premises
- consumption of alcohol and substance misuse
- use of company premises and company property
- computer, email, internet and telephone use
- use of mobile phones in the workplace
- use of social media during and outside working hours
- confidentiality and data protection matters
- procedures for reporting any conflicts of interest
- receipt of gifts, and bribery or other corrupt behaviour
- reporting changes in personal contact information
- reporting wrongdoing at work (whistleblowing).
The employer may want to include guidance around requests for flexible working as part of the induction process, although this will often be structured as a standalone policy. Induction materials should explain that employees can request flexible working from day one, may make up to two statutory requests in any 12-month period and must receive a decision within eight weeks.
4. Equality & diversity policy
This should explain the different types of discrimination (including direct and indirect discrimination, as well as harassment and victimisation) setting out the duty on employers not to unlawfully discriminate by reason of any one of the protected characteristics as set out under the Equality Act 2010, together with practical examples. The protected characteristics include age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.
Since 26 October 2024 every employer has a positive duty to take reasonable steps to prevent sexual harassment (Worker Protection Act 2023). Your policy should spell out the steps you will take and link to training and reporting routes.
This policy should include a statement that unlawful discrimination will not be tolerated, and make it clear that the employer is committed to valuing equality and diversity in the workplace, and to creating a fair and inclusive working environment for everyone.
When it comes to discrimination, the employer may want to create a separate policy around disability discrimination, including the duty to make reasonable adjustments in the workplace to remove any disadvantage suffered by disabled job applicants and workers.
5. Health & safety at work
Every business must have a written policy for managing health and safety at work, where employers are under a duty, so far as is reasonably practicable, to maintain the health, safety and welfare of employees at work, as well as the health and safety of anyone else visiting the employer’s premises or otherwise affected by the activities of the business.
As an absolute minimum, the health and safety policy should include information on:
- first aid and designated first aiders at work
- emergency exits and evacuation procedures
- fire safety on the premises
- personal safety at work and working safely on site
- accident and incident reporting
- any specific risk assessments in place, for example, in relation to the use of machinery and/or personal protective equipment.
The employer may also want to put in place a standalone policy relating to stress at work.
6. Sickness policy
The employment contract will normally outline the basis upon which an employee will be entitled to sick pay when taking time off work through illness or injury. However, these provisions can be supplemented within the staff handbook by providing a clear framework for reporting, managing and recording sickness-related absences from work, including:
- the notification procedures for reporting sickness absence
- self-certification and the provision of sick notes
- the right to statutory or occupational sick pay
- keeping in touch during sick leave
- long-term sick leave and capability procedures.
7. Other types of leave
The staff handbook should include detailed provision relating to other types of leave, in addition to sick leave, where typical leave arrangements include:
- Annual leave entitlement and holiday pay
- Maternity, paternity and adoption leave and pay
- Shared and unpaid parental leave
- Time off for family emergencies, including compassionate leave
- Carer’s leave
- Neonatal Care leave & pay
8. Disciplinary and grievance procedures
Employers must set out their disciplinary and grievance procedures in writing. These procedures must also meet the minimum requirements of the ACAS Code of Practice.
The employer may choose to have a separate policy relating to both disciplinary and grievance matters, where any policy on disciplinary matters in the workplace should outline what misconduct and poor performance issues might lead to disciplinary action and the potential sanctions that might be imposed, including dismissal. However, the employer may also choose to have a separate capability and performance policy in place.
In the context of grievances, the employer should again outline the different types of complaints an employee may make, including the procedure for lodging a formal grievance, and the informal and formal ways in which workplace disputes may be dealt with.
9. Termination of employment
Last, but not least, the employer should provide guidance on matters around termination.
There are a number of ways in which an individual’s employment can come to an end, including through resignation, dismissal, redundancy or retirement. There are also a number of different issues to consider when an employee leaves an organisation, including:
- statutory or contractual notice periods
- any requirement to work notice and pay in lieu provisions
- return of any company property on termination
- any other conditions on leaving work, including confidentiality and restraint of trade clauses as set out within an individual’s employment contract.
Section F: Need assistance?
The staff handbook is central to an organisation’s induction and day-to-day employee experience, giving new joiners an easily-accessible and authoritative guide to culture, expectations and practical procedures. It should also help managers apply rules consistently and act as proof for tribunals that the organisation is taking “reasonable steps” to manage legal risk.
For expert advice on developing or implementing a staff handbook for your organisation, contact us.
Section G: Staff handbook FAQs
Do we have to issue a staff handbook by law?
UK legislation does not impose a duty to supply a handbook, but you must still tell employees about certain rules and procedures. A handbook is the most efficient way to do that and to demonstrate compliance if a dispute arises.
How is a staff handbook different from the written statement or contract of employment?
The written statement (often annexed to the contract) contains the core statutory particulars of the job and is legally binding. A handbook brings together wider policies and guidance and is usually expressed as non-contractual, giving you flexibility to update it without having to renegotiate terms.
Should we make the handbook contractual?
Most employers keep the handbook non-contractual so they can amend policies quickly when the law changes. If you declare it contractual, every revision requires employee agreement and could trigger claims for breach of contract if you fail to follow it exactly.
Which policies are legally mandatory to include?
