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The Top 5 Documents Every Small Business Needs

When you’re growing a small business, it’s tempting to push paperwork to the bottom of the list because your time is limited.

But a small collection of simple documents can save you from sleepless nights and problematic situations later on. Think of these documents as your safety net: they keep you legally compliant, reduce misunderstandings and help you to set a professional tone right from the start.

This blog sets out the five essentials every small business should have in place.

1. Employment Contracts

This one is non-negotiable HR document. Every employee has a legal right to a written statement of their main terms and conditions within two months of starting work. But a contract is more than a formality, it’s the backbone of your working relationship.

A well-drafted contract sets out:

  • Job role and responsibilities

  • Pay and working hours

  • Notice periods

  • Holiday entitlement

  • Benefits or perks

  • Any probationary period

Without employment contracts, you’re leaving things open to “he said, she said” disputes if there’s ever confusion about what was agreed.

2. Employee Handbook

A handbook pulls together all the information your employee needs to know about how your business runs, your culture and your policies. It doesn’t have to be jam-packed with everything, but it should be clear and cover:

  • A bit about your business and it’s culture

  • Information on annual leave and sickness absence rules

  • Signposting to what the key policies are and where they can be found

  • Your approach to equality and inclusion

  • Any other essential information, such as clocking in instructions, uniform/dress code guidance, when pay-day is and essential contacts within the business

Having a handbook creates consistency and makes sure everyone is treated fairly. It also helps to avoids confusion and gives new starters a starting point of information on their first day.

3. Disciplinary and Grievance Policy

No one likes to think about conflict, but it’s a reality in any workplace. Having a disciplinary and grievance policy in place doesn’t mean you expect problems, it means you’re prepared to handle them fairly if they do arise.

Your disciplinary policy should outline the steps you’ll take if an employee isn’t meeting expectations, while the grievance policy gives employees a clear route to raise concerns.

You don’t need pages of information and processes. A straightforward, step-by-step outline is enough to protect you and reassure your employees.

4. Health and Safety Policy

While this might feel more like an ‘operations’ document, it’s a key part of looking after your people. Even the smallest workplaces carry some risks, and your employees have the right to know how those risks will be managed.

If you employ five or more people, a written health and safety policy is a legal requirement. Beyond compliance, though, it shows your team you value their wellbeing and won’t cut corners on their safety, which is central to being a responsible employer.

5. Privacy Notice (GDPR)

This one sometimes gets filed under ‘legal’, but it’s just as relevant to HR. Every employer handles personal data - from emergency contacts to payroll details - and employees deserve to know how their information is used and protected.

A clear privacy notice builds trust. It explains what data you collect, why you need it, how it’s stored and how long you keep it. Sharing it with employees (and publishing it on your website) is a simple way to show transparency and compliance.

Need HR Support?

Putting these five documents in place doesn’t need to be complicated. Think of them as your business essentials: they protect you, support your people, and lay the foundations for smoother growth. Once they’re sorted, you can focus on what you do best - running and growing your business. If you’d like friendly, practical support tailored to small businesses, BloomHR is here to help

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