Essential HR Policies for Small Businesses in Scotland
As a small business owner, you know that your time is precious. Unexpected employee disputes, avoidable workplace accidents, and time-consuming discrimination complaints are unwelcome distractions. That’s why it’s so important to have clear and consistent HR policies in place.
HR policies will help you:
Protect your business from legal liability: By having clear policies in place, you can demonstrate that you have taken steps to prevent discrimination, harassment, and other workplace problems.
Create a fair and consistent workplace: HR policies can help you ensure that all employees are treated fairly, regardless of their race, gender, religion, or other protected characteristics.
Reduce employee turnover: Employees are more likely to stay with a company that has a transparent and fair set of HR policies
In Scotland, there are many legal requirements that small businesses must comply with when it comes to HR policies. These include the Employment Rights Act 1996, the Equality Act 2010, the Health and Safety at Work Act 1974, and the Working Time Regulations 1998, to name but a few.
In this article, we explore some HR policies that are essential for any small business operating in Scotland and the UK, explaining what they are and why you need them.
Flexible working and home working policy
This policy is a set of rules and guidelines that outline how your employees can request to work flexibly or entirely from home. With flexible working and homeworking still very common in many industries and roles, it’s one of the most critical policies to implement.
This policy helps define how you balance the needs of your business and the ideal working conditions for your employees.
In this policy
This policy covers:
Who can request flexible working: Who is eligible to request flexible working, such as employees who have been with the company for a certain amount of time or who have caring responsibilities
Types of flexible working: The different types of flexible working that are available, such as flexitime, compressed hours, and working from home
How to request flexible working: How employees can request flexible working, such as the process for submitting a request and the criteria that will be used to assess the request
Approval process: The approval process for flexible working requests, such as who will make the decision and what factors will be considered
Monitoring and review: How flexible working requests will be monitored and reviewed, such as the frequency of reviews and the process for making changes to the policy
Why you need this policy
Bring clarity: Your employees will understand if they qualify for flexible working or working from homeand know what steps to take when applying for remote working
Clear expectations: Ensure every employee knows what’s expected of them when they do work away from the office
Increased employee satisfaction: You will help your employees reduce travel costs and also balance their work and personal lives, confirming what childcare provisions they need in the year ahead, for example
Enhance your brand: Attract and retain top talent by being clear and transparent about flexible working
Purchase and download a premade, customisable and legally compliant flexible working and home working policy in the Symphony HR shop for just £55.00 + VAT.
Redundancy policy
No business owner ever wants to make redundancies, but there should be a process and policy to bring clarity for you and your employees if you ever find yourself in that unfortunate situation. This policy sets out the rules, guidelines, and expectations for your employees if you need to reduce the number of people you employ through a redundancy process.
In this policy
This policy covers:
Definition of redundancy: What redundancy means in the context of the policy
Reasons for redundancy: Reasons why you may need to make redundancies
Selection criteria: Criteria that will be used to select employees for redundancy
Notice period: The notice period that will be given to employees who are made redundant
Redundancy pay: The amount of redundancy pay employees will be entitled to
Retraining and outplacement: What support will be offered to employees who are made redundant
Why you need this policy
Fairness: A redundancy policy can ensure your redundancy process is fair and transparent, which will reduce your risk of legal challenges in the future
Compliance: A redundancy policy can help you comply with the law – there are strict legal requirements that must be followed when making redundancies
Efficiency: A redundancy policy can help to make the redundancy process more efficient, saving you time and money
Communication: A redundancy policy can help to communicate the redundancy process to employees, helping to reduce their uncertainty and anxiety
Purchase and download a premade, customisable and legally compliant redundancy policy in the Symphony HR shop for just £55.00 + VAT.
Holiday policy
Your employees need clear guidelines on requesting time off, how much they will be paid, and what happens if they are sick while on holiday. And, as a small business owner, you need to ensure that business-as-usual is not disrupted by employees taking too many (or not enough) holidays.
A holiday policy explains how your employees can take time off work for holidays.