Certain procedures must be in writing and easily accessible: (1) disciplinary and grievance rules (Acas Code); (2) a written H&S policy if you have ≥ 5 staff; (3) holiday entitlement and pay (including the 2024 irregular-hours/part-year reforms); (4) a process for Carer’s Leave requests (day-one right to 1 week unpaid leave, in force 6 Apr 2024); and (5) a redundancy-and-redeployment policy that reflects the extended 18-month protection for employees returning from pregnancy, maternity, adoption or shared-parental leave (from 6 Apr 2024).
How often should we review and update the handbook?
Best practice is at least annually or immediately after any relevant legal change.
Do we need a separate sexual harassment policy under the Worker Protection Act 2023?
Since 26 October 2024, employers are under a proactive duty to take “reasonable steps” to prevent sexual harassment. A clear, stand-alone policy outlining zero tolerance, reporting routes, investigation process and management training is a practical way to evidence compliance.
Can the handbook be issued in digital form only?
Yes; there is no requirement to supply a paper copy. Make sure every employee can access it easily (e.g. intranet, HR portal) and keep an audit trail that it was issued and updated. Offering a printed copy on request is good practice for accessibility.
How do we prove employees have read it?
Ask staff to sign a short acknowledgement (wet-ink or electronic) confirming they have read and understood the handbook and will keep up-to-date with future revisions. Retain the receipt on the personnel file. Digital HR systems that log the first login or completion of a short quiz also provide evidence.
Do we have to consult employees or trade unions before changes?
For non-contractual handbooks you do not have a legal duty to consult, but engaging with employee representatives (and recognised unions where applicable) helps with buy-in and reduces the risk of indirect contractual arguments. Where a change affects contractual terms or collective agreements, formal consultation is required.
Can we rely on the handbook in disciplinary or tribunal proceedings?
Tribunals routinely ask for the relevant policies. A well-drafted, consistently applied handbook can show the organisation acted reasonably and followed fair procedures, which can reduce awards or even defeat claims.
What happens if we fail to follow our own handbook?
If the handbook is contractual, the employee could claim breach of contract. Even if it is non-contractual, inconsistent application may amount to unfair or discriminatory treatment. Regular training for managers on the correct procedure is therefore essential.
Section H: Glossary
| Term | Definition |
|---|---|
| Staff Handbook | A compilation of an organisation’s policies, rules and guidance issued to employees, usually marked as non-contractual for ease of amendment. |
| Written Statement of Employment Particulars | The minimum details (e.g. pay, hours, job title) that employers must give workers in writing by day one under section 1 of the Employment Rights Act 1996. |
| Contract of Employment | The legally binding agreement of mutual obligations between employer and employee, made up of express and implied terms. |
| Acas Code of Practice | Statutory guidance on fair disciplinary and grievance procedures; tribunals may adjust compensation by up to 25 % if either party unreasonably fails to follow it. |
| Disciplinary Procedure | The process an employer uses to address alleged misconduct or poor performance, typically involving investigation, hearing, decision and appeal stages. |
| Grievance Procedure | The formal route by which an employee can raise workplace concerns or complaints for investigation and resolution. |
| Non-contractual Policy | A policy expressly stated not to form part of the contract, allowing the employer to change it unilaterally after informing staff. |
| Flexible Working | The statutory right to request changes to hours, times or location of work; since 6 April 2024 it applies from day one with two requests allowed every 12 months and an eight-week decision period. |
| Carer’s Leave | A right (from 6 April 2024) to take up to one week of unpaid leave each year to care for a dependant with a long-term care need. |
| Health & Safety Policy | A written statement of an employer’s health-and-safety arrangements, required where five or more employees are engaged. |
| Holiday Entitlement | The statutory minimum paid annual leave of 5.6 weeks under the Working Time Regulations 1998, including pro-rata calculations for irregular-hours and part-year workers. |
| Part-year Worker | An employee who works only part of the year under a permanent contract (e.g. term-time staff); special holiday-pay rules apply from January 2024. |
| Irregular-hours Worker | A worker whose paid hours vary in each pay period; holiday accrues based on hours actually worked. |
| Positive Duty to Prevent Sexual Harassment | A duty under the Worker Protection Act 2023 (effective 26 October 2024) requiring employers to take reasonable steps to stop sexual harassment. |
| Zero Tolerance | A policy stance that certain misconduct (e.g. harassment) will not be tolerated and will lead to prompt disciplinary action. |
| Reasonable Steps | Measures an employer could take to prevent unlawful discrimination or harassment; demonstrating these steps can act as a legal defence. |
| Acknowledgement (Receipt) | A signed or electronic confirmation that an employee has received, read and understood the handbook or an updated policy. |
| Collective Agreement | A written agreement on employment terms negotiated between an employer (or employers’ association) and a recognised trade union. |
| Consultation | The process of informing and seeking views from employees or their representatives on proposed changes, required in certain legal scenarios. |
| Employment Tribunal | An independent judicial body that decides disputes between employers and employees over employment rights. |
| Breach of Contract | Failure by either party to honour the terms of the employment contract, giving the other party a right to claim damages. |
| Unfair Dismissal | The statutory right (generally after two years’ service) not to be dismissed without a fair reason and fair procedure under the Employment Rights Act 1996. |
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
