Written by Joanne Hughes, Policy & Compliance Specialist at Policy Pros | Last reviewed: March 2026

Recommended Company Policies for 2025/2026

Building on our 2020 article titled "Policies Every Company Should Have", we have updated our guidance to reflect the significant legislative changes taking effect in 2025 and 2026.

Understanding which policies your business is legally required to have — and which are strongly recommended — can seem daunting. Questions such as "What policies does my business need?" and "How do new laws affect my existing documentation?" are among the most common enquiries we receive from UK employers.

This updated guide covers mandatory policy requirements, new policies driven by the Employment Rights Bill 2025, and a practical review checklist for HR managers and business owners.

Mandatory Policies Under Current UK Law

Several UK statutes impose direct or indirect obligations on employers to maintain specific written policies. While no single piece of legislation provides a complete list, the combined effect of the following laws means certain policies are essential:

Under the Employment Rights Act 1996: All employees are entitled to a written statement of employment particulars from day one of employment. This must include details of pay, hours, holiday entitlement, notice periods, disciplinary and grievance procedures, and pension arrangements. In practice, this means every employer must have documented disciplinary and grievance procedures at a minimum.

Under the Health and Safety at Work Act 1974: Any employer with five or more employees must have a written health and safety policy. This must include a general statement of intent, the organisation and arrangements for carrying out that policy, and details of specific risk assessments required by the Management of Health and Safety at Work Regulations 1999.

Under the Equality Act 2010: While the Act does not explicitly mandate a written equal opportunities policy, employers who lack one face significant difficulty defending discrimination claims. The Equality and Human Rights Commission (EHRC) recommends that all employers have a written policy covering their commitment to equality and the steps they take to prevent discrimination and harassment.

Under the UK GDPR and Data Protection Act 2018: Organisations that process personal data — which includes virtually every employer — must have appropriate policies and procedures in place to demonstrate compliance with data protection principles. The Information Commissioner's Office (ICO) expects to see documented data protection policies, privacy notices for employees, and data breach response procedures.

Under the Bribery Act 2010: Commercial organisations must have "adequate procedures" in place to prevent bribery. The Ministry of Justice guidance makes clear that a written anti-bribery policy, supported by risk assessments and training, is central to establishing this defence.

New Policies Required by the Employment Rights Bill 2025

The Employment Rights Bill 2025 introduces the most significant package of employment law reforms in a generation. Businesses must prepare updated or entirely new policies to address the following changes:

Day-one unfair dismissal protection: The Bill removes the current two-year qualifying period for unfair dismissal claims. From the date this provision commences, all employees will have protection from unfair dismissal from their first day of employment. Employers must review and update their disciplinary, capability and probationary period policies to ensure they include fair procedures from the outset — not just after a qualifying period has elapsed.

Flexible working as a default: Flexible working becomes a day-one right (building on the 2024 changes), and employers must demonstrate that any refusal is reasonable. Flexible working policies must be updated to reflect the strengthened requirements and the narrower grounds on which requests may be refused.

Zero-hours contract rights: Workers on zero-hours or low-hours contracts will gain the right to a guaranteed-hours contract reflecting their normal working pattern. Employers using variable-hours arrangements must introduce new policies covering how guaranteed-hours offers will be calculated, communicated and administered.

Fire-and-rehire restrictions: The Bill makes it automatically unfair to dismiss an employee for refusing to agree to a variation of their contract. Employers must update their change management and restructuring policies to remove any reliance on fire-and-rehire practices.

Strengthened trade union rights: New provisions around trade union access, information and consultation rights require employers to review their trade union recognition and employee relations policies.

