Company Policy

What is a Company policy?

A Company policy is a deliberate plan of action to guide and achieve a business outcome. Policy differs from rules or law in that: while law can prohibit behaviour (e.g. a law requiring you not to smoke), policy merely guides actions toward those who are most likely to achieve the desired outcome of keeping within the law. 

It’s also worth noting that Company policy may not always be contractually binding unless expressly stated otherwise however; policy can be seen as contractually binding via custom and practice where employees follow established working practices over time.

Why have Company policies?

A good example of the use of Company policy would be to fulfil your obligation to provide an environment which is safe for both ,staff and members of the public. In this case your Company policy would be a “health and safety policy statement” this will state how the company will comply with all statutory regulations and steps it will take to provide and maintain safe work place.  

However, don’t think you need a Company policy on every single aspect of your business. In reality, some types of policy may be irrelevant or even unhelpful, nevertheless you are legally required to have written policies on certain things, such as disciplinary and grievance procedures and health and safety.

In the areas where having a Company policy is not a legal requirement, it's often good practice to have one so that staff understands what you expect of them and what they can expect to get in return. This could include a Company policy to cover the use of mobile phones, internet access, confidentiality and security.  

Company policies also help to see that:

• Issues are dealt with fairly and consistently.
• Allow clear communication with employees.
• Set uniform standards.
• Reduce potential conflict and disciplinary action.
• Increase company productivity and morale.
• Attract and retain staff.
• Encourage a professional approach.

What Company policy do you need to employ?

It’s important to remember that you are legally required to set out your health and safety policy in writing if you have five or more employees. You are also required to have written disciplinary rules and grievance procedures.

The below is a list of common employment policies and whether or not they contain minimum legal requirements.

Type of policy	Yes	No
Appraisal e.g. : measures to improve performance or manage change		x
Benefits, expenses		x
Bullying and harassment	x
Company facilities use, e.g. internet, email and phone		x
Confidential information		x
Copyright and I. P.  protection		x
Discipline, dismissal and grievance	x
Equality and diversity	x
External working e.g. : working for another employer		x
Health and safety	x
Family e.g.: Maternity/paternity/adoption	x
Pay	x
Redundancy	x
Rewards, benefits and expenses		x
Right of search		x
Smoking, drugs and alcohol	x

What should we do with Company policy?

The main point is you must make employees aware that your company policies exist, this is particularly important during the induction of new staff. You must also make them easily accessible this is why printed employee handbooks and policy manuals are such a good solution. It’s important to note your employees written statement must either set your discipline and grievance policies or designate the document they can be found in, such as an employee handbook.