In this policy
This policy covers:
Annual leave entitlement: The amount of annual leave that employees are entitled to
Carryover: Whether or not employees are allowed to carry over any unused annual leave into the next year
How to request leave: How employees request leave, such as the process for submitting a request and the criteria that will be used to assess the request
Approval process: The approval process for leave requests, such as who will make the decision and what factors will be considered
Notice period: The notice period that employees must give when requesting leave
Pay during leave: How employees will be paid during leave, such as whether they will be paid their full salary or a pro-rated amount
Why you need this policy
Employee satisfaction: Employees who can easily take time off work for holidays are more likely to be satisfied with their jobs, which can lead to increased productivity and reduced absenteeism
Business continuity: A holiday policy can help to ensure that the business can continue operating even when employees are on leave – this is important if you don’t always have the resources to cover absent employees in your business
Compliance: A holiday policy can help employers to comply with the law – there are strict legal requirements that must be followed when it comes to holiday leave
Keep in mind
When creating a holiday policy, there are a few things to keep in mind:
Fairness: a holiday policy should be fair and equitable to all employees, regardless of their role or seniority
Feedback: getting feedback from employees before you implement a holiday policy will help you to ensure that the policy meets the needs of your workforce
Flexibility: a holiday policy should be flexible enough to accommodate the changing needs of your business in the future
Communication: once you publish your holiday policy, ensure that all employees are aware of the policy and how to request leave
Purchase and download a premade, customisable and legally compliant working and home working policy in the Symphony HR shop for just £55.00 + VAT.
Disciplinary and dismissal policy
This policy covers your procedures relating to disciplinary issues where there is suspicion of misconduct. It’s a set of rules and guidelines that outline how you, as an employer, will handle employee misconduct and performance issues.
In this policy
This policy covers:
Definition of misconduct: What misconduct means in the context of the policy
Types of misconduct: The different types of misconduct that may lead to disciplinary action
Levels of seriousness: The different levels of seriousness of misconduct, such as minor, serious, and gross misconduct
Procedure for dealing with misconduct: The steps that will be taken when an employee is accused of misconduct
Types of disciplinary action: The different types of disciplinary action that may be taken, such as a warning, a suspension, or dismissal
Right to appeal: Informing your employees that they have the right to appeal any disciplinary decision
Why you need this policy
Fairness: A disciplinary and dismissal policy can help to ensure that employees are treated fairly and consistently, which can help to reduce the risk of legal challenges
Compliance: A disciplinary and dismissal policy can help employers to comply with the law – there are strict legal requirements that must be followed when dealing with employee misconduct
Efficiency: A disciplinary and dismissal policy can help to make the disciplinary process more efficient, saving you time and money
Communication: A disciplinary and dismissal policy can help to communicate the disciplinary process to your employees, reducing uncertainty and anxiety
Purchase and download a premade, customisable and legally compliant disciplinary and dismissal policy in the Symphony HR shop for just £55.00 + VAT.
Grievance policy
A grievance policy explains how to deal with complaints, concerns, and problems related to employment fairly and consistently. It’s a set of rules and guidelines for employees to raise concerns about their employment without fear of retaliation.
In this policy
This policy includes:
Definition of grievance: What a grievance means in the context of the policy
Who can raise a grievance: Who is eligible to raise a grievance, such as employees who have been with the company for a certain amount of time or who have been affected by a particular decision
What can be a grievance: The types of issues that can be raised as a grievance, such as unfair treatment, discrimination, or harassment
How to raise a grievance: How employees can raise a grievance, such as the process for submitting a grievance and the criteria that will be used to assess the grievance
Investigation and resolution: The investigation and resolution process for grievances, including who will investigate the grievance and how the grievance will be resolved
Right to appeal: Explaining that employees have the right to appeal any grievance decision
Why you need this policy
Employee satisfaction: Employees who feel that they can raise concerns about their employment are more likely to be satisfied with their jobs, which can lead to increased productivity and reduced absenteeism
Fairness: A grievance policy ensures that grievances are dealt with fairly and consistently, helping to reduce the risk of legal challenges.
Compliance: A grievance policy helps you comply with the law – there are strict legal requirements that must be followed when dealing with employee grievances
Communication: A grievance policy can help to communicate the grievance process to employees, reducing uncertainty and anxiety
Purchase and download a premade, customisable and legally compliant grievance policy in the Symphony HR shop for just £55.00 + VAT.
Equal Opportunities policy
An Equal Opportunities policy can help your small business to get the absolute best out of a diverse workforce and create a positive working environment for all employees. It’s a set of rules and guidance on how you, as an employer, will treat all employees fairly and equally, regardless of their race, sex, religion, disability, or other protected characteristics.