Minimum Policy Set by Company Size

The policies your business needs depend in part on your size and structure. Below is a practical guide to the minimum recommended policy set at each level:

Sole traders and micro-businesses (1-4 employees):

• Written statement of employment particulars (legally required for all employees)
• Health and safety arrangements (written policy not legally required below 5 employees, but documented risk assessments are still necessary)
• Data protection and privacy notice
• Disciplinary and grievance procedures
• Equal opportunities statement

SMEs (5-49 employees): All of the above, plus:

• Written health and safety policy (legally required at 5+ employees)
• Absence management and sickness policy
• Flexible working policy
• Maternity, paternity and parental leave policies
• Anti-bribery policy (if any commercial activities)
• Whistleblowing policy
• IT and acceptable use policy
• Social media policy
• Employee handbook consolidating all of the above

Medium and large organisations (50+ employees): All of the above, plus:

• Modern slavery statement (legally required for organisations with turnover of 36 million pounds or more)
• Gender pay gap reporting procedures (legally required at 250+ employees)
• Trade union recognition and collective bargaining procedures
• Redundancy policy and procedure
• Change management policy
• Learning and development policy
• Environmental and sustainability policy
• Corporate social responsibility policy

Policies Newly Relevant in 2025 and 2026

Beyond the Employment Rights Bill changes, several policy areas have become increasingly important due to technological, social and regulatory developments:

AI usage policy: With the growing adoption of artificial intelligence tools in recruitment, performance management and decision-making, businesses need clear policies governing how AI may be used in employment contexts. This should address transparency, data protection implications under UK GDPR, bias prevention, and accountability for AI-assisted decisions.

Remote and hybrid working policy: Although remote working became widespread during the pandemic, many organisations still lack formal policies. A robust policy should cover expectations around working hours, communication, data security when working remotely, equipment provision, health and safety obligations for home workers, and the process for requesting or varying remote working arrangements.

Right to disconnect policy: While the UK has not yet legislated a formal right to disconnect, the Employment Rights Bill's emphasis on work-life balance and the growing body of case law around working time means that forward-thinking employers should consider implementing a policy that sets expectations around out-of-hours contact and availability.

Menopause policy: Following recommendations from the Women and Equalities Committee and increasing awareness of menopause as a workplace issue, many employers are now introducing standalone menopause policies. These should address reasonable adjustments, absence management, and manager training.

Neurodiversity and inclusion policy: Recognising the needs of neurodivergent employees — including those with autism, ADHD, dyslexia and dyspraxia — is increasingly seen as both a legal obligation under the Equality Act 2010 and a matter of good practice.

Policy Review Checklist for HR Managers

Use the following checklist to assess whether your organisation's policy suite is current and compliant:

• Have all policies been reviewed within the last 12 months?
• Do disciplinary and grievance procedures reference the current ACAS Code of Practice?
• Has the impact of the Employment Rights Bill 2025 been assessed against each relevant policy?
• Do employment contracts and written statements comply with the Employment Rights Act 1996 requirements for day-one documentation?
• Is there a written health and safety policy (if 5+ employees)?
• Are data protection policies aligned with current ICO guidance and UK GDPR requirements?
• Do flexible working policies reflect the strengthened day-one right to request flexible working?
• Is there a policy addressing zero-hours and variable-hours contract arrangements?
• Are family-friendly policies up to date with current statutory rates and entitlements?
• Is there an AI usage policy in place?
• Has the organisation considered a right to disconnect policy?
• Are all policies accessible to employees in a format they can read and retain?

For a full audit of your HR policies and procedures, or to discuss your organisation's specific requirements, contact our team. We also offer pre-configured policy document bundles for businesses looking for a comprehensive, cost-effective solution.

How Policy Pros Can Help

Keeping up with the latest policy and compliance requirements is essential. Here is how we can support your organisation:

1. Tailored consultations: Our specialists provide bespoke consultations to understand your unique business needs, identifying the specific policies you need to stay compliant with current and incoming legislation.
2. Custom policy creation: We develop tailored policies covering Human Resources, Health and Safety, Data Protection, IT Security and more, ensuring they comply with 2025/2026 regulations including the Employment Rights Bill 2025.
3. Compliance assurance: We ensure your business aligns with the latest UK regulations, including the Equality Act 2010, UK GDPR, Health and Safety at Work Act 1974 and the Bribery Act 2010, keeping your policies current.
4. Implementation and training: Beyond creating policies, we support their rollout, offering guidance for your team and strategies for seamless integration into your operations.
5. Ongoing support: The regulatory landscape is ever-changing. We provide continued assistance to review and update your policies as necessary, ensuring long-term compliance and efficiency.

Get in touch today to see how we can support your needs.