HR Policy Templates for Small Businesses in the UK (What You Really Need)

HR policies can feel like overkill when you’re a small team, but they are an important part of protecting your business and managing people consistently. The challenge? Knowing which ones you actually need (and which ones are just “big business” fluff). 

Here’s what every small business in the UK should know about HR policy templates and how to make them work for you. 

Why HR Policies Matter (Even for Small Teams) 

If you employ people, you need to make the rules are clear. HR policies: 

• Set expectations and reduce misunderstandings 
• Help you stay compliant with UK employment law 
• Show fairness and consistency across your team 
• Provide a reference point if issues arise (disciplinary, performance, etc.) 

And when they are written clearly and used properly, they save you time, stress, and sleepless nights. 

Core HR Policies Every Small UK Business Should Have 

Start small. These 6 core policies are what we recommend for businesses with under 50 employees: 

• Disciplinary & Grievance Policy: You’re legally required to have this in writing and share it with employees. 
• Equality, Diversity & Inclusion Policy: Shows your commitment to fair treatment and protects you against discrimination claims. 
• Absence & Sick Leave Policy: Clarifies how staff should report sickness and what they’re entitled to. 
• Holiday Policy: Outlines how holiday is booked, how much leave employees get, and any rules around busy periods. 
• Flexible Working Policy: Since the law changed in 2024, all employees can request flexible working from day one. This policy helps you manage that fairly. 
• IT, Internet & Social Media Policy: Protects your business from reputational damage or data breaches caused by inappropriate use. 
• Health & Safety Policy (especially if you have a physical workspace): If you have five or more employees, the law says you must have a written Health & Safety Policy. This explains how you keep people safe at work, who is in charge of what, and the steps you take to prevent accidents. 

With these core policies, you are covering the essentials for following the law, managing your team, and protecting your business. Just be ready to evolve these as your business grows or your operations become more complex. 

Optional Policies You Might Want to Add 

As your business grows or evolves, consider these: 

• Maternity, Paternity & Parental Leave 
• Hybrid/Remote Working Policy 
• Training & Development Policy 
• Performance Review Guidance 
• Capability Policy 

You don’t need to include everything at once just start with the basics and build as needed. 

Common Mistakes with Policy Templates 

Using outdated documents, especially ones that aren’t written with UK law in mind, can cause problems down the line. Copying and pasting from big corporate templates might seem like a quick fix, but these often don’t reflect the size or culture of your business. Policies that are too vague leave too much room for confusion, while overly rigid ones are often ignored because they don’t work in real life.  

And if your policies are full of legal jargon, chances are no one will read or understand them anyway. 

How Dakota Blue Academy Can Help 

At Dakota Blue Academy, we provide small UK business owners with clear, customisable HR policy templates. They’re written in plain English, updated in line with UK law, and designed specifically for employers with under 50 staff. 

You’ll also get guidance notes so you know exactly when and how to use each policy, what to customise and how to introduce them to your team. 

Ready-to-Use Policy Templates for Small Businesses 

Subscribe to Dakota Blue Academy to get access to editable, legally compliant HR policy templates, along with step-by-step help guides designed specifically for small business owners. You’ll also receive ongoing support as employment law changes, so you’re never left behind. Take the guesswork out of HR and get policies that actually work for your business. Sign up now!