In this policy
This policy should cover:
Definition of equal opportunities: What equal opportunities means in the context of the policy
Protected characteristics: The protected characteristics that are covered by the policy, such as race, sex, religion, disability, and age
Prohibition of discrimination: Explaining that discrimination based on any protected characteristic is prohibited
Harassment: Explaining that harassment on the basis of any protected characteristic is prohibited
Remedies: The remedies available to employees who have been discriminated against or harassed.
Monitoring and review: How the equal opportunities policy will be monitored and reviewed
Why you need this policy
Fairness: An equal opportunities policy will help to ensure that all employees are treated fairly and equally, creating a more positive and productive workplace as a result
Compliance: This policy will also help you comply with the law – there are strict legal requirements in the UK that must be followed when it comes to discrimination and harassment
Attract and retain talent: An equal opportunities policy can help you attract and retain top talent – employees are more likely to want to work for an employer that is committed to fairness and equality
Reduce risk: An equal opportunities policy will help to reduce the risk of legal challenges, protecting you from liability if an employee is discriminated against or harassed
Purchase and download a premade, customisable and legally compliant equal opportunities policy in the Symphony HR shop for just £55.00 + VAT.
Maternity and Family Friendly Policy
A maternity and family friendly policy covers procedures for all types of family-related leave and pay, including details of employees’ statutory rights. The policy is effectively a set of rules and guidelines that outline how you, as an employer, will support employees who are pregnant, giving birth, or becoming parents.
In this policy
This policy covers:
Eligibility: Who is eligible for maternity and paternity leave, such as employees who have been with the company for a certain amount of time or who meet specific criteria
Leave entitlement: How much leave is available to employees, such as the number of weeks or months of leave that employees are entitled to
Pay during leave: How employees will be paid during their maternity or paternity leave, such as whether they will be paid their full salary or a reduced amount
Return to work: The process for returning to work after maternity or paternity leave, including the need to give notice or the need to meet specific criteria
Flexible working: Options for flexible working after maternity or paternity leave, such as working from home or part-time hours
Why you need this policy
Employee satisfaction: Employees who feel supported during their maternity or paternity leave are more likely to be satisfied with their jobs, which can lead to increased productivity and reduced absenteeism
Retention: A good maternity and family friendly policy can help to retain top talent – employees are more likely to want to work for an employer that is supportive of their family needs
Compliance: A maternity and family friendly policy can help employers to comply with the law – there are strict legal requirements that must be followed when it comes to maternity and paternity leave
Building a Diverse and Inclusive Workforce: A family friendly policy promotes diversity and inclusion by accommodating the needs of employees at different life stages. It sends a message that an organisation values and respects the diverse experiences and responsibilities of its workforce, including those related to family and caregiving.
Purchase and download a premade, customisable and legally compliant maternity and family friendly policy in the Symphony HR shop for just £55.00 + VAT.
Other policies to consider
These are just some essential HR policies that you should have in place as a small business in Scotland. It’s also worth considering these additional – but still important – policies:
Confidentiality policy
Data Protection policy
Health & Safety policy
IT Security policy
Modern Slavery policy
Right to Work policy
Pay and benefits policy
Performance Improvement policy
Social Media policy
Wellbeing policy
Whistleblowing policy
You can purchase and download all the policies we have mentioned (and many more) in this article in our HR policy shop.
Download all customisable HR policies
We know time is a precious commodity in your business. You don’t have time to create complex HR policies for your business, so we’ve had the hard work done for you by the UK’s leading employment law barrister.
These policies have been carefully designed for small businesses in Scotland with simplicity in mind and are easy to adapt to your particular industry and needs. They contain no complex legal jargon and are, of course, legally compliant under UK employment laws.
Individual policies cost only £55.00 + VAT, and all 26 policies are available to download for just £675.00 + VAT. Get an instant headstart and peace of mind by putting a wide range of HR policies in place. You won’t find better value for money.
Get expert HR policy advice from the people experts
For bespoke policies or tailored HR advice and support on creating and implementing policies in your business, call our people experts on 01382 211 222 or 01738 632 561. We are open from 9am to 5pm, Monday to Friday.
