Protect Your Business .Employment Contracts & Handbooks
Introduction
Whether you run a growing small business or work as a sole trader with employees, the “people” side of business can be just as important as the numbers.
If you employ people in your business, two core documents help keep everything running smoothly and protect you if problems arise: an employment contract and a staff handbook. Having these clear, legally compliant HR documents protects not only your team but also you as a business owner
It’s not enough to just “have something on file” these documents should be tailored to your business, kept up to date with UK employment law, and clearly set out expectations for both sides. In this month’s post, we’ll break down what they should include, how often to review them, and the risks of getting it wrong.
Why Every Business Needs an Employment Contract
A written contract is more than a legal requirement it’s your first line of defence if disputes happen. The law says employees must be given written terms within two months of starting, but the sooner, the better.
A well-drafted contract will:
- Outline the role, pay, and working hours.
- Define holiday entitlement and sick pay arrangements.
- Include clauses on confidentiality and data protection.
- Set notice periods for both employer and employee.
Some common mistakes that new or current employers do is use old contracts that don’t reflect current law, or relying on borrowed templates that don’t match your business structure.
The Role of a Staff Handbook
The contract sets the basics the handbook fills in the detail. This is where you outline your policies and procedures in a clear, consistent way.
It should cover:
- Sickness and absence reporting.
- Holiday booking and carry-over rules.
- Disciplinary and grievance processes.
- Health & safety guidance.
- Remote or flexible working arrangements (if relevant).
A good handbook means everyone knows the rules, and managers have a reference for fair decision-making.
When to Review Your HR Documents
You should review contracts and handbooks:
- Annually to check for legislative changes.
- When your business changes e.g., you add remote staff, change hours, or move premises.
- After significant legal updates, for example, changes to family leave, minimum wage, or holiday pay rules.
The Risk of Outdated or Generic Documents
Generic templates (especially ones found online for free) may not be written for UK law, could be missing important clauses, or may not reflect your industry. Outdated documents can cause just as many issues as having none at all from leaving gaps in legal protection to creating confusion among staff.
Making It Easier
If you’d prefer not to start from scratch, our HR Store has professionally written contracts and handbooks that meet current UK requirements.
And this month, we’ve made it even easier: you can now get both together in one HR Essentials Bundle for just £99 (saving £25). It includes:
An Employment Contract Template – covering job role, salary, working hours, and key company policies.
An Employee Handbook Template – setting out workplace rules, policies, and expectations in one clear document.
Both documents are professionally created and ready to adapt for your business, giving you the peace of mind that they’re compliant with UK law.
Final Thoughts
Strong HR foundations protect both your people and your business. If you’re unsure whether your contracts and handbooks are still fit for purpose, now’s a good time to review them.
If you’d like help getting started or a ready-made, legally compliant template our HR Store is the place to go.
