Do You Need an HR Policy If You Have Under 10 Employees?

It's one of the most common questions we hear from small business owners across Hertfordshire and London: "We're only a handful of people — do we really need formal HR policies?" The short answer is yes, but not for the reason most people expect.

The short answer

There's no UK law that says a business under a certain size must have written HR policies. But several things ARE legally required regardless of headcount — a written statement of employment particulars (required from day one under the Employment Rights Act), a disciplinary and grievance procedure people can point to, and clear health and safety information. Beyond that legal minimum, policies stop being paperwork and start being protection.

Why smaller businesses often skip this — and where it bites

When you're running a 6 or 8-person business, HR policy can feel like something for bigger companies with bigger budgets. The problem shows up later — usually during a dispute, a dismissal, or an employee grievance, when "we always just handled it informally" is exactly what an employment tribunal will ask you to explain. Without a written policy to point to, you're relying on memory and goodwill, and that's a weak position to defend from.

The policies worth having even at under 10 staff

You don't need a 40-page handbook. A handful of short, clear documents cover most of the risk:

• Written statement of employment particulars — legally required from day one.

• Disciplinary and grievance procedure — so everyone knows what happens if something goes wrong.

• Absence and holiday policy — removes ambiguity and awkward one-off decisions.

• Equal opportunities and anti-harassment policy — protects both your people and your business.

• Probation policy — makes it far easier to part ways early if a hire isn't working out.

When it stops being optional

The moment you're managing a performance issue, considering a redundancy, handling a TUPE transfer, or facing a grievance between two members of staff, informal "we'll sort it out" management becomes a real legal and financial risk. That's usually the point businesses call us — and it's almost always more expensive and stressful to build policy reactively, mid-crisis, than to have it in place beforehand.

Getting started

You don't need an in-house HR team to get this right. Progressive HR Solutions works with SMEs across Hertfordshire, London and the UK to set up practical, proportionate HR policies — built for a small business, not copied from a corporate handbook. If you're not sure where your business stands, get in touch and we'll tell you honestly what you need and what you don't.